New product design and development is more often than not a crucial factor in the survival of a company. In an industry that is changing fast, firms must continually revise their design and range of products. This is necessary due to continuous technology change and development as well as other competitors and the changing preference of customers. Without an R&D (Research and Development) program, the firm must rely on strategic alliances, acquisitions, and networks to tap into the innovations of othersResearch and development (R&D) is an essential facet of any industrial activity especially, in the wake of growing competition. It is a well known fact that R&D in industries is essential for generating know-how necessary for production of quality products, promoting efficiency, promoting export and technological self adaption and up gradation of imported know-how. Indian economy has changed in many ways after the liberalization drive. The change is also visible in its national innovation due to the exposure to market forces. A number of global firms have started R&D centers in India. Many private firms have increased their R&D spending.