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DOES INNOVATION ENHANCE PRODUCTIVITY IN CASE OF SELECTED INDIAN MANUFACTURING FIRMS?

SEENAIAH KALE

Institute for Studies in Industrial Development, 4, Institutional Area, Vasant Kunj, New Delhi 110 070, India

E-mail Address: [email protected]

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and

BADRI NARAYAN RATH

Department of Liberal Arts, Indian Institute of Technology Hyderabad, India

E-mail Address: [email protected]

Corresponding author.

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https://doi.org/10.1142/S0217590818500340Cited by:10 (Source: Crossref)

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Abstract

This study examines the effects of innovation on productivity of Indian Manufacturing firms. Despite the voluminous literature on this area, the demanding line, i.e., various types of innovation effects on productivity growth, received little attention particularly in the Indian context; hence, our study fills the gap by employing firm-level data from Hyderabad and Bengaluru cities of India from 2011 to 2013. The estimated results confirm the significant impact of innovation on productivity upsurge in Indian manufacturing firms. Further, we investigate the spatial aspects of innovation considering the two cities separately. However, such city-based analysis does not produce any different findings.

Keywords:

JEL: L60, O31, O47, C33

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