IDEAS home Printed from https://ideas.repec.org/a/sae/millen/v9y2018i3p278-294.html
   My bibliography  Save this article

Interconnection between R&D and Industrial Production Structure: The Experience of India

Author

Listed:
  • Lakhwinder Singh
  • Deepika Chawla

Abstract

Indian government initiated systematic opening up of its industrial economy in the early 1980s and this trend continued with greater pace and force in the 1990s and beyond. Theoretically, it is postulated that evolution of the innovation system and production structure co-evolve. But globalization may have either distorted this pattern due to lack of availability of access to new technologies from global market or forced the firms to increase in-house R&D investment to remain competitive. However, the caveat here is that public R&D has definitely gone down and to what extent the private sector has been able to enhance R&D investment to emerge as a leader is an issue which remains to be examined. In this context, the aim of this article is to examine the growth and change in the structure of industrial R&D in India and further ascertain the co-evolution and interconnection between industrial innovation system represented through R&D structure and industrial production structure in India. This study covers the period 1981–2010 while classifying the industries into four categories, that is, high-tech (H-T), medium high-tech (M-H-T), medium low-tech (M-L-T) and low-tech (L-T). Trend growth rates and Karl Pearson’s correlation coefficients are used to establish the relationship between structural change in industrial R&D and industrial output structure. The main findings show that the structural transformation in industrial R&D is well evident with rising importance of H-T and M-H-T group of industries in R&D whereas M-L-T and L-T industrial R&D recorded declining trends. Furthermore, this study has established an empirical relationship between structural change in industrial R&D and industrial output structure except M-L-T group of industries. An important policy implication that emerges for the sectoral innovation system is that developing countries like India should devote more efforts to strengthen the innovation system devoting higher proportion of resources for innovations.

