Economics, Econometrics and Finance
3 years ago

Innovation outputs drive firm productivity in India, organizational innovation lags behind.

International Journal of Innovation Science
Exploring firm-level innovation and productivity in India
Aswini Kumar Mishra, Abhishek Kumar Sinha, Abhijeet Khasnis, Sai Theja Vadlamani

Paper Summary

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The article explores how innovation affects firm productivity in India. The researchers used a model to measure productivity based on innovation inputs and outputs. They found that financial obstacles and firm size influence R&D investment, with larger firms having higher research intensity. Product and process innovation together contribute significantly to firm productivity, while organizational innovation has a negative impact. This suggests that a combination of product and process innovation is key for improving firm productivity in India.