Technological effort and disembodied technology exports: An econometric analysis of inter-industry variations in India

This paper attempts a preliminary test of the determinants of Indian technological capability as measured by disembodied technology exports by a sample of the largest private-sector quoted companies in India. After placing the study in the context of research on the nature of technological activity in developing countries, the authors describe the variables which they have used to explain inter-industry variation in technology exports. The results of a preliminary statistical investigation are presented. Despite acknowledged limitations of data, the authors are able to suggest some interesting tendencies which could be the subject of further investigation: (a) formal R&D is a significant positive influence on the sort of technological development which is embodied in technology exports; (b) skill and scale requirements appear to promote technological development rather than retard it; (c) the presence of foreign ownership does not seem to inhibit technological development or technology exports.