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R&D In Indian Manufacturing Firms: Effects Of Age, Size & Technology Transfer

Author

Listed:
  • RUPIKA KHANNA

    (Economics and Public Policy Area, Indian Institute of Management Rohtak, India)

  • ABHAY PANT

    (Economics and Public Policy Area, Indian Institute of Management Rohtak, India)

  • GAURAV KUMAR

    (Financial Engineering Area, School of Management and Entrepreneurship, IIT Jodhpur, India)

Abstract

Using firm-level data from 7165 firms from Indian manufacturing, this paper explores the effects of firm age and size on its inclination to invest in research and development (R&D). The paper addresses the inadequately answered question on the choice between in-house R&D and technology purchase from foreign firms. To the best of author’s knowledge, this is the first study to examine the impact of age, size and technology transfer on firm’s inclination to invest in R&D for the manufacturing sector in India. Our results suggest that young firms are more likely to invest in R&D. A firm’s exports further increase its propensity towards R&D. Contrary to the previous results, we show that young and small firms possibly use in-house R&D as a complementary input with purchased foreign technology. Thereafter, policy prescriptions are drawn.

Suggested Citation

  • Rupika Khanna & Abhay Pant & Gaurav Kumar, 2024. "R&D In Indian Manufacturing Firms: Effects Of Age, Size & Technology Transfer," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 69(07), pages 2083-2096, December.
    • Handle: RePEc:wsi:serxxx:v:69:y:2024:i:07:n:s0217590821500065
    DOI: 10.1142/S0217590821500065
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    More about this item

    Keywords

    Age; size; technology transfer; research and development; India; manufacturing firms;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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