Innovation, FDI-spillover, and industrial cluster, India_research data

In this study, to analyse the role of horizontal and vertical FDI spillover upon innovation output, measured through patent application and patent granted across firms in a prominent industrial cluster and firms located outside the industrial cluster, we have taken data of Indian innovative manufacturing firms during the period 2007 to 2020. India’s full-fledged implementation of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) started in 2005. However, one of the key variables of the study (the Input-Output Table for India, required to calculate the vertical FDI spillover variable) is available only from 2007. Our initial dataset comprises 10,316 firms across 23 broader two-digit manufacturing industries. These data are further complemented with PatSeer (Patent Search and Analysis Software) data for patent information. The firm-level data are collected from the CMIE Prowess database. Following Hall et al. (2013) and Igna and Venturini (2023), we dropped the firms without a single patent to their credit during our entire study period from the sample. This decision is consistent with the literature as it ensures that all firms face a decision on how to protect their innovation. This process left us with 347 innovative firms, constituting the final sample for the empirical analysis.