Suggested Citation

  • Lakhwinder Singh & Deepika Chawla, 2018. "Interconnection between R&D and Industrial Production Structure: The Experience of India," Millennial Asia, , vol. 9(3), pages 278-294, December.
    • Handle: RePEc:sae:millen:v:9:y:2018:i:3:p:278-294
    DOI: 10.1177/0976399618807982
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0976399618807982
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0976399618807982?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Malerba, Franco, 2002. "Sectoral systems of innovation and production," Research Policy, Elsevier, vol. 31(2), pages 247-264, February.
    2. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    3. Palan, Nicole & Schmiedeberg, Claudia, 2010. "Structural convergence of European countries," Structural Change and Economic Dynamics, Elsevier, vol. 21(2), pages 85-100, May.
    4. Robert E. Evenson & Lakhwinder Singh, 1997. "Economic Growth, International Technological Spillovers and Public Policy: Theory and Empirical Evidence from Asia," Working Papers 777, Economic Growth Center, Yale University.
    5. Sunil Mani, 2006. "The Sectoral system of innovation of Indian pharmaceutical industry," Centre for Development Studies, Trivendrum Working Papers 382, Centre for Development Studies, Trivendrum, India.
    6. Fagerberg, Jan & Verspagen, Bart, 2002. "Technology-gaps, innovation-diffusion and transformation: an evolutionary interpretation," Research Policy, Elsevier, vol. 31(8-9), pages 1291-1304, December.
    7. Griliches, Zvi, 1980. "R & D and the Productivity Slowdown," American Economic Review, American Economic Association, vol. 70(2), pages 343-348, May.
    8. Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-596, September.
    9. Miozzo, Marcela & Walsh, Vivien, 2006. "International Competitiveness and Technological Change," OUP Catalogue, Oxford University Press, number 9780199259243, Decembrie.
    10. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aikaterini Kokkinou, 2006. "Innovation and Productivity a Story of Convergence and Divergence Process in EU Countries," ERSA conference papers ersa06p452, European Regional Science Association.
    2. Fulvio Castellacci, 2007. "Technological regimes and sectoral differences in productivity growth ," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 16(6), pages 1105-1145, December.
    3. Fulvio Castellacci, 2007. "Evolutionary And New Growth Theories. Are They Converging?," Journal of Economic Surveys, Wiley Blackwell, vol. 21(3), pages 585-627, July.
    4. Aikaterini Kokkinou, 2005. "Entrepreneurship, Innovation Activities and Regional Growth," ERSA conference papers ersa05p419, European Regional Science Association.
    5. Juan Ricardo Perilla Jimenez, 2019. "Mainstream and evolutionary views of technology, economic growth and catching up," Journal of Evolutionary Economics, Springer, vol. 29(3), pages 823-852, July.
    6. Teixeira, Aurora A.C. & Tavares-Lehmann, Ana Teresa, 2014. "Human capital intensity in technology-based firms located in Portugal: Does foreign ownership matter?," Research Policy, Elsevier, vol. 43(4), pages 737-748.
    7. Alessandro STERLACCHINI, 2006. "Innovation, Knowledge and Regional Economic Performances: Regularities and Differences in the EU," Working Papers 260, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    8. Camilla Mastromarco & Léopold Simar, 2021. "Latent heterogeneity to evaluate the effect of human capital on world technology frontier," Journal of Productivity Analysis, Springer, vol. 55(2), pages 71-89, April.
    9. Pop Silaghi, Monica Ioana & Alexa, Diana & Jude, Cristina & Litan, Cristian, 2014. "Do business and public sector research and development expenditures contribute to economic growth in Central and Eastern European Countries? A dynamic panel estimation," Economic Modelling, Elsevier, vol. 36(C), pages 108-119.
    10. Tappeiner, Gottfried & Hauser, Christoph & Walde, Janette, 2008. "Regional knowledge spillovers: Fact or artifact?," Research Policy, Elsevier, vol. 37(5), pages 861-874, June.
    11. Nejla YACOUB, 2012. "Brevetabilité des médicament, innovation et l’avenir de l’industrie pharmaceutique en Tunisie DRUGS PATENTABILITY INNOVATION AND THE FUTURE OF THE PHARMACEUTICAL INDUSTRY IN TUNISIA THEORETICAL STUDY ," Working Papers 248, Laboratoire de Recherche sur l'Industrie et l'Innovation. ULCO / Research Unit on Industry and Innovation.
    12. Erika Raquel Badillo & Rosina Moreno, 2018. "Does absorptive capacity determine collaboration returns to innovation? A geographical dimension," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 60(3), pages 473-499, May.
    13. David Audretsch & Max Keilbach, 2004. "Entrepreneurship Capital and Economic Performance," Regional Studies, Taylor & Francis Journals, vol. 38(8), pages 949-959.
    14. Christos N. Pitelis, 2011. "Foreign Direct Investment and Economic Integration," Chapters, in: Miroslav N. Jovanović (ed.), International Handbook on the Economics of Integration, Volume III, chapter 1, Edward Elgar Publishing.
    15. Zoltán J. Ács & Pontus Braunerhjelm & David B. Audretsch & Bo Carlsson, 2015. "The knowledge spillover theory of entrepreneurship," Chapters, in: Global Entrepreneurship, Institutions and Incentives, chapter 7, pages 129-144, Edward Elgar Publishing.
    16. Charles R. Hulten, 2000. "Total Factor Productivity: A Short Biography," NBER Working Papers 7471, National Bureau of Economic Research, Inc.
    17. Kokko, Ari & Tingvall, Patrik Gustavsson & Videnord, Josefin, 2015. "The growth effects of R&D spending in the EU: A meta-analysis," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 9, pages 1-26.
    18. Zakaria Babutsidze & Maurizio Iacopetta, 2016. "Innovation, growth and financial markets," Journal of Evolutionary Economics, Springer, vol. 26(1), pages 1-24, March.
    19. Ismail Senturk & Fiaz Ahmad Sulehri & Syeda Mehak Ali, 2022. "Financial Development and Innovation Led-Growth: A Case of Selected Developing Countries," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 8(3), pages 81-97, September.
    20. Inhye Yoo & Chan-Goo Yi, 2022. "Economic Innovation Caused by Digital Transformation and Impact on Social Systems," Sustainability, MDPI, vol. 14(5), pages 1-18, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:millen:v:9:y:2018:i:3:p:278-294. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.