Evolution of the sectoral system of innovation of India's aeronautical industry

Abstract

India is one among the few developing countries that have sought to establish an aerospace industry. The industry has two components, namely aeronautical and astronautical. Historically speaking, India has focused much more on the astronautical part of the industry. However, in the present paper, the emphasis is on understanding the aeronautical part of the aerospace industry. We first map out the sectoral system of innovation of this industry, which is actually located as a cluster in the south Indian city of Bangalore. The paper identifies the three building blocks of the sectoral system: lead actors, knowledge or technology domain, and the demand. Changes in each of these blocks over time are discussed. The study concluded with a comparison of the performance of the sector in terms of exports and competitiveness and also delves on the policy instruments that are required for placing the industry on a sure flight path.