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The Effects of R&D, Foreign Technology Purchase, and Domestic and International Spillovers on Productivity in Indian Firms

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  • Basant, Rakesh
  • Fikkert, Brian

Abstract

Using panel data on Indian firms from 1974-75 to 1981-82, the authors provide estimates of the impact on output of Indian firms' R&D expenditures, their technology purchases, and international and domestic R&D spillovers. The private returns to technology purchases are estimated to be high and statistically significant, while the private returns to firms' own R&D expenditures are somewhat lower and are often insignificant. There is evidence of both international and domestic R&D spillovers. The estimates permit estimation of total factor productivity growth in the period preceding India's industrial liberalization policies. Copyright 1996 by MIT Press.

Suggested Citation

  • Basant, Rakesh & Fikkert, Brian, 1996. "The Effects of R&D, Foreign Technology Purchase, and Domestic and International Spillovers on Productivity in Indian Firms," The Review of Economics and Statistics, MIT Press, vol. 78(2), pages 187-199, May.
  • Handle: RePEc:tpr:restat:v:78:y:1996:i:2:p:187-99
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