Industrialisation and Innovation: The Indian Experience

Indian industry has undergone a wide variety of changes since economic reforms were initiated in 1991. However, a question still being asked is: why, after 45 years of support through protectionist policies, did Indian industry need yet more time to become technologically competitive? Addressing this important yet neglected question, this book traces the history of industrialisation and innovation in India. Nasir Tyabji points out that the distinction between the knowledge of ‘how to make’ (manufacture) and the knowledge of ‘how to make better’ (innovation) has been overlooked in the country’s development plans. There is a stark contrast between India’s diversified and sophisticated manufacturing base and the near absence of innovative capabilities. In order to develop this theme, the author examines the Indian version of the ‘National system of innovation’. He maintains that along with the engineering and scientific aspects, this system should have incorporated ‘behavioural’ issues, critical amongst which are the attitudes of entrepreneurs towards workers and the work process. It is these which, in the final analysis, create and sustain an innovative mode of manufacturing and production. The book concentrates on the performance of firms in the industrial goods sector which are mostly privately owned corporations. Dr. Tyabji argues that the key policy issue for the future growth of India’s industrial sector lies in inducing the promoters of firms to adopt managerial systems focused on innovative modes of production, in addition to technical issues of bringing innovations to the stage of successful commercialisation. Integrating the technical production process with the social-systemic labour process, this unusual book provides a holistic definition of technology by combining theoretical discussions with historical accounts and contemporary case studies. It will be of interest to all those in the fields of economics, organisational management and behaviour, business, policy and planning, technology management and industrial development.