nach oben

Erschienen in:

2016 | OriginalPaper | Buchkapitel

8. FDI, Technological Choices and Spillovers in Indian Manufacturing Industries

verfasst von : Maitri Ghosh, Saikat Sinha Roy

Erschienen in: Globalization of Indian Industries

Verlag: Springer Singapore

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config

KI-gestützte Suche

Aus

Abstract

With inflow of FDI and MNE operations in the Indian economy in the 1990s, the domestic firms had to face a very crucial issue of technology choice in the face of competition. On the one hand, technology could be imported in both embodied and disembodied form, while on the other hand, thrust could be given to develop local R&D. Again, there could also be a possibility of combining both. This chapter tries to analyse the factors influencing the firms’ technological choices across high technology, medium-high technology, medium-low technology and low-technology industries in the post reforms era. In this process, the role of the ownership of firms and technological spillovers is taken into account. A logit framework is constructed to empirically explore the technology choice determinants. Results suggest that foreign ownership and technological spillovers have significant effect on the technology choices of most Indian manufacturing industries. Dependence on imported foreign technical know-how is also evident.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Technik"

Online-Abonnement

Mit Springer Professional "Technik" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 390 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Maschinenbau + Werkstoffe

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Vorheriges Kapitel Role of Technological and Knowledge Resources in a Firm’s Decision to Export: The Case of Inward Oriented Indian Industries

Nächstes Kapitel Does Feed-in-Tariff Explain Foreign Investment in Wind Energy Sector in India?

Nur mit Berechtigung zugänglich

The classification of manufacturing industries into categories is based on R&D intensities (ISIC Revision 3). However, we have considered chemicals as high technology industry as it is inclusive of drug and pharmaceuticals.

We are not dealing with technological licenses in this analysis due to data unavailability.

Aggarwal A (2001) Technology polices and technological capabilities in industry: a comparative analysis of India and Korea. Working Paper No. 68, Indian Council for Research in International Economic Relations, New Delhi

Aitken B, Harrison A (1999) Do domestic firms benefit from direct foreign investment? Evidence from Venezuela. Am Econ Rev 89:605–618CrossRef

Basant R (1993) R&D, foreign technology purchase and technology spillovers in Indian Industry: some explorations. UNU INTECH (Maastricht), Yale University

Basant R (1997) Technology strategies of large enterprises in indian industry: some explorations. World Dev 25:1683–1700CrossRef

Basant R, Fikkert B (1996) The effects of R&D, foreign technology purchase and domestic and international spillovers on productivity in Indian Firms. Rev Econ Statis 78:187–199CrossRef

Birkinshaw JM, Morrison AJ (1995) Configuration of strategy and structure in subsidiaries of multinational corporations. J Int Bus Stud 26(4): 729–750

Blomstrom M (1986) Foreign investment and productive efficiency: the case of Mexico. J Indus Econ 15:97–110CrossRef

Blomstrom M, Perssion H (1983) Foreign investment and spillover efficiency in an underdeveloped economy: evidence from the Mexican manufacturing industry. World Dev 11:493–501CrossRef

Blomstrom M, Wolff EN (1989) Multinational corporations and productivity convergence in Mexico, Working papers, Starr Centre for Applied Economics, New York University

Blomstrom M, Kokko A, Zejan M (1994) Host country competition, labour skills and technology transfer by multinationals. Rev World Econ Springer 130:521–533

Blumenthal T (1979) A note on the relationship between domestic research and development and imports of technology. Econ Dev Cult Change 27:303–306CrossRef

Borensztein E, De Gregorio, Lee J (1998) How does foreign direct investment affect economic growth? J Int Econ 45:115–135

Branstetter L (2006) Is foreign direct investment a channel of knowledge spillovers? Evidence from Japan’s FDI in the United States. J Int Econ 68:325–344CrossRef

Bwalya SM (2006) Foreign direct investment and technology spillovers: evidence from panel data analysis of manufacturing firms in Zambia. J Dev Econ 81:514–526CrossRef

Cantwell J (1989) Technological innovation and multinational corporations. In: Carriere (eds) Industrialization and the State in Latin America, Amsterdam CEDLA, Incidentele Publicaties, Oxford, Basil Blackwell

