TRANSACTION COSTS, TECHNOLOGY-TRANSFER, AND IN-HOUSE RESEARCH-AND-DEVELOPMENT - A STUDY OF THE INDIAN PRIVATE CORPORATE SECTOR

This paper deals with the determinants of in-house R&D, and the impact of technology transfer on R&D expenditures for a sample of firms belonging to the Indian private corporate sector listed with the stock exchanges in India. Using the transactions costs frame work it considers two modes of technology transfer, the first through the market, namely armslength purchases against lump sum payments and the second through foreign direct investments. The results indicate a complementary relationship between import of technology and R&D.