Antecedents to innovation in emerging markets: evidence from India

Abstract

Firms utilise both internal and external knowledge reservoirs in order to innovate. This study explores the drivers of innovation specifically, role of business groups, alliances, degree of internationalisation and financial slack on innovation. Hypotheses are tested using patent data on a sample of Indian firms. Group affiliation, financial slack and degree of internationalisation are found to positively impact innovation output. This study contributes towards the nascent literature on innovation in the Indian context.