China may soon overtake India in MNC R&D investments, warns a latest study by Zinnov. At present, India and China compete neck to neck in attracting R&D spends from global companies like Volvo and Yahoo. But China could run past India given its investor-friendly policies, lucrative domestic marketand maturing R&D ecosystem.
China’s MNC R&D investment is growing at almost 16 per cent against 10.5 per cent in case of India. Despite India's promise of higher cost savings for companies doing R&D work, China has been able to attract 200 new R&D centres post recession. In contrast, 50 new centres were opened up in India between October 2008 and March 2011.