Patterns of Technological Change — An Innovation Process to Achieve Indigenous Technological Capability in Indian Paper Industry

Abstract

The present study examines the innovation process in selected firms engaged in paper making in India. The analytical perspective has its bas is on the existence of a wide variety of possibilities in the ‘‘innovation process’’ and is linked to the recent tradition of evolutionary theories of technological change. At a firm level this technological change (TC) is an on-going process, which is almost always of an incremental nature. In developing countries, these incremental innovations are important. These do not have the capability to produce frontier technologies. The present firm level analysis focuses on such incremental innovations as a process to achieve indigenous technological capability (ITC), particularly to use imported technologies more effectively through adaptation and improvement process.

The study confirms that the ‘‘learning by<i> </i>doing’’ process is one of the indicators for these firms in building the capability to indigenise and improve upon the technology. In-house R&amp;D units at firm level provide a strong support to achieving indigenous technological capability. A special focus has also been made on inter-firm technological linkages, which also assist firms’ learning processes.