R&D Activity in Manufacturing Units: Evidence from India

2024-05-07 11:42:09

Using data from the Government of India’s Annual Survey of Industries, we explore the determinants of R&D and manufacturing activities in the same unit. We explore unit-level characteristics that predict the likelihood of manufacturing units’ engaging in on-site R&D activity. Our results suggest that foreign ownership, managerial resources, and support services at the level of the unit influence its ability to realize economies of internal agglomeration. We also find that foreign- and domestic-owned units experience significantly different impacts of resources, both managerial and support, on the likelihood of such colocation of manufacturing and R&D. Our results show support for the hypothesized effects.

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