Innovation policy in a developing country: India

Abstract

Extensive changes in the global economy and continuing process of globalization has become one of the most important factors affecting the functioning of countries and companies. Building a competitive advantage, both for the company and the state, became one of the most important tasks for economic policy. Changes in social, political and economic environment in recent years have made and shown that one of the major factors, which every state can have, is the knowledge, also the ability to develop it, extend and implement. The main policy challenge of all countries is the construction of knowledge-based economy and strengthening the innovative attitude, which can provide a competitive advantage for companies, regions and the state. Developed innovation policy has been considered for a long time as a phenomenon proper for developed countries, however, this form of action increasingly occurs and develops in developing countries. In India, the second most populous country in the world, this type of policy has also been developed and adapted to the local conditions. The aim of the article is to explain how the innovation policy is functioning in India, a developing country.