Patenting by Manufacturing Firms in India: Its Production and Impact

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This paper attempts to study simultaneously the production and impact of patenting in a less-developed country, using panel firm-level data for the period 1975-79 for India. Our results suggest that, despite the limited protection of intellectual property rights in India, patenting is associated with a significant increase in total factor productivity growth at the firm level. After controlling for unobserved fixed firm effects, R & D manpower appears to be the only input which influences significantly the probability of patenting.