The present paper is an attempt to focus on the international dimensions of innovation policies that are likely to affect technological change and development process. Recently, a new dimension of innovation has been added by the offshoring of R&D services in India. This phenomenon was mainly confined to the triad countries but recently a number of firms from China, Korea and Taiwan have also figured in this process. Many theoretical and empirical studies are proving to be inadequate to explain this process of globalization of innovation. The present paper attempts to analyze the role of new actors, learning process and its impact on India’s innovation system and discontinuity in India’s cooperation policy if any. It is contended here that due attention on the interactions between ‘national’and ‘international’innovation systems can no longer be ignored for evolving balanced S&T policies.