Exploitative and Explorative Learning as a Response to the TRIPS Agreement in Indian Pharmaceutical Firms
AbstractThe intellectual property regime forms an important part of any government's economic and industrial policies. It is an important regulatory instrument not only affecting industry and market structure but also influencing firm-level learning strategies, especially in knowledge-based industries like pharmaceuticals. Given its crucial role, the strengthening of patent laws as a result of the Trade Related Intellectual Property Rights (TRIPS) agreement presents a significant institutional change for developing country industry. This paper analyses Indian pharmaceutical firms' strategic response to the strengthening of patent law. The research in this paper shows that Indian pharmaceutical firms responded to anticipated disruptive regulatory change by developing competencies incrementally as well as radically. Ambidextrous capability development involved explorative investment in R&D to develop innovative product R&D competencies and in parallel also involved exploitative use of existing process R&D capabilities. This ambidextrous capability development has enabled Indian pharmaceutical firms to survive and compete with multinational corporation (MNC) pharmaceutical firms, showing other catch-up firms a different path of capability development.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Taylor & Francis Journals in its journal Industry and Innovation.
Volume (Year): 15 (2008)
Issue (Month): 1 ()
Contact details of provider:
Web page: http://www.tandfonline.com/CIAI20
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Guennif, Samira & Ramani, Shyama V., 2012. "Explaining divergence in catching-up in pharma between India and Brazil using the NSI framework," Research Policy, Elsevier, vol. 41(2), pages 430-441.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If references are entirely missing, you can add them using this form.