R&D intensity and exports: a study of Indian pharmaceutical firms

Abstract

The export intensity of Indian pharmaceutical firms has increased substantially in the period after 1995 when the new, more restrictive patent regime was introduced in India. The hike in export intensity has been accompanied by an increase in R&D intensity of Indian pharmaceutical firms. The results of the econometric analysis presented in the paper indicate that increased R&D efforts of Indian pharmaceutical firms were responsible in a major way for the observed increase in export intensity. The econometric results suggest that the impact of R&D intensity on exports depends on the level of productivity already reached by the firms.

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