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<p>This paper examines expenditure on research and development (R&amp;D) activities and the factory-level factors influencing it in the Indian organised manufacturing sector. We use the latest Annual Survey of Industries panel data rounds from 2015–2016 to 2017–2018, which have information on factories’ major characteristics along with the R&amp;D-related information from 2015 onwards. We estimate the number of units involved, their registration status, and expenditure across broad industry groups, states, organisation types, and size categories. The findings point towards a weak R&amp;D performance in the sector. We model the factory-level determinants of R&amp;D activities in a two-step process, determining the probability of participation in the first stage and the extent of expenditure in the second stage using a random-effects version of Cragg’s double-hurdle model, which is more suitable in the context than Tobit or Heckman models. This paper enhances the&#xa0;understanding of R&amp;D activities in Indian factories by leveraging previously unexplored, nationally representative data and comparing the findings with existing literature that uses other sources.</p>

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R&D Activities in the Indian Organised Manufacturing: Evidence from the Annual Survey of Industries Panel Data

  • 期刊论文

  • 发表日期：

    2025年6月3日

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  • Amaresh Dubey,
  • Gopal Krishna Roy

摘要

This paper examines expenditure on research and development (R&D) activities and the factory-level factors influencing it in the Indian organised manufacturing sector. We use the latest Annual Survey of Industries panel data rounds from 2015–2016 to 2017–2018, which have information on factories’ major characteristics along with the R&D-related information from 2015 onwards. We estimate the number of units involved, their registration status, and expenditure across broad industry groups, states, organisation types, and size categories. The findings point towards a weak R&D performance in the sector. We model the factory-level determinants of R&D activities in a two-step process, determining the probability of participation in the first stage and the extent of expenditure in the second stage using a random-effects version of Cragg’s double-hurdle model, which is more suitable in the context than Tobit or Heckman models. This paper enhances the understanding of R&D activities in Indian factories by leveraging previously unexplored, nationally representative data and comparing the findings with existing literature that uses other sources.