Technology spillovers and productivity: analysis of the Indian manufacturing sector

Swati Mehta

Innovation and Development, 2013, vol. 3, issue 1, 55-69

Abstract: Endogenous growth theories postulate a positive impact of 'technology spillovers' on productivity that transverse the economic policies, especially of the developing countries towards greater integration. The present paper attempts to examine this relationship by taking the case of Indian manufacturing industries. A panel regression model was framed to examine the impact of indigenous R&D and technology spillovers on productivity. The analysis, however did not find 'technology spillovers' to be an important determinant of industrial productivity, irrespective of 'technology gap' or 'productivity gap' within the sector. On the contrary, the investment in indigenous R&D was also found to be minimal, emphasizing an immediate attention to strengthen the source of productivity growth in the sector.

Date: 2013
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DOI: 10.1080/2157930X.2012.760900

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