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

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  • Sunil Kumar Ambrammal
  • Ruchi Sharma

Abstract

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

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    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. 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).
    7. 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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