R&D Strategy of Small and Medium Enterprises in India
AbstractThe liberalization of economic policies in the last two decades and intensifying market competition tend to be a cause of policy concern for the survival of SMEs in emerging economies like India. These SMEs account for the largest chunk of industrial units and employment in the national economy. Yet, most of them are competing with deeply inadequate resources, especially by means of weak technological capabilities. The present study has provided not only preliminary estimates on SME R&D investments in Indian manufacturing and their broad trends and patterns, but also contributed to the understanding of factors driving the SME in-house R&D activities. It shows that Indian SMEs continue to be vulnerable among all firms as they have the lowest incidence of doing in-house R&D and their R&D intensities have fallen in the last decade. Based on the results from three-step Censored Quantile Regression, this study has suggested a set of useful policy implications for enhancing SME R&D.
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Bibliographic InfoPaper provided by Economics and Econometrics Research Institute (EERI), Brussels in its series EERI Research Paper Series with number EERI_RP_2010_14.
Date of creation: 14 Aug 2010
Date of revision:
SMEs; R&D; Business Groups; Foreign Firms.;
Find related papers by JEL classification:
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
- L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-09-03 (All new papers)
- NEP-CSE-2010-09-03 (Economics of Strategic Management)
- NEP-ENT-2010-09-03 (Entrepreneurship)
- NEP-INO-2010-09-03 (Innovation)
- NEP-KNM-2010-09-03 (Knowledge Management & Knowledge Economy)
- NEP-SBM-2010-09-03 (Small Business Management)
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- Pradhan, Jaya Prakash, 2011. "Regional heterogeneity and firms’ innovation: the role of regional factors in industrial R&D in India," MPRA Paper 28096, University Library of Munich, Germany.
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