Making one’s own way: jumping ahead in the capability space and exporting among Indian firms

Abstract This paper provides large scale evidence on the determinants of international competitiveness Indian manufacturing firms, focusing in particular role technology, costs and imported intermediate inputs. Our suggests that innovation, R&D investment, is positively related to both firms’ probability export volumes. We also find inputs, incorporating foreign technology strongly associated with expanding activities firms. Finally, contrast much previous developed economies, we higher productivity or lower unit labour are not systematically enter markets, but they Overall our results point existence a pattern involvement trade for firms developing countries relying as main driver cost competitiveness.