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Outward FDI and Knowledge Flows: A Study of the Indian Automotive Sector

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  • Jaya Prakash Pradhan

    () (Sardar Patel Institute of Economic and Social Research)

  • Neelam Singh

    (Lady Shri Ram College, Delhi University)

Abstract

In recent years developing countries have emerged as significant participants in the OFDI (outward foreign direct investment), seeking strategic assets. Such asset exploiting-cum-augmenting OFDI involves potential two-way cross-border knowledge flows. This study examines several dimensions of OFDI in the Indian automotive industry – currently internationalizing rapidly in terms of OFDI. This study undertakes a quantitative analysis of the influence of OFDI activities on the in-house (domestic) R&D performance of the Indian automotive firms during 1988-2008, and finds expected favourable impact on the R&D intensity. The study concludes with suggestions to promote OFDI, particularly the strategic asset enhancing OFDI.(Please Puchase For Further Reading)

Suggested Citation

  • Jaya Prakash Pradhan & Neelam Singh, 2009. "Outward FDI and Knowledge Flows: A Study of the Indian Automotive Sector," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 1(1), pages 156-187, June.
    • Handle: RePEc:umk:journl:v:1:y:2009:i:1:p:156-187
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    References listed on IDEAS

    as
    1. Jaya Prakash Pradhan, "undated". "Growth of Indian Multinationals in the World Economy: Implications for Development," Working Papers 0704, Institute for Studies in Industrial Development (ISID).
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    Citations

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    Cited by:

    1. Pradhan, Jaya Prakash, 2011. "Regional heterogeneity and firms’ innovation: the role of regional factors in industrial R&D in India," MPRA Paper 28096, University Library of Munich, Germany.
    2. Morris, Sebastian & Jain, Palakh, 2013. "Empirical study on inter-country OFDI," MPRA Paper 56194, University Library of Munich, Germany.
    3. repec:eee:iburev:v:26:y:2017:i:5:p:839-854 is not listed on IDEAS
    4. Nunnenkamp, Peter & Sosa Andrés, Maximiliano & Vadlamannati, Krishna Chaitanya & Waldkirch, Andreas, 2012. "What drives India's outward FDI?," Kiel Working Papers 1800, Kiel Institute for the World Economy (IfW).
    5. Jaya Prakash Pradhan, 2010. "Strategic Asset-Seeking Activities of Emerging Multinationals: Perspectives of Foreign Acquisitions by Indian Pharmaceutical MNEs," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 1(2).
    6. Celeste Amorim Varum & Lucia Piscitello, 2011. "The Role of Public Policy in Strengthening Innovation through Internationalization," Chapters,in: Science and Innovation Policy for the New Knowledge Economy, chapter 7 Edward Elgar Publishing.
    7. Ronny Thomas & K. Narayanan, 2016. "Outward FDI, Exports and Technological Efforts: A Study of Indian Manufacturing Firms," Working Papers id:11383, eSocialSciences.
    8. Singh, Neelam, 2013. "Automotive Industry Response to its Global QMS Standard ISO/TS-16949," MPRA Paper 51342, University Library of Munich, Germany.
    9. repec:voj:journl:v:64:y:2017:i:4:p:401-421 is not listed on IDEAS
    10. Swati Virmani & Edmund Amann, 2015. "Is the evolution of India’s Outward FDI consistent with Dunning’s Investment Development Path sequence?," Working Papers 92160912, Lancaster University Management School, Economics Department.
    11. Cozza, C. & Rabellotti, R. & Sanfilippo, M., 2015. "The impact of outward FDI on the performance of Chinese firms," China Economic Review, Elsevier, vol. 36(C), pages 42-57.
    12. Tiwari, Rajnish, 2016. "India's potential as a lead market for frugal innovation and the role of socio-cultural context factors," Working Papers 94, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    13. Pradhan, Jaya Prakash & Singh, Neelam, 2010. "Group Affiliation and Location of Indian Firms’ Foreign Acquisitions," MPRA Paper 24018, University Library of Munich, Germany.
    14. Massimo G. Colombo & Luca Grilli & Lucia Piscitello & Cristina Rossi-Lamastra (ed.), 2011. "Science and Innovation Policy for the New Knowledge Economy," Books, Edward Elgar Publishing, number 13746.

    More about this item

    Keywords

    OFDI; knowledge flows; strategic asset-seeking FDI; R&D; automotives;

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • L62 - Industrial Organization - - Industry Studies: Manufacturing - - - Automobiles; Other Transportation Equipment; Related Parts and Equipment

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