Caves RE (1974) Multinational firms competition and productivity in host country markets. Economica 41:176–193CrossRef

Chang SJ, Chung J, Dean X (2007) FDI and technology spillovers in China. Centre for Economic Institution Working Paper Series, No. 2007-7

Chuang YC, Lin CM (1999) Foreign direct investment R&D and spillover efficiency from Taiwan’s manufacturing firms. J Dev Stud 35:110–117CrossRef

Das S (1987) Externalities and technology transfer through multinational corporation: a theoretical analysis. J Int Econ 22:171–182CrossRef

Dasgupta K (2012) Learning and knowledge diffusion in a global economy. J Int Econ 87:323–336CrossRef

Dunning, JH (2000) The eclectic paradigm as an envelope for economic and business theories of MNE activity. Int Bus Rev 9(1):163–190

Evenson RE, Joseph KJ (1999) Foreign technology licensing in indian industry: an econometric analysis of the choice of partners, terms of contract and the effect on licensees’ performance. Econ Polit Weekly 34:1801–1809

Fan CS, Hu Y (2007) Foreign direct investment and indigenous technological efforts: evidence from China. Econ Lett 96:253–258CrossRef

Feinberg SE, Majumdar SK (2001) Technological Spillovers from foreign direct investment in the Indian pharmaceutical industry. J Int Bus School 32:421–437CrossRef

Findlay R (1978) Some aspects of technology transfer and direct foreign investment. Am Econ Rev 68(2):275–279

Ghosh M, Sinha Roy S (2013) FDI, firm heterogeneity and exports: an examination on evidence in India. Working Paper, 05–13, Centre for Advanced Studies, Jadavpur University

Globerman S (1979) Foreign direct investment and ‘spillover’ efficiency benefits in Canadian manufacturing industries. Can J Econ 12:42–56CrossRef

Globerman S, Meredith L (1984) The foreign ownership-innovation nexus in Canada. Columbia J World Bus 4:53–63

Haddad M, Harrison A (1991) Are there positive spillovers from foreign direct investment?. Harvard University and the World Bank, Evidence from Panel data for Morocco

Hymer SH (1976) The international operations of national firms: a study of foreign direct investment. MIT Press, Cambridge

Javorcik BS (2012) Does foreign direct investment increase the productivity of domestic firms? In search of spillovers through backward linkages. Am Econ Rev 94:605–627CrossRef

Kabiraj T, Marjit S (2003) Protecting consumers through protection: the role of tariff induced technology transfer. Eur Econ Rev 47:113–124CrossRef

Kathuria V (2000) Productivity spillovers from technology transfer to indian manufacturing firms. J Int Dev 12:343–369CrossRef

Kathuria V (2001) Foreign firms technology transfer and knowledge spillovers to indian manufacturing firms: a stochastic frontier analysis. Appl Econ 33(5):625–642CrossRef

Kathuria V (2008) The impact of FDI inflows on R&D investment by medium and high tech firms in India in the post reforms period. Trans Corp 17(2):45–66

Kathuria V, Das S (2005) Impact of FDI on R&D strategies of firms in the post -1991 era. IIMB Manage Rev 17–28

Katrak H (1985) Imported technology, enterprise size and R&D in a newly industrialising country: the Indian experience. Oxford Bull Econ Statis 47:213–230CrossRef

Katrak H (1997) Developing countries’ imports of technology, in-house technological capabilities and efforts: an analysis of the Indian experience. J Dev Econ 53:67–83CrossRef

Koizumi T, Kopecky K (1977) Economic growth capital movement and the international transfer of technical knowledge. J Int Econ 7:45–65CrossRef

Kokko A (1994) Technology, market characteristics and spillovers. J Dev Econ 43:279–293CrossRef

Krugman P (1979) A model of innovation technology transfer and the world distribution of income. J Polit Econ 87(2):253–266CrossRef

Kumar N (1987) Technology imports and local research and development in Indian manufacturing. Dev Econ 220–233

Kumar N (1995) Industrialisation, liberalisation and two way flows of foreign direct investments case of India. Econ Polit Weekly 30:3228–3237

Kumar N, Saqib M (1996) Firm size, opportunities for adaptation and in-house R&D activity in developing countries: the case of Indian manufacturing. Res Policy 25:712–722CrossRef

