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Strengthening the Export Competitiveness of firms in the Indian Pharmaceutical Industry

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  • Aradhna Aggarwal

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Abstract

This paper attempts to identify the factors that determine the export competitiveness of firms in the Indian pharmaceutical industry. Our findings suggest that the competitiveness of firms depends not only on firm specific advantages but also on government fiscal incentives. Among the firm specific factors, own R&D efforts emerged as one of the prime factors influencing export competitiveness. Furthermore, R&D efforts involved in the modification in process technology were more relevant than the introduction of new products, reflecting the importance of the pursuit of improvement in processes in the industry’s technological trajectory. The paper argues that the government should focus on ruthless export promotion in the TRIPs driven environment.

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Bibliographic Info

Paper provided by eSocialSciences in its series Working Papers with number id:487.

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Date of creation: Apr 2006
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Handle: RePEc:ess:wpaper:id:487

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Related research

Keywords: TRIPS; export competitiveness; pharmaceutical exports; R&D; fiscal incentives; process technology; drug industry; product patents; Economics; Industry;

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  1. Baldwin, Richard & Krugman, Paul, 1989. "Persistent Trade Effects of Large Exchange Rate Shocks," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 104(4), pages 635-54, November.
  2. Andrea Bonaccorsi, 1992. "On the Relationship Between Firm Size and Export Intensity," Journal of International Business Studies, Palgrave Macmillan, vol. 23(4), pages 605-635, December.
  3. Dixit, Avinash K, 1989. "Entry and Exit Decisions under Uncertainty," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 97(3), pages 620-38, June.
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