ABSTRACT

The database and the case studies presented in the earlier chapters clearly indicate that the scope of R&D activities carried out in developing countries has broadened in recent years. In the past, R&D activities performed in developing countries were limited to adaptation (TTU) and, at the most, product development for the local market (ITU). Behrman and Fischer (1980) in their survey found that of the 106 R&D units abroad belonging to the 31 US-based TNCs, about 28 per cent were involved in new product research and 59 per cent were carrying out limited functions of applied R&D. The former category was located entirely in Western Europe. Although some applied R&D activities were carried out in developing countries, their scope was limited to adaptation and local product development work. Developing countries were mainly locations of technical services. Animal and farm facilities for testing of veterinary products, pesticides and agricultural products were located mostly in tropical developing countries.1