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FDI, Technology Imports and R&D in Indian Manufacturing: Revisited

In: Globalisation of Technology

Author

Listed:
  • Maitri Ghosh

    (Bethune College)

  • Rudra Prosad Roy

    (Jadavpur University)

Abstract

This paper investigates into the factors determining firm-level R&D intensity in Indian manufacturing during post-reforms. In doing so, the differential impact of productivity for Multinational Enterprises vis-a-vis the domestic firms on R&D intensity has been studied. This paper further investigates into the role of imported technology in determining innovative activities of firms. System GMM estimation with firm-level data from 2001 to 2010 suggests that foreign ownership plays a key role in determining firm-level R&D in Indian manufacturing. Interestingly, highly productive foreign firms invest more in R&D activities as against their local counterparts in India. Imported foreign technology significantly reduces R&D intensity of firms which is indicative of the fact that imported foreign technology acts as a substitute of local innovative activities in Indian manufacturing during post-reforms.

Suggested Citation

  • Maitri Ghosh & Rudra Prosad Roy, 2018. "FDI, Technology Imports and R&D in Indian Manufacturing: Revisited," India Studies in Business and Economics, in: N.S. Siddharthan & K. Narayanan (ed.), Globalisation of Technology, chapter 0, pages 127-149, Springer.
    • Handle: RePEc:spr:isbchp:978-981-10-5424-2_6
    DOI: 10.1007/978-981-10-5424-2_6
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    Cited by:

    1. Smallbone, David & Saridakis, George & Abubakar, Yazid Abdullahi, 2022. "Internationalisation as a stimulus for SME innovation in developing economies: Comparing SMEs in factor-driven and efficiency-driven economies," Journal of Business Research, Elsevier, vol. 144(C), pages 1305-1319.
    2. T. Joseph Musandiwa & Collins C. Ngwakwe, 2020. "Effect of Technology Adoption on New Product Innovation," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 18(3 (Fall)), pages 177-194.

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