R&D, TECHNOLOGY TRANSFER AND PRODUCTIVITY IN THE INDIAN PHARMACEUTICAL INDUSTRY

Chandan Sharma

International Journal of Innovation Management (ijim), 2016, vol. 20, issue 01, 1-24

Abstract: Utilising a rich firm-level data on Indian pharmaceutical manufacturing, this paper attempts to investigate effects of in-house research and development (R&D) and technology transfer on firms’ productivity performance for the period 1994–2010. We test the inter-linkage in two frameworks: Growth accounting and production function. Surprisingly, results of the growth accounting analysis suggest that R&D intensity has negligible impact on total factor productivity (TFP) growth of firms. Under the production function framework, results are also not very different. Nevertheless, our estimation results also establish that in the case of foreign firms, R&D has a sizable positive impact on productivity. Furthermore, under the both frameworks, we find very encouraging results for technology transfer. Our analyses also indicate that technological spillover is a crucial source of accessing technology and enhancing productivity of pharmaceutical firms in India.

Keywords: Productivity; R&D; technology transfer; technology spillover; Indian pharmaceutical (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (4)

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DOI: 10.1142/S1363919616500109

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