Firm size, R&D expenditure, and international orientation: an empirical analysis of performance of Indian firms
by Abhishek Kumar Sinha; Aswini Kumar Mishra; Yash Patel
International Journal of Technological Learning, Innovation and Development (IJTLID), Vol. 11, No. 4, 2019

Abstract: We examine the Schumpeterian hypothesis that large firms have an advantage in research and development. Using CMIE Prowess data of S&P BSE index, the firms are segregated as per the market capitalisation into large, mid and small cap firms. We analyse the financial performance of these firms for the post-reform period in India (1992-2017). The study finds that the R&D expenditure has statistically significant effects on firms' total income when either fixed industry effects or fixed year effects are taken into account. The income of the firms is also determined by the export earnings and total imports but with less impact than R&D. The results also show that outward-oriented firms have a greater tendency to spend on research and development expenses. Results from quantile regression suggest that the firms in the higher quantile have statistically higher significant effects of R&D expenditure and outward orientation, on firms' total income than the firms in the relatively lower quantile.

Online publication date: Wed, 15-Apr-2020

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Technological Learning, Innovation and Development (IJTLID):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com