The role of domestic-firm knowledge in foreign R&D collaborations: Evidence from co-patenting in Indian firms
Nanditha Mathew, Lorenzo Napolitano & Ugo Rizzo
#2020-044
In this paper we analyze the impact of foreign R&D collaborations on the
performance of domestic firms and how the relationship is augmented by
the pre-existing capabilities of the domestic firms. Using data on
Indian firms, we study patterns of co-invention of Indian firms with
foreign partners. The results from a causal mediation analysis confirm
the crucial role played by domestic firms' absorptive capacity in
enhancing the benefits from a foreign collaboration. The evidence we
present in this work highlights the microeconomics behind the process of
technological capability accumulation and catching up in developing
countries.
JEL Classification: L20, O30, D24, O12
Keywords: Co-patenting, Foreign Collaboration, Absorptive Capacity,
Capability accumulation, Corporate Performance