Abstract:This paper empirically analyzes spillover effects from foreign direct investment using the firm level panel data of Indian manufacturing during 2000-01 and 2009-10. It first estimates the productivity and efficiency of the domestic and foreign firms separately before examining the spillover effects by using PROWESS dataset. The use of the Cobb-Douglas production function for productivity and stochastic frontier approach for efficiency reveals higher productivity and efficiency of the foreign firms over their d… Show more
“…MNEs also file patents in the developing countries for various other strategic reasons such as protection against infringement, strengthening competitive advantage, creation of entry barriers and protection from litigation (Collinson & Narula, 2014; Setterstrom et al, 2013). In the context of India, studies such as Goldar et al (2004), Sahu and Solarin (2014) and Banga (2004) explain that MNEs in India are superior to domestic firms in terms of their productivity score.…”
Section: Mnes and Indian Pharmaceutical Industrymentioning
Technological innovations are positively associated with firms’ market performance. This study aims to examine the impact of product and process innovation on the market power of 168 Indian pharmaceutical firms during 2000–2013. We generate product and process patent stock to capture firm-level innovation activities. Findings of this study suggest that both product and process innovation positively influence firms’ market power. Results also reveal that MNEs enjoy more market power in the Indian pharmaceutical industry. Further, this study also highlights that there is a differential impact of firms’ product group on market power. This study concludes that patenting is a positive source of firm performance in the Indian pharmaceutical industry.
“…MNEs also file patents in the developing countries for various other strategic reasons such as protection against infringement, strengthening competitive advantage, creation of entry barriers and protection from litigation (Collinson & Narula, 2014; Setterstrom et al, 2013). In the context of India, studies such as Goldar et al (2004), Sahu and Solarin (2014) and Banga (2004) explain that MNEs in India are superior to domestic firms in terms of their productivity score.…”
Section: Mnes and Indian Pharmaceutical Industrymentioning
Technological innovations are positively associated with firms’ market performance. This study aims to examine the impact of product and process innovation on the market power of 168 Indian pharmaceutical firms during 2000–2013. We generate product and process patent stock to capture firm-level innovation activities. Findings of this study suggest that both product and process innovation positively influence firms’ market power. Results also reveal that MNEs enjoy more market power in the Indian pharmaceutical industry. Further, this study also highlights that there is a differential impact of firms’ product group on market power. This study concludes that patenting is a positive source of firm performance in the Indian pharmaceutical industry.
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