Technological innovations and firms’ productivity in new patent regime: Evidences from Indian pharmaceutical industry

Abstract

Innovative firms enjoy more market benefits by conducting both technological (product and process) and nontechnological (organizational and marketing) innovations. This study aims to examine the relationship between technological innovations and firms’ productivity in Indian pharmaceutical industry in new patent regime. In particular, we analyze the direct impact of product and process innovation on the productivity of 168 Indian pharmaceutical firms over 2000–2013. Findings of this study reveal that technological innovations are positive source of firms’ productivity. However, this relationship varies with types of technological innovations and also ownership structure of firms. Moreover, this study also finds that the impact of technological innovation is stronger for multinational enterprises.