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FDI, Technological Choices and Spillovers in Indian Manufacturing Industries

In: Globalization of Indian Industries

Author

Listed:
  • Maitri Ghosh

    (Bethune College)

  • Saikat Sinha Roy

    (Jadavpur University)

Abstract

With inflow of FDI and MNE operations in the Indian economy in the 1990s, the domestic firms had to face a very crucial issue of technology choice in the face of competition. On the one hand, technology could be imported in both embodied and disembodied form, while on the other hand, thrust could be given to develop local R&D. Again, there could also be a possibility of combining both. This chapter tries to analyse the factors influencing the firms’ technological choices across high technology, medium-high technology, medium-low technology and low-technology industries in the post reforms era. In this process, the role of the ownership of firms and technological spillovers is taken into account. A logit framework is constructed to empirically explore the technology choice determinants. Results suggest that foreign ownership and technological spillovers have significant effect on the technology choices of most Indian manufacturing industries. Dependence on imported foreign technical know-how is also evident.

Suggested Citation

  • Maitri Ghosh & Saikat Sinha Roy, 2016. "FDI, Technological Choices and Spillovers in Indian Manufacturing Industries," India Studies in Business and Economics, in: Filip De Beule & K. Narayanan (ed.), Globalization of Indian Industries, edition 1, chapter 0, pages 171-195, Springer.
  • Handle: RePEc:spr:isbchp:978-981-10-0083-6_8
    DOI: 10.1007/978-981-10-0083-6_8
    as

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