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R&D, Technology Transfer And Productivity In The Indian Pharmaceutical Industry

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  • CHANDAN SHARMA

    (Indian Institute of Management, Lucknow, India)

Abstract

Utilising a rich firm-level data on Indian pharmaceutical manufacturing, this paper attempts to investigate effects of in-house research and development (R&D) and technology transfer on firms’ productivity performance for the period 1994–2010. We test the inter-linkage in two frameworks: Growth accounting and production function. Surprisingly, results of the growth accounting analysis suggest that R&D intensity has negligible impact on total factor productivity (TFP) growth of firms. Under the production function framework, results are also not very different. Nevertheless, our estimation results also establish that in the case of foreign firms, R&D has a sizable positive impact on productivity. Furthermore, under the both frameworks, we find very encouraging results for technology transfer. Our analyses also indicate that technological spillover is a crucial source of accessing technology and enhancing productivity of pharmaceutical firms in India.

Suggested Citation

  • Chandan Sharma, 2016. "R&D, Technology Transfer And Productivity In The Indian Pharmaceutical Industry," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(01), pages 1-24, January.
    • Handle: RePEc:wsi:ijimxx:v:20:y:2016:i:01:n:s1363919616500109
    DOI: 10.1142/S1363919616500109
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    Cited by:

    1. Sharma Chandan, 2017. "Do Firms Learn more from Exporting to the Developed Markets? Empirical Evidence of Indian Firms," Global Economy Journal, De Gruyter, vol. 17(1), pages 1-11, March.
    2. Arup Mitra & Chandan Sharma, 2020. "Employment and TFP Impact of Technologies in the Developing World: Domestic versus Imported Expertise," IEG Working Papers 410, Institute of Economic Growth.
    3. Varun Mahajan & D. K. Nauriyal & S. P. Singh, 2020. "Domestic market competitiveness of Indian drug and pharmaceutical industry," Review of Managerial Science, Springer, vol. 14(3), pages 519-559, June.
    4. Sharma, Chandan, 2018. "Exporting, access of foreign technology, and firms’ performance: Searching the link in Indian manufacturing," The Quarterly Review of Economics and Finance, Elsevier, vol. 68(C), pages 46-62.

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