Introduction

This introduction presents an overview of the key concepts discussed in the subsequent chapters of this book. The book explores the forces that underpin industrial dynamism in a developing country. It examines how transnational corporations (TNC) affiliates adapt locally within emerging markets while sustaining their global competitive advantage. The book is concerned with exploring how the TNC-parent strategy influences its affiliates’ propensity to strike local linkages and utilize local scientific and technical talent in India. It discusses the welfare implications of the creation and distribution of intellectual property rights by TNCs in developing countries. A new approach is developed to determine how the returns from overseas research and development conducted by affiliates of TNCs are appropriated. The book provides the findings on adaptation, linkages and intellectual property generation from foreign direct investment. It outlines some case studies which gives an account of the comparative behaviour of TNCs vis-a-vis local enterprises in the telecommunication, electronic and pharmaceutical industries.