Innovation In India

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How Technology and Innovation Is a Key Factor for SMEs to Grow in India Small & Medium Enterprises (SMEs) are socially and economically important sectors in India that provide 60 million jobs representing 15% of India’s workforce through 26 million enterprises. Due to their unique characteristics and their multi-faceted contributions in terms of technological innovations, employment generation and exports, etc., SMEs have been considered as one of the driving forces of modern economics. Among their other inputs, its capability to undertake technological innovations assumes significance because, in modern economic thinking, innovation plays a vital role in the development of industries. Technological Innovation and Globalization have produced…show more content…
However, technological innovation has been characterized in different ways in different contexts. In the developing countries like India, it is defined as the process by which owner of a firm or industry implements innovative and fresh ideas and creates goods or provides services that are new to the economy of a particular emerging country irrespective of whether they are new to their competitors, or the other nations. Overall, adopting or introducing new products and processes and necessary technological improvements in them is indispensable for the growth of a firm, industry or economy. SMEs are known for their adaptability and approachability, reduce transaction, advertising and promotion cost, prompt communication with clients, removing traditional supply, quick decision making, etc. There is significant pragmatic evidence to show that SMEs have these innate characteristics that are likely to be a central key of their success. However, In India, most of the SMEs initiated technical innovations due to clients’ pressure and product innovations were mostly limited to altering shapes/sizes/designs/ of products as per the clients’…show more content…
Adoption of technology and innovation enables such enterprises to survive in tough competition, global economic crises and recession, and compete against large organizations. Nonetheless, SMEs ability and knowledge to carry out technological innovations is limited. They face many limitations for undertaking innovations - of them the most important one is technical potential. Although they have some internal technical ability yet they often search for some external support. However, many of SMEs has carried out innovations only with some internal efforts. SMEs which have strong internal as well as external support produced better innovation performance in the form of a large share of innovated products in total sales. In addition, financial institutions and government of India are less supportive to these small-medium enterprises. Technological innovation prompts development of individual enterprises at the micro level and provides them a new dimension to industrial productivity and development at the macro level. Those firms and industries who want to grow and maintain a competitive edge or gain in to new markets should welcome technological innovation. Therefore, technology and innovation is a key factor in a firm’s competitiveness. It is the crucial source of efficiency and growth. In this way, it is needed to spread the awareness through “innovate and succeed” campaign

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