IMPACT OF OWNERSHIP STRUCTURE ON R&D INTENSITY: THE STUDY OF INDIAN FIRMS

Investment in R&D has become one of the crucial factors in the survival and competitiveness of firms. Using a sample of 139 Indian firms, the study examines the significance of ownership structure concerning R&D intensity. Results indicate that indeed concentration, as well as, the identity of the investor matters when it comes to strategic decisions like investing in R&D. In that respect ownership concentration has a positive impact, whereas by identity, family shareholders and FIIs exert a positive impact on R&D identity, however, domestic institutional investors of both short-term and long-term have no such effect.