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R&D and patenting by firms in India in high- and medium-high-technology industries

Sunil Ambrammal and Ruchi Sharma

Journal of Chinese Economic and Business Studies, 2014, vol. 12, issue 2, 181-207

Abstract: Innovation by a firm is vital in attaining a competitive edge over other firms in an industry, particularly in high- and medium-high-technology industries. The present study captures the innovative activity of Indian firms investing in research and development (R&D) and further on the output in the form of patenting simultaneously. The data cover firms of high-tech and medium-high-tech sectors during 1995-2010. We employ Heckman's two-step procedure to study the determinant of R&D equation and Hurdle count data model for patenting. The study finds that patent policy changes significantly influence R&D and patenting intensity. After the introduction of patent policy changes in India, foreign firms are relocating their R&D units into India and taking patent from Indian patent offices. However, the study does not find any direct evidence of R&D-oriented patenting activity in India.

Date: 2014
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DOI: 10.1080/14765284.2014.900957

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Journal of Chinese Economic and Business Studies is currently edited by Professor Xiaming Liu

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