Competition policy
Strengthening international competitiveness in knowledge based industries: a strategic approach
Enhancing international competitiveness in India
Authors:
N. Kumar; K.J. Joseph
Publisher:
Research and Information System for the Non-Aligned and Other Developing Countries, India, 2007
Why are some Indian firms more competitive exporters than others? This policy brief provides an analysis of the firm-level determinants of export competitiveness in India.
Factors influencing export competitiveness identified include:
- larger firms have an edge to firms in the overseas markets
- innovative activities undertaken by the firms is most effective among high- and medium-technology industries
- outward investment enhances visibility abroad
- facilitating flows of market information and providing after-sales services are important aspects of competitiveness
- older firms tend to lack the flexibility, specialisation, core competencies, and innovativeness that are crucial for succeeding in international markets
Based on findings, authors offer key recommendations for a strategic perspective on enhancing international competitiveness in India. Suggestions include:
- promote corporate excellence and national champions
- strengthen the national innovation system by supporting enterprise-level research and development and promoting industry academia interaction
- promote outward investment
- attract export-oriented foreign direct investments
- facilitate and promote export by endorsing brand equity and conforming to international standards
- increase public-private partnerships for infrastructure and human resource development
