DOES INNOVATION ENHANCE PRODUCTIVITY IN CASE OF SELECTED INDIAN MANUFACTURING FIRMS?

Seenaiah Kale and Badri Rath

The Singapore Economic Review (SER), 2019, vol. 64, issue 05, 1225-1250

Abstract: This study examines the effects of innovation on productivity of Indian Manufacturing firms. Despite the voluminous literature on this area, the demanding line, i.e., various types of innovation effects on productivity growth, received little attention particularly in the Indian context; hence, our study fills the gap by employing firm-level data from Hyderabad and Bengaluru cities of India from 2011 to 2013. The estimated results confirm the significant impact of innovation on productivity upsurge in Indian manufacturing firms. Further, we investigate the spatial aspects of innovation considering the two cities separately. However, such city-based analysis does not produce any different findings.

Keywords: Innovation; total factor productivity; Leveinsohn–Petrin approach; panel data model; Indian manufacturing (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (3)

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DOI: 10.1142/S0217590818500340

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