Role of higher education sector in changing service sector innovation system

Published date03 October 2012
Date03 October 2012
DOIhttps://doi.org/10.1108/20425941211271478
Pages260-272
AuthorSeema Joshi
Subject MatterPublic policy & environmental management,Environmental technology & innovation
Role of higher education sector
in changing service sector
innovation system
Seema Joshi
Department of Commerce, University of Delhi, Delhi, India
Abstract
Purpose – The purpose of this paper is to identify the role of universities in the service sector
innovation system of India.
Design/methodology/approach – Use was made of secondary sources of data suc h as various
reports, books and jour nals, to gather information on what constitutes the national innovation system
(NIS) of a country. An attempt was made to assess the performance of India’s innovation system,
which comprises investment, infrastructure, knowledge and skill generation, and relations and
linkages. The author made broad use of this conceptual framework to make an assessment of the
performance of the changing service sector innovation system in India. To examine the performance of
India’s NIS, three elements were focused on: R&D, FDI in services, and status of higher education
sector.
Findings – The paper concludes that India has a well-functioning service sector innovation system
yet much needs to be done if India wants to keep alive her ambition of becoming a knowledge
powerhouse or innovation superpower. Moreover, the private sector can play an important role in the
improvement of quality of education, as has been revealed by the example of NASSCOM.
Originality/value – While there is some research on the NIS of India, not much has be en written
about the service sector innovation system of India. The paper fills this gap in the current literature to
some extent.
Keywords India, Universities, Research and development, Science, Technology, Innovation,
Globalization, Internationalization of R&D, FDI, Service sector innovation system,
National innovation system
Paper type Conceptual p aper
I. Introduction
In the decade of 1950s and 1960s the supremacy of the USA in science and technology
and innovation was well known. With increasing globalization many new players have
come to the forefront including India. The supremacy of the USA is seriously
challenged and partially eroded. There has been g radual emergence of nations
such as Scandinavian countries and South East nations such as China and India as
innovators (see Richardson, 2002). India is making its presence felt by transition from
an imitator to innovator. According to Economist Intelligence Unit (EIU) (2009), India’s
rank in the Economist Group’s Global Innovation Index for 82 countries improved from
58th place in 2006 to 56th in 2008, with a further prog ression predicted to 54th place
by 2013 (Mani, 2010). India has emerged as the fourth-largest economy in the world
in purchasing power parity dollars (World Bank, 2011). India has emerged as one of the
major destinations for conducting corpo rate offshore research and development (R&D)
(Desai, 2011). Several studies point out that India is one of the attractive locations
world wide for R&D and innovation off shoring (LTT Research, 2007; Economic
Intelligence Unit, 2004; A T Kear ney, 2006; Boston Consultancy Group, 2006 as quoted
in Herstatt et al., 2008). The European Union counts India among “major R&D
performing countries in the world.” It has been pointed out by Mani that the
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/2042-5945.htm
WorldJour nal of Science, Technology
and Sustainable Development
Vol. 9 No. 4, 2012
pp. 260-272
rEmeraldGroup PublishingLimited
2042-5945
DOI 10.1108/20425941211271478
260
WJSTSD
9,4

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