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Determinants of innovation for emerging market MNEs: evidence from the chemical industry in India

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  • Niti Bhasin
  • Harmanpreet Kaur

Abstract

Over a period of time, innovation has become the key for developing ownership advantages for emerging market MNEs. To examine the firm-level determinants of innovation for emerging market MNEs, this paper looks at the case of firms in the Indian chemicals and chemical products industry. The chemicals and chemical products industry is a high-technology and research-intensive industry and serves as a base for other industries. Hence, innovation in this sector can have spillover effects on other related industries as well. Employing panel data regression and using R%D (capital and current account) intensity and R%D (current account) intensity, empirical analysis has been conducted for the period 2009-2016. The results depict that young firms are more innovative. Growth, capital intensity, employee skills intensity, export intensity, import intensity and technology purchase intensity of firms significantly and positively affects innovation. In contrast, profit intensity negatively influences innovation.

Suggested Citation

  • Niti Bhasin & Harmanpreet Kaur, 2023. "Determinants of innovation for emerging market MNEs: evidence from the chemical industry in India," International Journal of Business Innovation and Research, Inderscience Enterprises Ltd, vol. 32(3), pages 343-368.
    • Handle: RePEc:ids:ijbire:v:32:y:2023:i:3:p:343-368
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