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R&D Strategy of Small and Medium Enterprises in India

Author

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  • Jaya Prakash Pradhan

Abstract

The liberalization of economic policies in the last two decades and intensifying market competition tend to be a cause of policy concern for the survival of SMEs in emerging economies like India. These SMEs account for the largest chunk of industrial units and employment in the national economy. Yet, most of them are competing with deeply inadequate resources, especially by means of weak technological capabilities. The present study has provided not only preliminary estimates on SME R&D investments in Indian manufacturing and their broad trends and patterns, but also contributed to the understanding of factors driving the SME in-house R&D activities. It shows that Indian SMEs continue to be vulnerable among all firms as they have the lowest incidence of doing in-house R&D and their R&D intensities have fallen in the last decade. Based on the results from three-step Censored Quantile Regression, this study has suggested a set of useful policy implications for enhancing SME R&D.

Suggested Citation

  • Jaya Prakash Pradhan, 2010. "R&D Strategy of Small and Medium Enterprises in India," EERI Research Paper Series EERI_RP_2010_14, Economics and Econometrics Research Institute (EERI), Brussels.
  • Handle: RePEc:eei:rpaper:eeri_rp_2010_14
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    File URL: http://www.eeri.eu/documents/wp/EERI_RP_2010_14.pdf
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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.

    More about this item

    Keywords

    SMEs; R&D; Business Groups; Foreign Firms.;

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business

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