ABSTRACT
In the rapidly changing global scenario, the concept of attaining competitiveness on the basis of abundant and cheap labour, favorable exchange rates and concessional duty structure is becoming insufficient and therefore, not sustainable. The key questions are: how quickly the industry is able to adapt to the challenges of the fast changing environment and how well the industry is able to integrate the technology management and innovation with the business strategies of the firms. Hence, the main research gaps identified from the literature review are as follows:
(a) In emerging economy like India, different aspects of innovation capabilities like R&D capability, specialized skills for R&D, manufacturing capability, organizational capability, strategic planning and marketing capability of SMEs (auto-component suppliers and subcontractors) have not been studied at automobile cluster.
