“…In this backdrop, the present study examines the major factors that determine innovation in case of Indian manufacturing firms. There are plenty of studies which examine linkage between R&D and productivity, determinants of R&D, adoption of technology, FDI spillover effects and productivity, and relationship between R&D, productivity and trade in case of Indian manufacturing (see, for instance, Basant & Fikkert, 1996; Franco & Sasidharan, 2010; Hasan, 2002; Kathuria, 2002; Kumar & Aggarwal, 2005; Kumar & Joseph, 2006; Kumar & Saqib, 1996; Kumar and Siddharthan, 1994; Parthasarathi & Joseph, 2002; Raut, 1995; Ray & Bhaduri, 2001; Sasidharan & Kathuria, 2011; Sharma, 2012; Sharma & Mishra, 2011; Siddharthan, 1992; Siddharthan & Narayanan, 2016). But few studies have focused on innovation and its major determinants (see, e.g., Cohen & Levinthal, 1989; Monreal- Pérez et al, 2012; Narayanan & Bhat, 2009; Van Long, Raff & Stahler, 2011; Wang & Kafouros, 2009; Yang & Chen, 2012).…”