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Globalization of the Indian Pharmaceutical Industry: Implications for Innovation

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  • Dinesh Abrol

    ()
    (National Institute of Science, Technology and Development Studies (NISTADS), India)

  • Pramod Prajapati

    ()
    (National Institute of Science, Technology and Development Studies (NISTADS), India)

  • Nidhi Singh

    ()
    (National Institute of Science, Technology and Development Studies (NISTADS), India)

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    Abstract

    In this article we create an industry-wide metrics of innovation based on the characterization of learning potential of foreign direct invest-ment (FDI), technology acquisition and in-house R&D, analysis of patenting activity, assessment of R&D directions and evaluation of innovation outcomes. Our purpose is to reflect on strategies adopted for learning, competence building and innovation and for creating complementarities and linkages within India’s pharmaceutical industry during the post- Trade Related Intellectual Property Rights (TRIPs) period. With India facing the challenge of constituting pathways and strategies for accelerated learning, we also explore through whose actions, types of strategies and routes of growth have the limits of Indian pharmaceutical industry innovation been reached within one decade. Finally, how and with what kind of policy design can the Indian state and society intervene to push the frontier of innovation further within this industry. Indian state and business have chosen globalization pathways with specific implications for innovation. We assess systemic connections of these implications, suggesting that for a significant change in domestic and foreign pharmaceutical firms’ orientation to disease, as reflected in outcomes of their R&D investment activity, there also has to be a major focus on pathways toward innovation for domestic markets.

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    Bibliographic Info

    Article provided by Faculty of Economics and Administration, University of Malaya in its journal International Journal of Institutions and Economies.

    Volume (Year): 3 (2011)
    Issue (Month): 2 (July)
    Pages: 327-365

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    Handle: RePEc:umk:journl:v:3:y:2011:i:2:p:327-365

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    Related research

    Keywords: - globalization; innovation; learning; pathways; pharmaceuticals;

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    1. Athreye, Suma & Kale, Dinar & Ramani, Shyama V., 2008. "Experimentation with Strategy and the Evolution of Dynamic Capability in the Indian Pharmaceutical Sector," MERIT Working Papers 041, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
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