Technology Upgrading Strategies and Level of Technology Adoption in Japanese and US Firms in Indian Manufacturing

  • Rashmi Banga


Foreign Direct Investment (FDI) in India assumed critical importance in the context of the economic reforms process initiated in the 1990s. India’s FDI policy, as formulated under the Foreign Exchange Regulation Act (1973) had been one of the most restrictive in the world; however, an important measure undertaken in the reform process was a major relaxation of the policy regime relating to FDI. FDI was sought because it was expected to augment investible resources and, more importantly, improve technological standards and the skills, efficiency and competitiveness of domestic industry. It was also expected to bring ‘relatively’ later technology into industry, since markets for technology are imperfect, which makes the transaction costs for sales of technology by multinational companies (MNCs) to outsiders high (Buckley and Casson 1976; Caves 1996; Teece 1981).


Foreign Direct Investment Foreign Firm Technology Adoption Export Intensity Japanese Firm 
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© Palgrave Macmillan, a division of Macmillan Publishers Limited 2005

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  • Rashmi Banga

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