However, at present, India is nowhere close to producing globally competitive firms, Vembu observed.
The Padma Shri awardee first explained the ‘why’ part of the question: ‘Can India produce globally competitive companies such as Apple, Google, Pfizer, Samsung, Honda, Boing, Siemens, TSMC, or Huawei? ‘
“These companies are of utmost importance to their host countries as they contain advanced knowledge and R&D capabilities essential for modern life and nationalism. Most important R&D happens within such companies,” he said in a tweet. said in.
“These companies enjoy a disproportionate share of the economic value as well as profits (compared to their direct impact on employment) and pay heavy taxes to their host countries through their well-compensated employees and directly through corporations.” That is why,” added the 54-year-old.
Vembu then moved to the ‘how’ part.
“To build such companies in India, the Indian private sector must invest heavily in R&D. There is no other way. The government should encourage and persuade companies to invest in R&D. Industrial research and development is not the same as academic research,” tweeted the Zoho CEO, adding that investing in research and development in the private sector yields ‘enormous’ returns, and these are linked to higher GDP growth and higher GDP per capita. appear as.
On where firms can find skilled people for private sector R&D, they conclude that investment by private firms in research and development signals a deep commitment, and this in turn attracts talented people.
research and development
According to britannica.comThese are two closely related processes in industry, through which new products, as well as old products but in a new form, are created using technological innovation.