Technological Innovation and Regulation as Determinants of Business Growth

For growth and survival of the business, technological innovations and regulatory reforms in business are absolutely necessary. Over the years, it has become evident that businesses cannot sustain without innovation and since technology is the major facilitator of innovation, it is imperative to sustain and grow businesses. An easy and encouraging regulatory environment is icing on the cake. Technology in business caused tremendous growth in trade & commerce and business concepts & models were revolutionized as a result of the introduction of technology. This chapter studies the role of technological innovations and regulations in the growth of foreign direct investment in an emerging economy, India. Using data for a 10-year period (2008-2017), the sophisticated tools, namely augmented Dickey-Fuller test, Johansen Co-integration test, and Linear Regression analysis are applied. The results show that technological innovations and regulations have a positive impact on attracting foreign direct investment into India and in turn, helping the business in India to grow.