Advertisement

Technology pp 27-42 | Cite as

Patenting and Technical Efficiency of Manufacturing Firm in India: Evidence from Medium and High Technology Firms

  • Sunil KumarEmail author
  • Ruchi Sharma
Chapter
Part of the India Studies in Business and Economics book series (ISBE)

Abstract

The paper discusses the impact of patenting on technical efficiency of 489 high and medium-technology firms in India using firm level data for the period 2000–2010. Present study estimates technical efficiency based on group frontier as well as meta-frontier approach. The study employs relatively new source of data particularly in the context of India, firm level patent granted, that has not been explored earlier. The study finds that majority of Indian firms though suboptimal but has improved their efficiency during the study period. We also find an evidence of the impact of patenting on the technical efficiency of firms whereas R&D expenditure has little impact.

Keywords

Data Envelopment Analysis Technical Efficiency Efficiency Score Foreign Firm Domestic Firm 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

  1. Aghion, P., Harris, C., Howitt, P., & Vickers, J. (2001). Competition, imitation and growth with step-by-step innovation. The Review of Economic Studies, 68(3), 467–492.CrossRefGoogle Scholar
  2. Aitken, B. J., & Harrison, A. E. (1999). Do domestic firms benefit from direct foreign investment? Evidence from Venezuela. American Economic Review, 89, 605–618.CrossRefGoogle Scholar
  3. Bartelsman, E., & Doms, M. (2000). Understanding productivity: Lessons from longitudinal micro data. Journal of Economic Literature, 38(3), 569–594.CrossRefGoogle Scholar
  4. Basant, R., & Fikkert, B. (1996). The effects of R&D, foreign technology purchase, and domestic and international spillovers on productivity in Indian firms. The Review of Economics and Statistics, 78(2), 187–199.CrossRefGoogle Scholar
  5. Bhandari, A. K., & Ray, S. C. (2012). Technical efficiency in the Indian textile industry: A non parametric analysis of firm-level data. Bulletin of Economic Research, 64(1), 109–124.CrossRefGoogle Scholar
  6. Bremmer, J., Alfons, G. J. M., Lansik, O., & Huirne, R. B. M. (2008). The impact of innovation, firm growth and perceptions on technical and scale efficiency. Agricultural Economic Review, 9(2), 65–85.Google Scholar
  7. Cameron, A. C., & Trivedi, P. K. (2010). Micro econometric using stata (Revised ed.). Lakeway Drive, Texas: Stata Press Publication. 4905.Google Scholar
  8. Chang, X., McLean, R. D., Zhang, B., & Zhang, W. (2013). Patents and productivity growth: Evidence from global patent awards. Available at http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2371600
  9. Charnes, A., Cooper, W. W., & Rhodes, E. (1978). Measuring the efficiency of decision-making units. European journal of operational research, 3, 429–444.Google Scholar
  10. Coe, D. T., & Helpman, E. (1993). International R&D spillovers, NBER working paper series 4444. Available at http://www.nber.org/papers/w4444
  11. Crepon, B., Duguet, E., & Mairesse, J. (1998). Research, innovation and productivity: An econometric analysis at the firm level, NBER working paper 6696. Available at http://www.nber.orgpapers/w6696
  12. Deolalikar, A. B., & Roller, H. L. (1989). Patenting by manufacturing firms in India: Its production and impact. The Journal of Industrial Economics, 37(3), 303–314.CrossRefGoogle Scholar
  13. Diaz-Mayans, M. A., & Sanchez, R. (2014). Innovation, exports and technical efficiency, MPRA paper No 53230. Available at http://mpra.ub.uni-muenchen.de/53230/
  14. Eaton, J., & Kortum, S. (1996). Trade in ideas: patenting and productivity in the OECD. Journal of International Economics, 40, 251–278.CrossRefGoogle Scholar
  15. Farrell, M. J. (1957). The measurement of productive efficiency. Journal of the Royal Statistical Society, 120(3), 253–290. Series A (General).CrossRefGoogle Scholar
  16. Fethi, M. D., Jackson, P. M., & Weyman-Jones, T. G. (2000). Measuring the efficiency of European airlines: An application of DEA and Tobit analysis, EPRU Discussion paper. Available at http://hdl.handle.net/2381/370
  17. Gillen, D., & Lall, A. (1997). Developing measures of airport productivity and performance: An application of data envelopment analysis. Transportation Research, 33(4), 261–273.CrossRefGoogle Scholar
  18. Griffith, R., Huergo, E., Mairesse, J., & Peters, B. (2006). Innovation and productivity across four European countries, NBER working paper series 12722. Available at http://www.nber.org/papers/w12722
