Globalization, Technological Innovation, and Technology Intensive Exports : Empirical Findings for the Indian Economy

One of the basic constituents of a vibrant technology regime of a country is the extent to which the technological innovation is geared towards its external sector, wherein one of the essential determining factors of innovation of a country is the public expenditure on Research and Development. Globalization has entailed a significant step up in the level of carrying innovation in the countries to cope up with the changing nature and structure of the industries across the globe and to meet the challenges posed by the emerging pattern of competition. The liberalization of the Indian economy in 1991 has widened its scope for going 'global' in terms of technology intensive exports on the one hand, and being innovative on the other. In this paper, an attempt was made to study the impact of the public expenditure on Research and Development on the technology intensive exports of the Indian economy during the pre-and post- liberalization era (1980-81 to 1990-91 and 1991-92 to 2007-2008) on the basis of the log-linear model of regression analysis.