Learning across policy regimes: A case study of the Indian automobile industry

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Learning is an important factor that explains inter-firm differences in performances over time. This paper analyses the impact of government policy regime on the learning abilities of firms and markets over time. Through a case study analysis of the Indian automotive industry, this paper develops three hypotheses relating policy regimes with learning strategies of firms. This paper tests these hypotheses through a model of learning using a panel data for the Indian automotive industry. The study finds that speed of knowledge assimilation is more important in the liberalised policy regime vis-à-vis protection when knowledge assimilation per se was a more important economic goal. Copyright © 2012 Inderscience Enterprises Ltd.