Impact of FDI on innovation in the Indian subcontinent

Registration ID: IJNRD_200620

Published ID: IJNRD2306592

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Simran Vohra

FDI, INNOVATION, PATENTS, TRADEMARKS, DEVELOPING COUNTRIES.

The expansion of innovation capabilities more specifically indigenous innovation, is a prerequisite for late industrializers, or so-called developing countries, for instance those of the Indian subcontinent, to achieve economic dominance in today's globalized world. The existing economic literature almost universally agrees that innovation has a positive impact on a country’s economic growth and development. The impact of FDI inflows on the impact of innovation in developing countries and how the influx of foreign capital in various forms impacts the innovation capabilities in such countries are, however, quite hotly debated in the economic literature and the literature is largely murky on this subject. There is a wealth of research that shows how FDI helps some developing countries innovate, while a similar quantum of research demonstrates how FDI inflows actually hinder the ability of some other developing countries to innovate. Additionally, research has shown that FDI inflows for some developing nations have little to no effect on their capacity for innovation in either direction. Therefore, it is important to specify the precise effects of FDI inflows on innovation for the particular countries. This paper claims to make such an attempt, namely to determine for the Indian subcontinent, the impact of FDI inflows on innovation using empirical data that has been collected over the previous three decades. For FDI inflows into the various countries of Indian subcontinent, data provided by World Bank has been utilised. Patents and trademarks have been used as proxies for Innovation, and the data for patents and trademarks has been obtained from the World Bank Database. Simple statistical tools have been used to gauge the impact of FDI inflows on innovation in Indian subcontinent over the years and appropriate conclusions regarding policy has been drawn from the same.

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Simran Vohra (June-2023). Impact of FDI on innovation in the Indian subcontinent. INTERNATIONAL JOURNAL OF NOVEL RESEARCH AND DEVELOPMENT, 8(6), f863-f871. https://ijnrd.org/papers/IJNRD2306592.pdf

Volume 8 Issue 6, June-2023

Pages : f863-f871

Paper Reg. ID: IJNRD_200620

Published Paper Id: IJNRD2306592

Research Area: Arts

Author Type: Indian Author

Country: patiala, Punjab, India

Published Paper PDF: https://ijnrd.org/papers/IJNRD2306592.pdf

Published Paper URL: https://ijnrd.org/viewpaperforall?paper=IJNRD2306592

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