Deregulation, Technology Imports and In-House R&D Efforts: An Analysis of the Indian Experience

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Abstrakt

This paper analyses the effects of the deregulation policy introduced in India in the mid-1980s on the relationship between technology imports and in-house R&D efforts. Using appropriate statistical techniques, it examines the interactions between policy regime, economic environment and the determinants of inter-industry variation in technology imports in Indian manufacturing. In doing so, it introduces R&D efforts as one of the main determinants. Literature suggests that there is simultaneity in the relationship between technology imports and R&D efforts. To tackle this problem, lagged R&D expenditure intensity is adopted as a proxy for in-house R&D efforts. The empirical results reveal that technology imports were only weakly related with the past in-house R&D efforts in the protective regime. Deregulation promoted complementarity between technology imports and R&D efforts significantly. The results also suggest that after deregulation, the impact of product differentiation, demand conditions and technology-related factors increased significantly in determining the inter-industry patterns of technology imports. Thus, unlike in a regulated regime where technology imports are viewed important for filling gaps in domestic technological capabilities, in a deregulated regime technology upgradation seems to be the major role of technology imports.
OriginalsprogDansk
TidsskriftResearch Policy
Vol/bind29
Udgave nummer9
Sider (fra-til)1081-1093
ISSN0048-7333
DOI
StatusUdgivet - dec. 2000
Udgivet eksterntJa

Emneord

  • Deregulation
  • Technology Imports
  • R&D

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