An Assessment of FDI Flow into R&D Across the World and India

Abstract

The flow of FDI into R&D was significantly associated with innovations. Which can give positive strength in the economic growth by encouraging employment, production, inventions, etc. To account this study has taken secondary data set over 20 years from 2003 to 2022 in major countries across the World. Study has observed major flow of FDI into R&D have seen in India, China, US, England, and Spain. However, the flow is declining over a period in China than India and others have faced increasing trend. In India higher flow of capital observed in southern states, which is higher in Karnataka, Maharashtra, Telangana, Andhra Pradesh, and Tamilnadu. India has received massive expenditure of FDI into R&D in 2022 than US also. Along with that, India stands in the first place at exports with 26.6 percent but even not found under top importer of R&D products. From the estimation of India's Productive Capacity Index (PCI), FDI and R&D in India was focusing highly on structural change, institutional activities, private sector growth, energy sectors development.