Geographical concentration of knowledge and technology-intensive industries in India: empirical evidence from establishment-level analysis

Sugam Agarwal () and Smruti Ranjan Behera ()
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Sugam Agarwal: Indian Institute of Technology Ropar
Smruti Ranjan Behera: Indian Institute of Technology Ropar

Indian Economic Review, 2022, vol. 57, issue 2, No 12, 513-552

Abstract: Abstract This paper investigates the geographical concentration of 35 knowledge and technology-intensive industries (KTI), covering 0.43 million establishments at a district level using Economic Census (2013) data. Empirical results exhibit that the spatial dependence for high and medium–high R&D-intensive industries prevails across various districts of India. Specifically, results demonstrate that the magnitude of the geographical concentration effect differs across high and medium–high R&D-intensive industries and the high-high employment cluster, mainly perceptible in Maharashtra and Telangana states in India. Moreover, the results validate that the substantial evidence of employment concentration of KTI industries has been confined to only a few specific districts of different states in India. Further, we estimate a regression line between the unweighted and weighted Ellison–Glaeser index for a more robust analysis and to capture the neighborhood effect. Empirical results exhibit that for specific KTI industries, the estimated coefficients between these indices exceed one, indicating substantial evidence of the neighborhood effect, which facilitates the geographical concentration of a few KTI industries specific to certain locations in India. Empirical results from this study emerge specific policies to emphasize the districts to increase the employment opportunities where the KTI industry has a higher employment concentration. Further, emphasis should be given to the KTI industries to enhance their value-addition capability for various products and services.

Keywords: Districts; Geographical concentration; R&D-intensive industries; Technology intensity (search for similar items in EconPapers)
JEL-codes: O32 R10 R12 (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/s41775-022-00145-w

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