R&D, MARKET POWER, AND EXPORTS IN THE INDIAN PHARMACEUTICAL FIRMS

This paper analyses the impact of a firm's market power and exports on R&D activity in Indian pharmaceutical firms during the period 2014–2024. Using the inflation-adjusted financial data for the 67 publicly listed Indian R&D active pharmaceutical companies, the study provides new evidence on firm-level R&D activity of the Indian drugs and pharmaceutical industry. The Generalized Method of Movement (GMM) estimator developed by Blundell and Bond is applied in this paper. The study's empirical findings reveal that a firm's market power and export intensity are significant determinants of firm-level R&D intensity.