Article: Assessment of R&D and its impact on Indian manufacturing industries Journal: International Journal of Computational Economics and Econometrics (IJCEE) 2018 Vol.8 No.2 pp.207 - 228 Abstract: An important source of productivity growth, technological change and hence increased welfare of a country is Research and Development (R&D). Thus, it is absolutely important to develop a country's R&D sector. However, developing countries have traditionally relied largely on import of technologies from developed countries, rather than domestic R&D for driving their technological change. India too has been no exception. But, like any other developing country, India too needs to make continuous investment either to adopt foreign technology or to develop its own capacities via R&D activities. Presently, India's R&D expenditure is merely 2.1% of total global expenditure. Against this backdrop, the present study computes elasticity of industry-level TPF with respect to R&D content of intermediates, both domestic and foreign, for industries in India. The results show that R&D stocks embodied in intermediates have contributed to productivity growth in these industries. Particularly, noteworthy is this elasticity for low-R&D industries, like, processed food, textile and wearing apparels, motor vehicles etc. Inderscience Publishers - linking academia, business and industry through research

Title: Assessment of R&D and its impact on Indian manufacturing industries

Authors: Chandrima Sikdar; Kakali Mukhopadhyay

Addresses: School of Business Management, Narsee Monjee Institute of Management Studies, V.L. Mehta Road, Ville Parle (W), Mumbai 400056, India ' Gokhale Institute of Politics and Economics, BMCC Road, Deccan Gymkhana, Pune 411004, Maharashtra, India; Department of Agricultural Economics, McGill University, Macdonald Campus, Quebec, H9X3V9 H9X3V9, Canada

Abstract: An important source of productivity growth, technological change and hence increased welfare of a country is Research and Development (R&D). Thus, it is absolutely important to develop a country's R&D sector. However, developing countries have traditionally relied largely on import of technologies from developed countries, rather than domestic R&D for driving their technological change. India too has been no exception. But, like any other developing country, India too needs to make continuous investment either to adopt foreign technology or to develop its own capacities via R&D activities. Presently, India's R&D expenditure is merely 2.1% of total global expenditure. Against this backdrop, the present study computes elasticity of industry-level TPF with respect to R&D content of intermediates, both domestic and foreign, for industries in India. The results show that R&D stocks embodied in intermediates have contributed to productivity growth in these industries. Particularly, noteworthy is this elasticity for low-R&D industries, like, processed food, textile and wearing apparels, motor vehicles etc.

Keywords: domestic R&D; foreign R&D; international integration; TPF; total factor productivity; India; industry; input-output; intermediate inputs.

DOI: 10.1504/IJCEE.2018.091042

International Journal of Computational Economics and Econometrics, 2018 Vol.8 No.2, pp.207 - 228

Received: 22 Oct 2015
Accepted: 24 Aug 2016
Published online: 09 Apr 2018 *

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Title: Assessment of R&D and its impact on Indian manufacturing industries

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