The profitability of companies having foreign collaboration, measured in terms of the ratio of gross profit to capital employed, slipped to 11.3% in eighth round (2007-10) from 13.2% in the previous round (1994-2001). However, the number of employees in these companies went up from 62,166 in 2007-08 to 71,268 in 2009-10. Indian companies sourced technology mostly from the US, Germany, the UK and Japan.
Most foreign collaborations entered into by Indian companies are for technology transfer followed by trademark or brand name. Royalty and lump-sum technical fees account for about 45% of the payment for the foreign collaboration.