Kumar N, Aggarwal A (2005) Liberalisation, outward orientation and in-house R&D activity of multinational and local firms: a quantitative exploration for indian manufacturing. Res Policy 34:441–460CrossRef

Lall S (1979) The indirect employment effects of multinational enterprises in developing countries. Employment effects of multinational enterprises working paper No. 3, International Labour Office, Geneva

Lall S (1983) Determinants of R&D in a LDC: The Indian engineering industry. Econ Lett 13:379–383CrossRef

Lall S (1993) Third world transitionals and their impact on home countries. United Nations Centre on Transnational Corporations, New York

Lee J (1996) Technology imports and R&D efforts of Korean manufacturing firms. J Dev Econ 50:197–210CrossRef

Liu Z (2008) Foreign direct investment and technology spillovers: theory and evidence. J Dev Econ 85:176–193CrossRef

Marin A, Sasidharan S (2010) Heterogeneous MNC subsidiaries and technological spillovers: explaining positive and negative effects in India. Res Policy 39:1227–1241CrossRef

Mello D (1997) Foreign direct investment in developing countries and growth: a selective survey. J Dev Stud 34:1–34MathSciNetCrossRef

Nelson RR (2004) The challenge of building an effective innovation system for catch-up. Oxf Dev Stud 32:365–374CrossRef

Okamoto Y (1999) Multinationals production efficiency, and spillover effects: the case of the US auto parts industry. Weltwirtschaftliches Archiv 135:241–260CrossRef

Pearce RD (1999) Decentralized R&D and strategic competitiveness: globalised approaches to generation and use of technology in multinational enterprises (MNEs). Res Policy 28:157–178CrossRef

Pillai PM, Srinivasan J (1987) Age and productivity of machine tools in India. Econ Politic Weekly, 22(35): M95–M100

Posner MV (1961) International trade and technical change. Oxford Econ Papers 13:323–341

Pradhan JP, Puttaswamaiah S (2005) Trends and patterns of technology acquisition in Indian organised manufacturing: an inter-industry exploration. Working Paper no 157, Gujarat Institute of Development Research

Ronstadt R (1977) Research and development abroad by US multinationals. Praeger, New York

Sasidharan S, Kathuria V (2011) Foreign direct investment and R&D: substitutes or complements- a case of indian manufacturing after 1991 reforms. World Dev 39:1226–1239CrossRef

Toimura E (2003) Firm-level relationship between technological capability and foreign direct investment. Discussion Paper Series, No. 138, Research Institute for Economics and Business Administration, Kobe University

Tsou MW, Liu JT (1994) The spillover effects of foreign direct investment: empirical evidence from taiwan manufacturing industries. Taiwan Econ Rev 25:155–181

Veugelers R, Van den Houte P (1990) Domestic R&D in the presence of multinational enterprises. Int J Indus Organ 8:1–15CrossRef

Vernon R (1966) International investment and international trade in the product cycle. Q J Econ 80(2):190–207CrossRef

Vernon R (1974) The location of economic activity. In: Dunning J (ed) Economic analysis and the multinational enterprises. George Allen and Unwin, London, pp 89–114

Vernon R (2000) In the hurricane’s eye: The troubles prospects of multinational enterprises. Cambridge: Harvard University Press

Wang JY, Blomstrom M (1992) Foreign investment and technology transfer: a simple model. Eur Econ Rev 36(1):137–155CrossRef

Wooldridge JM (2007) Introductory econometrics: a modern approach. South Western, Thomson

Yao S, Wei K (2007) Economic growth in the presence of FDI: the perspective of newly industrialising economies. J Compar Econ 35(1):211–234MathSciNetCrossRef

Titel: FDI, Technological Choices and Spillovers in Indian Manufacturing Industries
verfasst von: Maitri Ghosh
Saikat Sinha Roy
Verlag: Springer Singapore
Buch: Globalization of Indian Industries
Print ISBN: 978-981-10-0082-9

Electronic ISBN: 978-981-10-0083-6

Copyright-Jahr: 2016
DOI: https://doi.org/10.1007/978-981-10-0083-6_8

Springer Professional

Abstract

Bitte loggen Sie sich ein, um Zugang zu Ihrer Lizenz zu erhalten.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Technik"

Springer Professional "Wirtschaft"