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Impact of patenting on firms' performance: an empirical investigation based on manufacturing firms in India

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  • Sunil Kumar Ambrammal
  • Ruchi Sharma

Abstract

The study aims to estimate the impact of R&D expenditure and patenting on the performance of firms using productivity, profitability and Tobin's q ratio as the performance indicators. The study uses firm-level data of 489 high- and medium-technology firms during the period of 2000-2010. We employ relatively a new source of data particularly in the context of India, firm-level patent granted, that has not been explored earlier. The study finds that firms patenting result in productivity improvement of firms, whereas R&D expenditure does not. The study further finds the evidence of positive impact of patenting on financial performance of firm with significant differences between foreign and domestic firms.

Suggested Citation

  • Sunil Kumar Ambrammal & Ruchi Sharma, 2016. "Impact of patenting on firms' performance: an empirical investigation based on manufacturing firms in India," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 25(1), pages 14-32, January.
  • Handle: RePEc:taf:ecinnt:v:25:y:2016:i:1:p:14-32
    DOI: 10.1080/10438599.2015.1043767
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    Cited by:

    1. Koray Aktas & Valeria Gattai, 2021. "Inward FDI, outward FDI, and firm-level performance in India," Working Papers 481, University of Milano-Bicocca, Department of Economics, revised Sep 2021.
    2. Baiju Pallayil & Sunil Kumar Ambrammal, 2022. "Size and performance of Indian manufacturing firms: new evidence from dynamic panel system GMM approach," SN Business & Economics, Springer, vol. 2(12), pages 1-22, December.
    3. Francesco Paolo Appio & Luigi de Luca & Robert Morgan & Antonella Martini, 2019. "Patent portfolio diversity and firm profitability: A question of specialization or diversification?," Post-Print halshs-02292360, HAL.
    4. Madan Dhanora & Ruchi Sharma & Walter G. Park, 2021. "Technological Innovations and Market Power: A Study of Indian Pharmaceutical Industry," Millennial Asia, , vol. 12(1), pages 5-34, April.
    5. Marco Taliento, 2017. "In the Midst of Crisis: Knowledge Assets and Operating Efficiency of Italian Listed Companies," International Journal of Business and Management, Canadian Center of Science and Education, vol. 12(7), pages 1-70, June.
    6. Dhanora, Madan & Sharma, Ruchi & Khachoo, Qayoom, 2018. "Non-linear impact of product and process innovations on market power: A theoretical and empirical investigation," Economic Modelling, Elsevier, vol. 70(C), pages 67-77.
    7. Ivus, Olena & Jose, Manu & Sharma, Ruchi, 2021. "R&D tax credit and innovation: Evidence from private firms in india," Research Policy, Elsevier, vol. 50(1).

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