An Empirical Study of the Impact of FDI, JVs and Trade on Domestic Technology Stock of India
- 1 IBS-Hyderabad, The ICFAI Foundation for Higher Education, Hyderabad, India
- 2 IBS-Hyderabad, The ICFAI Foundation for Higher Education, Hyderabad, India
Abstract
This research is an effort to empirically understand the relationship among the three modes of International Technology Transfer (ITT)—1) Foreign direct investment (FDI), 2) joint ventures (JVs) and 3) trade. A common factor as representative of technology stock is derived using a number of scientific journal publications, engineering exports, number of trademark registered and patent filed in India by native as well as foreign applicants. A simple linear regression (using ordinary least square method) is conducted on the technology stock and foreign direct investment, joint ventures and trade indicators. Results represent that FDI, JVs and trade are affecting the domestic technology stock gain. SPSS 17<sup>®</sup> is used for factor analysis and transformation of indicators. EView6<sup>®</sup> is used to make data set stationary and run regression analysis.
- Glass, A. and Saggi, K. (2009) The Role of Foreign Direct Investment in International Technology Transfer. In: Dutt, A. and Ros, J., Eds., International Handbook of Development Economics, Edward-Elgar, Cheltenham.
- Subbarao, P.S. (2008) International Technology Transfer to India—An Impedimenta & Impetuous. W.P. No. 2008-01-07.
- Maskus, K.E. (2004) Encouraging International Technology Transfer. UNCTAD-ICTSD Project on IPRS and Sustainable Development. Paper No. 7. https://doi.org/10.7215/IP_IP_20040501A
- Cheng, L.K. and Kwan, Y.K. (2000) What Are the Determinants of the Location of Foreign Direct Investment? The Chinese Experience. Journal of International Economics, 51, 379-400. https://doi.org/10.1016/S0022-1996(99)00032-X
- Kamal, S. (1996) Entry into a Foreign Market: Foreign Direct Investment versus Licensing. Review of International Economics, 4, 99-104. https://doi.org/10.1111/j.1467-9396.1996.tb00087.x
- van Pottelsberghe de la Porterie, B. and Lichtenberg, F. (2001) Does Foreign Direct Investment Transfer Technology across Borders? The Review of Economics and Statistics, 83, 490-497. https://doi.org/10.1162/00346530152480135
- Wada, T. (2001) Equity Joint Ventures and the Scope of Knowledge Transfer between Diversified Firms: Evidence from U.S.-Japan Alliances. Faculty of Economics, Gakushuin University, Tokyo, Japan.
- Miyake, T. (2005) International Technology Transfer. CACCI Journal, 2.
- Lane, P.J., Salk, J.E. and Lyles, M.A. (2001) Absorptive Capacity, Learning, and Performance in International Joint Ventures. Strategic Management Journal, 22, 1139-1161. https://doi.org/10.1002/smj.206
- Sazali, A.W., Haslinda, A., Jegak, U. and Raduan, C.R. (2010) MNCs’ Size, Technology Recipient Characteristics and Technology Transfer in International Joint Ventures. Research Journal of International Studies, 13, 17-31.
- Davidson, W.H. (1985) Key Characteristics in the Choice of International Technology Transfer Mode. Journal of International Business Studies, 16, 5-21. https://doi.org/10.1057/palgrave.jibs.8490448
- Kneller, R., Panteal, S. and Upward, R. (2010) Does Absorptive Capacity Affect Who Benefits from International Technology Transfer? European Trade Study Group 2010 12th Annual Conference, Lausanne, 9-11 September 2010.
- Watson, F., Johnstone, N. and Hascic, I. (2009) Using Patent Data as an Indicator of International Technology Transfer. World Bank Research Observer, 17, 191-235.