Technology spillovers from foreign direct investment in the Indian pharmaceutical industry

We examine whether knowledge spillovers from MNCs' local R&D activities ben efit domestic firms in the Indian pharmaceutical industry from 1980-1994. I n a policy environment that restricted FDI and provided weak intellectual p roperty protection, we find that the only significant R&D spillovers in the Indian pharmaceutical sector were between MNCs and each other, We explore the implications of our findings in light of India's economic and industria l policy goals and implementation.