01755nam a22001457a 4500 527065 527065 240731b ||||| |||| 00| 0 eng d Roy, Gopal Krishna and Dubey, Amaresh 56104 Does higher labour market flexibility discourage R&D? Firm-level evidence from India’s organised manufacturing The Indian Journal of Labour Economics 66(4), Oct-Dec, 2024: p.1119-1130 The empirical evidence on the association between labour market flexibility and research & development (R&D) activities of firms is limited only to developed economies. In this research note, we examine the relationship between labour market flexibility and the R&D decisions of firms in India's organised manufacturing. Using a cross-section of manufacturing firms from the Annual Survey of Industries (ASI) 2015–16 unit-level data, we model the R&D decision of firms as a two-step process. We use Cragg's Double-hurdle model that examines the probability of undertaking R&D in the first stage and the extent of R&D expenditure Amongst the R&D-performing firms in the second stage. Controlling for the firm-specific determinants of R&D expenditure, we find that the spatial variation in labour market flexibility is negatively and significantly associated with the extent of R&D expenditure of R&D-performing Indian firms. We extend the analysis by proxying R&D investment with the factories' net investment in plant and machinery. We found a similar negative correlation between labour market flexibility and the net value of plant and machinery of factories. https://link.springer.com/article/10.1007/s41027-024-00472-x The Indian Journal of Labour Economics LABOUR AR 0 0 ddc 0 0 402160 IIPA IIPA 2024-07-31 66(4), Oct-Dec, 2024: p.1119-1130 AR132531 2024-07-31 AR