Firms ignore Gujarat while setting up R&D units

Since the signing of the General Agreement of Trade and Tariff (GATT) in 1993, a large number of global firms have set up research and development centres in the technology-intensive sectors to access local manpower. While a majority of these are in Hyderabad and Bangalore, Gujarat has been ignored.

Almost half the R&D centres in the recent past have been set in Bangalore and Hyderabad. Delhi and Maharashtra have also got a sizeable chunk. However Gujarat has not got any new R&D centre.

Gujarat is thus missing out on infrastructure development and the generation of employment opportunities.

Moreover, the state is losing on returns in the form of know-how payments and royalty, said an official of the state government.

"Hyderabad and Bangalore are becoming the hubs for R&D centres because of the availability of cheap manpower for the knowledge-based industry. Gujarat has been neglected by the international firms because it's known as a manufacturing base. However, the government of Gujarat is trying to develop infrastructure to lure international firms to set up R&D bases here," said Chandan Chatterjee, general manager, project and technology, Industrial Extension Bureau (Indextb), a Gujarat government enterprise.

"Even though there are many R&D laboratories in the state, there is poor integration between these and the industry. This not only affects the industry's ability to develop newer technology, but also its capacity to make full use of whatever technology is imported or absorbed from outside," Chatterjee added.

The companies that have set up R&D bases in Bangalore include Monsanto, Daimler Chrysler, Unilever, Pepsico, GE, LG Electronics, Gulf Oil and Sanyo.