FDI, Technology Imports and R&D in Indian Manufacturing: Revisited

Maitri Ghosh () and Rudra Prosad Roy ()
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Maitri Ghosh: Bethune College
Rudra Prosad Roy: Jadavpur University

Chapter Chapter 6 in Globalisation of Technology, 2018, pp 127-149 from Springer

Abstract: Abstract This paper investigates into the factors determining firm-level R&D intensity in Indian manufacturing during post-reforms. In doing so, the differential impact of productivity for Multinational Enterprises vis-a-vis the domestic firms on R&D intensity has been studied. This paper further investigates into the role of imported technology in determining innovative activities of firms. System GMM estimation with firm-level data from 2001 to 2010 suggests that foreign ownership plays a key role in determining firm-level R&D in Indian manufacturing. Interestingly, highly productive foreign firms invest more in R&D activities as against their local counterparts in India. Imported foreign technology significantly reduces R&D intensity of firms which is indicative of the fact that imported foreign technology acts as a substitute of local innovative activities in Indian manufacturing during post-reforms.

Keywords: Indian Manufacturing; Foreign Technology Imports; Multinational Enterprises (MNEs); Local Innovative Activities; Host Economy (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:spr:isbchp:978-981-10-5424-2_6

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DOI: 10.1007/978-981-10-5424-2_6

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