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The role of domestic-firm knowledge in foreign R&D collaborations: Evidence from co-patenting in Indian firms

Author

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  • Mathew, Nanditha

    (UNU-MERIT)

  • Napolitano, Lorenzo

    (Joint Research Center (JRC), European Commission)

  • Rizzo, Ugo

    (Department of Mathematics and Computer Science, University of Ferrara)

Abstract

In this paper we analyze the impact of foreign R&D collaborations on the performance of domestic firms and how the relationship is augmented by the pre-existing capabilities of the domestic firms. Using data on Indian firms, we study patterns of co-invention of Indian firms with foreign partners. The results from a causal mediation analysis confirm the crucial role played by domestic firms' absorptive capacity in enhancing the benefits from a foreign collaboration. The evidence we present in this work highlights the microeconomics behind the process of technological capability accumulation and catching up in developing countries.

Suggested Citation

  • Mathew, Nanditha & Napolitano, Lorenzo & Rizzo, Ugo, 2020. "The role of domestic-firm knowledge in foreign R&D collaborations: Evidence from co-patenting in Indian firms," MERIT Working Papers 2020-044, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:unumer:2020044
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    More about this item

    Keywords

    Co-patenting; Foreign Collaboration; Absorptive Capacity; Capability accumulation; Corporate Performance;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital

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