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Title: R&D Spending and the Rewards to Human Capital in India’s IT Sector
Authors: Sumit K Majumdar
Issue/Year: Oct-2013
Section: Research
Abstract: R&D is a human capital-intensive activity and firms engaging in such activities are expected to have a higher wage share, signaling financial commitment to people assets. This paper examines the links between R&D spending of Indian information technology and software sector firms and their wage share for a continuous period from 2000-01 to 2005-06. The negative relationship noted in the analysis implies that rewards to human capital are not forthcoming for activities related to R&D efforts in Indian firms.
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