The Review of Economics and Statistics Vol. 71 No. 4 1989
Technology Production and Technology Purchase in Indian Industry: An Econometric Analysis
Abstract
Industrial firms in low income countries face somewhat different incentives for investment in R&D than do firms in industrialized countries.In particular, they are at a competitive disadvantage with respect to selling technology upstream in the industrialized countries.Technology supplied from upstream industrial firms provides them with a strong incentive to purchase technology in various forms as opposed to engaging in their own R&D.In this study an econometric analysis of the decisions of Indian firms to invest in their own R&D and to purchase technology (through licensing agreements) is undertaken.These decisions are treated as being jointly determined by characteristics of Indian industries, Indian prices, and the supply of purchasable foreign technology.The study finds that industrial structure, firm size, and public and private ownership influence the mix of own R&D and technology purchase.The pool of purchasable foreign technology induces both increased adaptive R&D and technology purchase by Indian firms.-.
- DOI
- 10.2307/1928113
- Volume
- 71
- Issue
- 4
- Pages
- 687
- Sources
- openalex crossref