Why have Indian and Chinese firms been growing very fast ?

Before the Covid crisis, we have seen great industrial growth both in the West and the East, the east being dominated by China and India. Throughout the middle of the twentieth century and the first two decades of the twenty first century, we have seen China and India grow from very poor economic environment due to colonialism to grow to the top three economies o the world.

During this period, the technological growth has been made possible because of licensing all the research and development from western countries to India and China.

There are three ways by which a company can grow, 

1. conduct internal research and develop knowledge on their own, 

2. by joining alliances and develop technology, which would be bit more faster than the first route and
3. by licensing this innovation and knowledge from the original developers. 

This has been proved true by research conducted in the Bio pharmaceutical industry by Solon Moreira and Thomas Mamillan and published in HBR June 2020.

Next time, an industry is at cross roads to decide how to develop using technology, the licensing route is much more economical and faster than the indigenous development route of developing technology.

George