Technological Intensity of Indian Exports and the Performance of Emerging Asian Economies

Abstract

The increasing share of technological-intensive products in the world trade has recognized technology and technological capabilities as a major factor for competitiveness and growth. Notably, the emerging countries are progressively becoming the exporters of the products that are technologically more intensive. Thus, the current study presents an analysis of Indian exports and the performance of emerging Asian economies in terms of technological intensity over the period 1980–2016. The study shows that the exports of all the said emerging economies have a large technological base owing to their significant investments in R&D and open-door policies. While the figures of India also show a steady though slow technological upgradation from low-tech to medium-tech and high-tech exports but when compared to the standards of these emerging economies, they are low. Thus, in order to increase the technological intensity of its exports, there is a need to invest more in high-tech and medium-tech R&D activities and overcome the technological barriers. There is also a need to devise the policies that would make a favorable environment for attracting more outward-oriented foreign direct investment (FDI).