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Does the Presence of Foreign Firms Help Technological Upgradation in Indian Firms?

By: Contributor(s): Material type: TextTextPublication details: Economic and Political Weekly; 2024Description: 80-88ISSN:
  • 00129976
Subject(s): Online resources: Summary: Building on the previous work that used citation data to track technology spillovers, this paper proposes three channels of knowledge spillovers among domestic and foreign firms. We argue that most gains in productivity are attributed to the presence of foreign firms through subsidiaries. To track citations, we employ data from firms patenting at the United States Patent and Trademark Office. We trace the knowledge spillovers among the domestic and foreign firms (with or without subsidiaries in India). The results reveal that most citations are made among foreign firms only. However, though fewer, the citations made to foreign firms that have a subsidiary in India contribute to productivity gains of Indian firms.
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Article Index Article Index Dr VKRV Rao Library Vol. 59, No. 34 Not for loan AI528

Building on the previous work that used citation data to track technology spillovers, this paper proposes three channels of knowledge spillovers among domestic and foreign firms. We argue that most gains in productivity are attributed to the presence of foreign firms through subsidiaries. To track citations, we employ data from firms patenting at the United States Patent and Trademark Office. We trace the knowledge spillovers among the domestic and foreign firms (with or without subsidiaries in India). The results reveal that most citations are made among foreign firms only. However, though fewer, the citations made to foreign firms that have a subsidiary in India contribute to productivity gains of Indian firms.

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