R&D and the overseas earnings of Indian firms |
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| Affiliation: | 1. State Key Laboratory of Metal Matrix Composites, Shanghai Jiao Tong University, Shanghai 200240, People’s Republic of China;2. Key Laboratory of Advanced Ceramics and Machining Technology and Tianjin Key Laboratory of Composite and Functional Materials, Tianjin University, Tianjin 300073, People’s Republic of China;1. Département de Mathématiques, Institut Supérieur des Mathématiques Appliquées et d׳Informatique de Kairouan, Av. Assad Ibn El Fourat, 3100 Kairouan, Tunisia;2. CEREMADE, Université Paris Dauphine, Pl. du Maréchal De Lattre De Tassigny, 75775 Paris Cedex 16, France;3. Institut Universitaire de France, France;1. ICD-LOSI, UMR CNRS 6281, Université de Technologie de Troyes 2, rue Marie Curie, CS 42060, 10004 Troyes CEDEX, France;2. LIMOS-UBP, UMR CNRS 6158, Université Blaise Pascal, Campus des Cézeaux, BP 10125, 63173 Aubière CEDEX, France |
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| Abstract: | This article examines the impact of undertaking R&D, a measure of the enhancement of dynamic capabilities, on firms' overseas earnings patterns, for a panel of several thousand Indian firms, for the period from 1991–92 to 2005–06. The results show that undertaking R&D spending is associated with a significant rise in firms' average overseas earnings levels. These results point to the need for materially enhancing the very low levels of R&D undertaken by firms in India. |
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| Keywords: | Dynamic capabilities Indian economy Overseas expansion Technology spending R&D |
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