R&D is a major source of technological change. It has become an integral part of corporate activity in industrially advanced countries. Highly technology- based products of these countries pose major threat to Indian products in the global market. At this juncture, technological up-gradation is the need of the hour as far as Indian firms are concerned. In- house R&D efforts are of vital importance to Indian Industry as its specific requirements can not be met with technology imports alone. Local R&D efforts are essential to assimilate and adapt imported know-how. Therefore, one of the great challenges facing Indian Industry is to gear up local R&D to enhance its technological capability. This book attempts to identify the major determinants of the probability of undertaking R&D in Indian Industry as well as to assess the impact of R&D on firm performance. The focus is on a specific sector of manufacturing, namely, the chemical sector. The analysis would be of useful to professionals, researchers, policy makers and any one else who may be interested in this field.