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In India, Anxiety Over the Slow Pace of Innovation

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Thu Dec 10 2009

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(From the New York Times) - In the United States and Europe, people worry that their well-paying, high-skill jobs will be, in a word, "Bangalored" - shipped off to India.

People here are also worried about the future. They fret that Bangalore, and India more broadly, will remain a low-cost satellite office of the West for the foreseeable future - more Scranton, Pa., in the American television series "The Office," than Silicon Valley.

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Even as the rest of the world has come to admire, envy and fear India's outsourcing business and its technological prowess, many Indians are disappointed that the country has not quickly moved up to more ambitious and lucrative work from answering phones or writing software. Why, they worry, hasn't India produced a Google or an Apple?

Innovation is hard to measure, but academics who study it say India has the potential to create trend-setting products but is not yet doing so. Indians are granted about half as many American patents for inventions as people and firms in Israel and China. The country's corporate and government spending on research and development significantly lags behind that of other nations. And venture capitalists finance far fewer companies here than they do elsewhere.

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