Determinants of Industrial R&D Investment of Large Manufacturing Firms in India: Post Global Financial Crisis of 2008.

Across the world, large firms show a greater propensity to undertake innovative activity. Large firms are more active in R&D activities, technology in-licensing, employing qualified manpower, organizational and marketing practices. In India too, bulk of industrial R&D investment comes from large firms. Analyzing a panel dataset of 610 large manufacturing firms having higher propensity to undertake R&D activities over a span of 6 years (2009-2014), the paper tries to identify the determinants of R&D investment in large manufacturing firms in India. The result shows that the large manufacturing firms who are younger in age, highly engaged in import and export activities and more profitable have higher propensity to undertake R&D activities and investment. The result could provide policymakers a handle to create a space for targeted initiatives for the large manufacturing firms in India. [ABSTRACT FROM AUTHOR]