TY - BOOK ID - 134648505 TI - Effects of Licensing Reform on Firm Innovation : Evidence from India PY - 2011 PB - Washington, D.C., The World Bank, DB - UniCat KW - E-Business KW - Industrial policy KW - Industry KW - Innovation KW - Knowledge for Development KW - Labor Policies KW - Macroeconomics and Economic Growth KW - Markets and Market Access KW - Microfinance KW - Regulatory environment KW - Research and development KW - India UR - https://www.unicat.be/uniCat?func=search&query=sysid:134648505 AB - The regulatory environment in a country can affect firm performance. This study investigates the impact of a particular regulation, namely license requirements for certain firm activities, on the innovation performance of Indian firms. First it presents a model of firm and industry evolution that explains the dynamics of multi-product firms. Then, using a firm level panel data set, it shows that removal of license requirements led to roughly 5 percentage points faster innovation rates where innovation is measured as introduction of new product varieties that had not existed in the market. The results are robust to inclusion of controls for the other policy reforms that occurred during the period of licensing reform. ER -