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Abstract This chapter discusses India. Following the 1972 patent law amendment that prohibited product patents in pharmaceuticals, new Indian pharmaceutical firms entered and old firms expanded, competing to reverse‐engineer bulk drugs. Also, two government pharmaceutical firms provided a training ground for scientists who later established private firms. Since the 1990s, some firms began to move away from imitation to innovation but, with the 2005 reform of the patent law to comply with TRIPS, the future of the pharmaceutical industry is yet unclear. In software, the growth was supported by the liberalization in the 1980s and 1990s that made the import of hardware and multinationals' investment easier, and by the presence of a large pool of technically trained engineers. Unlike pharmaceuticals, however, patents were generally not a big factor.
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