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R&D and Technology Imports: The Indian Experience in the Eighties

Dec 1999
Stanford King Center on Global Development Working Paper
46
This paper looks at in-house R&D and technology imports in India during the eighties. We examine the relationship between the two and study their impact output. Our results show that R&D and technology imports have had a significant effect on improving productivity and that local R&D and technology imports are on an average substitutes. Finally, our results indicate that the 80s saw some growth in TFP attributable to an increase in knowledge capital; however, we find that TFP growth due to exogenous causes was negative during this period.