BUSINESS ENVIRONMENT AND INNOVATION IN INDIAN FIRMS

The present paper identifies the determinants of firm-level innovation in India using the enterprise survey data for the year 2010. Innovation is a key factor affecting firm competitiveness and performance. It has both technological and non-technological aspects and is determined by internal and external factors. Firm-specific characteristics and the domestic business environment, also termed as the national innovation systems (NIS), comprising organizations, institutions and government policy affect firm's ability and inclination to innovate. Comparisons are also made with the 2005 survey which has four different forms of innovation.