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In today's global economy, the ability of a country to develop, adapt and harness its innovative potential is becoming critical for its long term economic performance. This fact acknowledged by the endogenous growth literature is starting to generate policy results as seen by the focus on innovation as a top government policy agenda in most developing and emerging economies of the world. India is no exception to this trend. Recently, India's Prime Minister has called upon the country's scientists to unleash a decade of innovation. Even though India is yet to formally adopt a national innovation policy, the different ministries and departments associated with various sectors have articulated and budgeted for three main innovation policy challenges: enhancing innovation potential in new technologies, building technological capabilities and competitiveness in the manufacturing and service sector and reconfiguring the formal and informal sectors. In this context, the S&T and Industry chapter seeks to identify the nature and extent of innovative activities in the country, while it provides an overview of available policy support, enabling regulatory framework and S&T intervention mechanisms which could take India to the forefront of global innovative activities.
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