The role of domestic-firm knowledge in foreign R&D collaborations: Evidence from co-patenting in Indian firms

Nanditha Mathew (), Lorenzo Napolitano and Ugo Rizzo
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Nanditha Mathew: UNU-MERIT
Lorenzo Napolitano: Joint Research Center (JRC), European Commission

No 2020-044, MERIT Working Papers from United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT)

Abstract: In this paper we analyze the impact of foreign R&D collaborations on the performance of domestic firms and how the relationship is augmented by the pre-existing capabilities of the domestic firms. Using data on Indian firms, we study patterns of co-invention of Indian firms with foreign partners. The results from a causal mediation analysis confirm the crucial role played by domestic firms' absorptive capacity in enhancing the benefits from a foreign collaboration. The evidence we present in this work highlights the microeconomics behind the process of technological capability accumulation and catching up in developing countries.

Keywords: Co-patenting; Foreign Collaboration; Absorptive Capacity; Capability accumulation; Corporate Performance (search for similar items in EconPapers)
JEL-codes: D24 L20 O12 O32 O33 O34 (search for similar items in EconPapers)
Date: 2020-10-05
New Economics Papers: this item is included in nep-cfn, nep-cse, nep-ino, nep-int, nep-knm, nep-sbm and nep-tid
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Persistent link: https://EconPapers.repec.org/RePEc:unm:unumer:2020044

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