Imported technologies and R&D in a newly industrialising country: The experience of Indian enterprises

Abstract Data of Indian enterprises are used to examine whether their imports of technology encourage or discourage their R&D activities. Statistical tests showed that the imports increased the likelihood that an enterprise would commence R&D. And for enterprises that had already set up an R&D unit the level of R&D expenditures were higher among the importers than the non-importers, and also amongst the importers the level of R&D expenditures was positively related to the payments for the imported technologies. The impact of the imports on R&D, however, seemed rather limited. The results suggest a number of questions for further research.