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

  • Maitri GhoshEmail author
  • Rudra Prosad Roy
Chapter
Part of the India Studies in Business and Economics book series (ISBE)

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.

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© Springer Nature Singapore Pte Ltd. 2018

Authors and Affiliations

  1. 1.Bethune CollegeKolkataIndia
  2. 2.Department of EconomicsJadavpur UniversityKolkataIndia

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