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With the new emerging trend of internationalization of R&D, MNCs are targeting developing countries in Asia for setting up their dedicated R&D centres. The resource scarcity in developed countries, due to escalating demand on S&T infrastructure and the prohibitive cost of highly skilled manpower has brought in this new trend. The skilled manpower and the reasonably developed S&T infrastructure have been drawing MNCs to the shores of India for setting up their dedicated R&D centres. Presence of foreign R&D will have some impact on the host country; it could be negative or positive. As more and more R&D centres are being allowed to operate in India, we presume that foreign R&D has been allowed here expecting some positive impact (or benefits) on our innovation system. The benefits to India, however, is the grey area. The available literature suggests that the presence of foreign R&D centres can trigger the spillover effect onto the host country's innovation system depending on the ability, preparedness and conducive policy package of the host country. This article proposes the need for a detailed investigation into the dynamics of interaction between foreign R&D centres and the Indian production and R&D system, to understand the positive impact. This would help in developing a conducive policy package for maximizing the benefits. [ABSTRACT FROM AUTHOR]

The article offers the author's view regarding the effects of budget cuts to the research and development (R&D) of the science and technology sector in India. The author states the manpower retrenchment, roll-back of plan objectives, and restrictions on new employees. The author notes that institutions without buffers such as financial cushions, organizational strengths, and cash flows are the worst affected by the budget cuts. The author mentions that the quality of the R&D will be affected.

The article focuses on the number of scientific researches that are taking place around the world. It includes information on the number of science and engineering (S&E) articles published from 1995 to 2009 along with information on a comparative report of the factors related to the publication of articles among various countries. The article urges the need of expenditure in research and development and quality S&E manpower in India to emerge as a knowledge-base economy of the world.