This chapter examines the interplay between efficiency and innovation, highlighting challenges like institutional gaps, reliance on foreign technology, and risks that arise from automation and disruptive technologies. It stresses that Indian firms today need to shift toward product innovation through modular governance in global value chains, by fostering knowledge sharing, and investing in R&D. Examples like ISRO’s Mars mission and the Tata Nano showcase the power of combining design thinking with cost-effective strategies and processes. This chapter argues in support of policy initiatives that will transform India into an innovation-driven economy, which addresses socio-economic needs of people and reduces dependence of Indian organizations on foreign multinationals for new technology.