Template-type: ReDIF-Paper 1.0
Author-Name: Bas, M.
Author-Email: maria.bas@sciencespo.fr
Author-Workplace-Name: Sciences Po and CEPII
Author-Name: Paunov, C.
Author-Email: caroline.paunov@oecd.org 
Author-Workplace-Name: OECD
Title: The unequal effect of India's industrial liberalization on firms' decision 
	 to innovate: Do business conditions matter?
Abstract: This paper examines the heterogeneous impact of industrial 
	 liberalization policy, the dismantling of the License Raj in India, on 
	 firms innovation performance. Our results show that larger and more 
	 productive firms in liberalized industries were more likely to take up 
	 RD while the smallest and least efficient firms were less likely to do 
	 so. We also show that this inequality of effects was strongest in 
	 economically less developed Indian states and where financial 
	 development and the knowledge base are weaker. This suggests business 
	 conditions shape heterogeneous impacts of liberalization policies to the 
	 advantage of initially larger and more efficient firms. 
Classification-JEL: O25, O14, O31, D22
Keywords: Industrial policy, Innovation policy, India, Industrial performance, 
	 Firm behavior, R&D, Research and development, Innovation.
Series: UNU-MERIT Working Papers
Creation-Date: 20140431
Number: 2014-044
File-URL: https://unu-merit.nl/publications/wppdf/2014/wp2014-044.pdf
File-Format: application/pdf
File-Size: 387 Kb
Handle: RePEc:unm:unumer:2014044