Indian Journal of Industrial Relations: Economics & Social Dev.

Awadhesh Pratap Singh ¹

Affiliations
1 Indian Institute of Management, Lucknow 226013, IN

Abstract

This paper explores the linkage between R&D spillovers and productivity for a sample of Indian manufacturing firms for the period 2001- 2012. The R&D spillovers is defined as the function of R&D (R&D, royalty and technical know-how) and information and communication technology (ICT). We consider two measures of productivity, namely total factor productivity (TFP) and labor productivity for analysis. Our results show that ICT, R&D and technical know-how impact TFP. For labor productivity, our results demonstrate that firms that are engaged in ICT and invest in technical knowhow, are more productive than others. Thus, Indian manufacturing firms need to invest in information and communication technology, R&D and technical know-how to enhance their productivity. There are strong linkages among ICT, R&D, technical know-how and productivity.

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Awadhesh Pratap Singh ¹

Affiliations
1 Indian Institute of Management Lucknow, IN

Abstract

The contribution of the information and technology (IT) to Indian economy is well acknowledged. In this context, this study carries out a comprehensive literature review to find the linkages among IT, skills and productivity. Results indicate that majority of the studies support the hypothesis that IT promotes productivity and skills play the role of an enabler. The study also reveals three preconditions to accept the nexus. First, it takes time to establish the IT infrastructure and skill building and therefore time lag plays an important part. Second, it is important to have skilled workforce and people practices to reap the benefit of IT and turn them into higher productivity. Third and finally, the maturity of IT adoption is precursor for IT implementation and skill building.

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