Global Insights

Outward FDI and Knowledge Flows: A Study of the Indian Automotive Sector

Screenshot 1090
TypeConference presentation
EventFGKS Third Annual Conference — Globalization of Knowledge Development & Delivery
Organized byForum for Global Knowledge Sharing & ISID
LocationNew Delhi, India
DateOctober 17–18, 2008
Presented withNeelam Singh
SlidesDownload the presentation (PDF)

A talk delivered (with Neelam Singh) at the Third Annual International Conference of the Forum for Global Knowledge Sharing, New Delhi (October 17–18, 2008).

In short: How outward investment by Indian automotive firms — acquisitions and greenfield alike — opened a two-way flow of knowledge: access to global technology and brands coming in, low-cost engineering capability going out.

About the talk

This presentation, delivered jointly with Neelam Singh, examined how outward foreign direct investment (OFDI) by Indian automotive firms facilitates cross-border knowledge flows between home and host countries. Drawing on case studies of major automotive groups alongside econometric analysis of a large sample of firms, the talk argued that investing abroad is not just about markets — it is an important channel through which emerging-market firms upgrade their own technological capabilities.

From the conference

What the talk covered

  • Knowledge flows run both ways — Indian firms gained access to global R&D facilities, advanced technologies, and market knowledge through OFDI, while transferring low-cost engineering capability to host operations.
  • Strategic acquisitions as capability shortcuts — deals such as Tata Motors’ acquisition of Jaguar Land Rover brought iconic brands, intellectual property, and advanced engineering centres within reach.
  • A measurable effect on innovation — the econometric analysis indicated that OFDI is associated with higher R&D intensity among Indian automotive firms, via spillovers and learning from overseas operations.
  • Both routes work — greenfield investments and acquisitions in developed markets each helped firms plug into technology clusters and innovation networks, with subsidiaries and joint ventures serving as channels for knowledge to flow back to India.

Get the slides

The full presentation is available as a PDF:

⇩  Download the presentation (PDF)

Related research on this site

This presentation draws on the author’s published work, co-authored with Neelam Singh:


← Back to all presentations

Leave a Reply

Your email address will not be published. Required fields are marked *