Developing countries' imports of technology, in-house technological capabilities and efforts: an analysis of the Indian experience

Abstract This paper examines whether enterprises' decisions to import technology are influenced by their in-house technological capabilities and whether the imports subsequently lead to an increase in the R&D intensities. It is argued that in a competitive market situation these decisions could be linked in a sequential relationship, but protectionist regulatory policies may make such a relationship quite unlikely. Empirical tests with data of Indian enterprises in the electrical and electronic industries, circa 1990, found results consistent with the predictions for the protected regulatory situation.

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