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R&D and patenting by firms in India in high- and medium-high-technology industries


  • Sunil Kumar Ambrammal
  • Ruchi Sharma


Innovation by a firm is vital in attaining a competitive edge over other firms in an industry, particularly in high- and medium-high-technology industries. The present study captures the innovative activity of Indian firms investing in research and development (R&D) and further on the output in the form of patenting simultaneously. The data cover firms of high-tech and medium-high-tech sectors during 1995-2010. We employ Heckman's two-step procedure to study the determinant of R&D equation and Hurdle count data model for patenting. The study finds that patent policy changes significantly influence R&D and patenting intensity. After the introduction of patent policy changes in India, foreign firms are relocating their R&D units into India and taking patent from Indian patent offices. However, the study does not find any direct evidence of R&D-oriented patenting activity in India.

Suggested Citation

  • Sunil Kumar Ambrammal & Ruchi Sharma, 2014. "R&D and patenting by firms in India in high- and medium-high-technology industries," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 12(2), pages 181-207, May.
  • Handle: RePEc:taf:jocebs:v:12:y:2014:i:2:p:181-207
    DOI: 10.1080/14765284.2014.900957

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    References listed on IDEAS

    1. Jose Miguel Benavente, 2006. "The role of research and innovation in promoting productivity in chile," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(4-5), pages 301-315.
    2. Sunil Kanwar, 2013. "Innovation, Efficiency, Productivity and Intellectual Property Rights: Evidence from a BRIC Economy," Working Papers id:5375, eSocialSciences.
    3. Kazuyuki Motohashi, 2006. "Licensing or Not Licensing?: Empirical Analysis on Strategic Use of Patent in Japanese Firms," Discussion papers 06021, Research Institute of Economy, Trade and Industry (RIETI).
    4. Wesley M. Cohen & Richard R. Nelson & John P. Walsh, 2000. "Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (or Not)," NBER Working Papers 7552, National Bureau of Economic Research, Inc.
    5. A. Colin Cameron & Pravin K. Trivedi, 2010. "Microeconometrics Using Stata, Revised Edition," Stata Press books, StataCorp LP, number musr, April.
    6. Michele Cincera, 2000. "Determinants of patenting activities in belgian manufacturing," ULB Institutional Repository 2013/915, ULB -- Universite Libre de Bruxelles.
    7. Subodh, Kandamuthan, 2002. "Market Concentration, Firm Size and Innovative Activity: A Firm-level Economic Analysis of Selected Indian Industries under Economic Liberalization," WIDER Working Paper Series 108, World Institute for Development Economic Research (UNU-WIDER).
    8. Basant, Rakesh & Mishra, Pulak, 2013. "Concentration and Other Determinants of Innovative Efforts in Indian Manufacturing Sector: A Dynamic Panel Data Analysis," IIMA Working Papers WP2013-02-01, Indian Institute of Management Ahmedabad, Research and Publication Department.
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