Innovation, productivity, exports and the investment climate: A study based on Indian manufacturing firm-level data - HAL-SHS - Sciences de l'Homme et de la Société Access content directly
Preprints, Working Papers, ... Year : 2019

Innovation, productivity, exports and the investment climate: A study based on Indian manufacturing firm-level data

Abstract

We study the interactions between firm-level innovation, productivity and exports in the case of the Indian manufacturing sector. To differentiate the incentives to innovate from the ability to innovate, we distinguish the inputs of innovation (R&D and training), from the outputs. Our findings highlight a virtuous circle between the three components of innovation, as well as between firm-level R&D, innovation and exports. The results suggest a positive effect of R&D on innovation (product innovation in particular), of innovation on exports (product and marketing innovation especially), and of exports on R&D. Furthermore, it seems that training and R&D reinforce each other in the Indian firm-level innovation process: doing R&D incites firms to train their workforce, and training stimulates R&D in return. Productivity of the Indian manufacturing firms seems to benefit from that dynamics, as exporting and innovating would improve firm-level TFP. As for the investment climate, our results suggest that the differences in the Indian firm-level environment participate in the firms’ performance gaps. These results are all the more important in the context of the Make in India campaign and the business environment deficiencies.
Fichier principal
Vignette du fichier
E&D Cerdi 2019-1 Plane et Veganzones publié OK.pdf (3.51 Mo) Télécharger le fichier
Origin Files produced by the author(s)
Loading...

Dates and versions

halshs-01990327 , version 1 (23-01-2019)

Identifiers

  • HAL Id : halshs-01990327 , version 1

Cite

Patrick Plane, Marie-Ange Véganzonès-Varoudakis. Innovation, productivity, exports and the investment climate: A study based on Indian manufacturing firm-level data. 2019. ⟨halshs-01990327⟩
126 View
396 Download

Share

Gmail Mastodon Facebook X LinkedIn More