By Sengupta Jati K. Neogi Chiranjib
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Additional resources for India’s New Economy: Industry Efficiency and Growth
Example text
However, India has to implement some more appropriate to openness in world trade and competitive efficiency and transparency. Three types of strategies are needed in particular. One is to develop and expand the incentive system for export-sensitive industries so that they can compete more easily in the world markets. On the domestic front new markets have to be fostered and developed. Second, the IT sector, with its software network and various ‘outsourcing’ services sold abroad, needs to adopt strategies that will sustain and improve competitive and comparative advantage in the world market.
The share of R&D in total costs is quite important for these 17 companies, which include well known companies such as Merck, Ely Lily, Pfizer, Bausch and Lomb and Glaxo Smith Kline. Two important points emerge from these results. One is that the number of firms on the cost-efficiency frontier is about one-third and these firms are invariably efficient in using their R&D inputs. Second, both the efficiency score and the inputs help the firms improve their cost-efficiency and hence improve their market share.
On unit R&D expenditure (intensity) of business units. The sample data included R&D-performing business units consisting of 1302 units representing 297 firms in 151 lines of business in the US manufacturing sector over the period 1975–77. The empirical data were obtained from the FTC’s (Federal Trade Commission) Line of Business Program and the survey data collected by Levin et al. (1987). 8. ’s (1987) survey were 18 India’s New Economy asked to rate on a seven-point scale the effectiveness of different methods used by firms to protect the competitive advantages of new products and new processes.