The corporate sector in India is presently growing at a rapid rate especially in the knowledge sectors. In case of pharmaceuticals industry, the strategy of leading Indian pharmaceutical firms is to close the 'technology gap' by buying up small technology firms abroad while concurrently enhancing their R&D resource base.

While there is outsourcing of R&D and production in pharma to India by MNCs, Indian firms are outsourcing technology from abroad by acquisitions even from UK, Europe and USA, noted Union minister for science and technology, Kapil Sibal in the 12th Technology Summit at New Delhi.

There is an increased globalisation of R&D resources as exemplified in case of India by global exploitation of technology which is directly related to export flows in products and services, global technological collaboration which has become prevalent in almost all knowledge sectors be it pharmaceuticals or biotechnology, and global generation of technology, as exemplified by R&D and technical units.

There are several such R&D and technical centres of leading global firms operating in India, which strengthen the national innovation system in size and outlay. In today's globally competitive environment, no firm - large or small - can survive without innovating. However, the paradox of innovation is that while it is driven by competition it cannot flourish without co-operation, Sibal added.

Pharmaceuticals and biotechnology companies are devising newer business processes and models faster than government can comprehend, making it difficult to anticipate policy issues, build public-private partnerships or avoid unintended social and ethical consequences of such technological and business actions, he noted.