Ownership and Technological Capabilities: Evidence from Automotive Firms in Brazil, India and South Africa
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Abstract
This paper examines the strength of embedding systemic and institutional support, frm-level technological capabilities and the relationship between the two in Brazil, India and South Africa. Despite Brazil and South Africa enjoying stronger exposure to external markets, frms in these countries enjoyed slightly lower technological capabilities than those in India. Stronger human capital endowments and network cohesion have helped frms in India to offset a lack of integration in external markets to drive higher technological capabilities compared to frms in Brazil and South Africa. The systemic pillars are positively correlated with frm-level technological capabilities. Foreign ownership was positively correlated with human resource practices and R&D, demonstrating the potential for strong technological spillovers from foreign to local frms. Export-intensity was positively correlated with R&D, demonstrating that the latter is critical for frms to compete in foreign markets.
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