  19. Griliches, Z. (1987). Patent statistics an economic indicator: A survey. In Z. Griliches (Ed.), R&D and productivity: The econometric evidence. University of Chicago press.Google Scholar
  20. Griliches, Z., & Mairesse, J. (1984). Productivity and R&D at the firm level. In Z. V. Griliches (Ed.), R&D, patents and productivity. Massachusetts Avenue Cambridge, U.S.A: NBER Books.Google Scholar
  21. Hall, B. H. (2011). Innovation and productivity, NBER working paper No. 17178. Available at http://www.nber.org/papers/w17178
  22. Honore, B. E. (1992). Trimmed lad and least squares estimation of truncated and censored regression models with fixed effects. Econometrica, 60(3), 533–565.CrossRefGoogle Scholar
  23. Kamien, M. I., & Schwarts, N. L. (1982). Market structure and innovation. Cambridge: Cambridge University Press.Google Scholar
  24. Kathuria, V., Raj, R. S. N., & Sen, K. (2013). Productivity measurement in Indian manufacturing: A comparison of alternative methods. Journal of Quantitative Economics, 11(1&2), 148–179.Google Scholar
  25. Krohonen, P., Tainio, R., & Wallenius, J. (2001). Value efficiency analysis of academic research. European Journal of Operational Research, 130, 121–132.CrossRefGoogle Scholar
  26. Kumar, S. (2005). A decomposition of total productivity growth: A regional analysis of Indian industrial manufacturing growth. International Journal of Productivity and Performance Management, 55(3/4), 311–331.Google Scholar
  27. Levinsohn, J., & Petrin, A. (2003). Estimating production functions using inputs to control for unobservables. The Review of Economic Studies, 70(2), 317–341.Google Scholar
  28. Luoma, K., Jarvio, M. L., Suoniemi, I., & Hjerppe, R. T. (1996). Financial incentives and productive efficiency in Finnish health centers. Health Economics, 5, 435–445.CrossRefGoogle Scholar
  29. Mahadevan, R. (2001). Assessing the output and productivity growth of Malaysia’s manufacturing sector. Journal of Asian Economics, 12, 587–597.CrossRefGoogle Scholar
  30. Mahadevan, R. (2003). To measure or not to measure total factor productivity growth? Oxford Development Studies, 31(3), 365–378.CrossRefGoogle Scholar
  31. Mansfield, E. (1984). R&D and innovation: Some empirical findings. In Z. V. Griliches (Ed.), R&D, patents and productivity. Massachusetts Avenue Cambridge, U.S.A: NBER Books.Google Scholar
  32. Marjit, S., & Kar, S. (2009). A contemporary perspective on the informal labour market: Theory, policy and the Indian experience. Economic and Political Weekly, 44(14), 60–71.Google Scholar
  33. Meeusen, W., & Van den Broeck, J. (1997). Efficiency estimation from Cobb-Douglas production functions with composed errors. International Economic Review, 18, 435–444.CrossRefGoogle Scholar
  34. Mokyr, J. (2010). The contribution of economic history to the study of innovation and technical change: 1750–1914. In B. H. Hall & N. Rossenberg (Eds.), Handbook of the economics of innovation (Vol. I). Oxford, U.K.Google Scholar
  35. Raj, R. S. N. (2011). Structure, employment and productivity growth in the Indian unorganized manufacturing sector: An industry level analysis. Singapore Economic Review, 56, 349–376.CrossRefGoogle Scholar
  36. Raut, L. K. (1995). R&D spillover and productivity growth: Evidence from Indian private firms. Journal of Development Economics, 48, 1–23.CrossRefGoogle Scholar
  37. Ray, S. C. (2002). Did India’s economic reforms improve efficiency and productivity? A non parametric analysis of the initial evidence from manufacturing. Indian Economic Review, 37(1), 23–57.Google Scholar
  38. Sanchez, R., & Diaz, M. A. (2013). Are large innovative firms more efficient? MPRA paper No 44592. Available at http://mpra.ub.uni-muenchen.de/44592/
  39. Sharma, C. (2010). Does productivity differ in domestic and foreign firms? Evidence from Indian machinery industry. Indian Economics Review, 45(1), 87–110.Google Scholar
  40. Wang, E. C., & Huang, W. (2007). Relative efficiency of R&D activities: A cross-country study accounting for environmental factors in the DEA approach. Research Policy, 36, 260–273.CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media Singapore 2016

Authors and Affiliations

  1. 1.School of Business Studies and Social SciencesChrist UniversityBangaloreIndia
  2. 2.School of Humanities and Social SciencesIndian Institute of TechnologyIndoreIndia

Personalised recommendations