Influence of R&D and ICT Capabilities on Innovation Performance: Evidence from Indian Firms

Abstract

Innovation plays a critical role in the growth of developing economies like India. The primary purpose of the current study is to investigate the role of research and development (R&D) and Information and communication technology (ICT) in firms’ innovation outcomes. The study uses data from firm-level surveys in India to examine the linkages of R&D and ICT on innovation outcomes and establishes linkages with policy elements to develop innovation ecosystems. The study uses a set of tobit regression models, generalized structural equations model and explorative content analysis to examine innovation outcomes of firms. The results indicate that both R&D and ICT parameters play a significant role in influencing innovation outcomes though they are moderated by the size of the firm and sector. The study adds to the existing literature on the resource-based view of the firm and also the literature on innovation management in the context of emerging economies. The authors examine the role of capabilities around R&D and ICT in influencing firm-level innovations.