FDI, Technology and Innovation (eBook)

Preface 5
Contents 6
About the Editors 8
Introduction to the Volume 10
1 Background 10
2 Changing Nature of FDI 11
3 FDI, Productivity and Knowledge Spillovers 14
4 Market Structure and Innovative Activities 15
5 FDI—Push and Pull Factors 16
6 Impact of FDI on Labour, Welfare and Environment 16
7 Guided Tour of Chapters 17
References 19
Country Origin of Foreign Direct Investment in Indian Manufacturing and Its Impact on Productivity of Domestic Firms 21
1 Introduction 21
2 Data Sources, Estimation of TFP and Construction of Variables 26
2.1 Data Sources 26
2.2 Estimation of TFP 27
2.3 Construction of Foreign Ownership Variables 29
2.4 Construction of and Summary Statistics on Control Variables 31
3 Do FDI Firms Have Higher Productivity? 32
4 Does Foreign Acquisition of Domestic Firms Raise Their Productivity? 38
5 FDI Spillover Effects on Domestic Firms 44
5.1 Spillover Variables and Model Specification 44
5.2 Empirical Results 47
6 Conclusion 56
Annexure 57
References 59
Knowledge Spillover Mechanisms 64
1 Introduction 64
2 Types of Knowledge Spillover Pathways 65
3 The Role of Foreign Direct Investment 66
4 The Measurement of Spillovers 67
5 Knowledge Gap and Absorptive Capacity 69
6 The Observation–Imitation–Interaction Pathway 70
7 The Labor Mobility Pathway 73
8 The Double Effect of Competitive Pressure: Positive and Negative Spillovers 75
9 The Value Chain Upgrading Pathway 79
10 Conclusions 80
References 81
Implications of International Harmonization of IPR on Growth and Competitiveness Among the Developing Nations 82
1 Introduction 82
1.1 Conceptual Framework 84
2 Review of Literature 87
2.1 Discussion on Why Developing Countries Need to Enhance Their IPR Strength 87
2.2 Factors Affecting Innovation and Competitiveness 89
3 The Model, Econometric Issues and the Data 90
3.1 Econometric Specification 92
4 Empirical Results 92
4.1 Description of the Data 92
4.2 Regression Analysis 92
5 Discussion, Policy Implications and Conclusion 96
Appendix 97
References 99
Patent Policy and Relationship Between Innovation and Monopoly Power: Evidence from Indian High and Medium Technology Industries 102
1 Introduction 102
2 Patent Policy Change in India 103
3 Literature Review 104
4 Description of Variables 106
4.1 Endogenous Variables 106
4.2 Control Variables 107
5 Data 108
6 Results of the Model Estimation 112
6.1 Innovation Equation 113
6.2 Monopoly Power Equation 117
7 Conclusion 119
References 120
Interplay of Technology and Labour Productivity: Emerging Story of Consumer Electronics in India 124
1 Introduction 124
2 Technology as a Capability 125
3 Consumer Electronics Sector in India 127
4 Foreign Conglomerates Forays into Indian Consumer Electronics 131
5 Emerging R& D Destination in India
6 Production Chain of the Indian Consumer Electronics Industry 133
7 Understanding the Domestic Production System of Consumer Electronics in India 134
8 Productivity, Technology and Relative Factor Prices: A Structural Model 141
9 Conclusion 144
Appendix 1 145
Appendix 2 149
References 149
Firm-Specific Determinants of R& D Behaviour of Foreign Affiliates in India
1 Introduction 151
2 Literature Review on Factors Determining R& D Activities
2.1 Size of the Firm 153
2.2 Age of the Firm 153
2.3 Capital Intensity 154
2.4 Labour Intensity 154
2.5 Selling and Distribution 155
2.6 Outsourcing 155
2.7 Import of Technology 155
3 Sample and Methodology 156
3.1 Econometric Specifications 156
4 Patterns in in-House R& D Investments by Foreign Affiliates in the Present Study
5 Analysis and Results 161
5.1 Results of Random Effects Tobit Econometric Models 163
5.2 Results of Heckman Two-Step Econometric Models 166
6 Conclusion and Implications 171
References 172
Push Factors of Outward FDI—A Cross-Country Analysis of Developed and Developing Countries 174
1 Introduction 174
2 Survey of Literature 175
3 Push Factors of OFDI 177
3.1 Home Country—Market Conditions 177
3.2 Policy Variables 178
3.3 Economic Variables 178
3.4 Production Factors 179
3.5 Governance, Corruption and Outward FDI 179
3.6 Ease of Doing Business 180
4 Methodology 182
4.1 Empirical Model Specification and Data Description 182
4.2 The Basic Panel Regression Model 182
4.3 Quantile Regression 186
5 Empirical Findings and Discussion 187
5.1 Examining Push Factors in a Univariate Setup 187
5.2 Examining Push Factors in a Multivariate Setup 198
5.3 Governance, Control of Corruption and Ease of Doing Business 199
5.4 Ease of Doing Business 200
6 Summary and Conclusions 200
Appendix 203
References 206
Foreign Direct Investments and Environmental Policies: A Meta-Analysis 209
1 Introduction 209
2 Estimation Strategies and Selection of Variables 213
3 Results and Discussion 215
4 Conclusion 221
Appendix: Select Studies for Meta Analysis 222
References 224
FDI, Labor Market and Welfare: How Inequality Navigates Welfare Loss? 226
1 Introduction 226
2 Methodological Framework 229
2.1 The Model 229
2.2 Empirical Strategy 231
3 Data Sources and Variable Description 231
4 FDI, Labor Market and Inequality: A Preliminary Analysis 233
5 Empirical Results and Discussion 236
5.1 Global Perspective 236
5.2 A Case of Asian Economies 241
6 Conclusion 242
Appendix 244
References 245
Aggregate Fluctuations and Technological Shocks: The Indian Case 247
1 Introduction 247
2 Technological Shocks as a Source of Business Cycles 248
3 Data and Methods 250
4 Results and Discussions 252
5 Conclusion 256
References 256