Knowledge spillover in Indian automobile industry: the process and the coverage

Uchikawa Shuji

No 303, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: In India, as the production of passenger cars increased, many local small and medium enterprises (SMEs) entered the parts and components manufacturing sector. The sources of knowledge for large enterprises and SMEs are different. Naturally, spillover effects among large enterprises and between large enterprises and SMEs are different. This paper focuses on knowledge spillover among large enterprises and from large enterprises to SMEs. Subcontractor can absorb relation-specific skills through repeated interaction with parent company. The results of field survey emphasizes that relation-specific skills are a determinant factor of spillover effects from assemblers and large auto component manufacturers to SMEs. Econometric analysis shows that spillover effects among medium and large automobile units and from medium and large automobile units to small units went beyond boundary of cluster.

Keywords: India; Automobile industry; Industrial technology; Automobile; Technology; Spillover; Small and medium enterprises (search for similar items in EconPapers)
JEL-codes: L62 O33 O53 (search for similar items in EconPapers)
Date: 2011-08-01
New Economics Papers: this item is included in nep-cse and nep-knm
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Published in IDE Discussion Paper = IDE Discussion Paper, No. 303. 2011-08-01

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