 R & D Behaviour of Indian Firms: A Stochastic Control ModelLakshmi Raut () Indian Economic Review, 1988, vol. 23, issue 2, 207-229 Abstract: This paper develops a dynamic stochastic model to explain the observed pattern of R&D input choices of Indian private firms in terms of firm size, market structure, and science base. The inputs to the production of technological knowledge are taken to be in house R&D activities, and purchase of technology and know-how from foreign and domestic suppliers. The model is estimated with firm level data from light, petro-chemical, and heavy industries. In all three industries larger firms tend to substitute domestic for foreign purchase of technology and technical knowhow; and in heavy industry, larger firms also do more in-house R&D. Monopoly power of a firm in the light industry has no significant effect on its R&D activities; in the heavy industry, higher monopoly power to a firm reduces its purchase of technology, without affecting other R&D activities; in the petro chemical industry, higher monopoly power to a firm reduces its purchase of technology, but this but this reduction is partially offset by an increase in in-house R&D expenditures. Date: 1988 There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:dse:indecr:v:23:y:1988:i:2:p:207-229 Ordering information: This journal article can be ordered from Access Statistics for this article Indian Economic Review is currently edited by Pami Dua (Editor) & Ram Singh (Associate Editor) and Sunil Kanwar More articles in Indian Economic Review from Department of Economics, Delhi School of Economics University of Delhi, Delhi 110 007. Contact information at EDIRC. |
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