IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/12362.html
   My bibliography  Save this paper

Overcoming Innovation Limits through Outward FDI: The Overseas Acquisition Strategy of Indian Pharmaceutical Firms

Author

Listed:
  • Pradhan, Jaya Prakash

Abstract

A host of strategic government policies including a process patent regime led to the rise of Indian pharmaceutical firms with significant process development capabilities. With policies getting liberalized overtime and a product patent regime in place, now firms’ survival crucially depends on their abilities to develop new products and brand creating exercise. Indian pharmaceutical firms with their inadequate product development capabilities are clearly at serious risk. In this context, an increasing number of Indian pharmaceutical firms are observed to be using acquisition as a strategy to overcome their limited innovation strength by accessing new products and their technologies, skills and new markets. Overseas acquisitions represent both challenges and opportunities for Indian pharmaceutical firms aspiring to emerge as global entities based on advance technologies.

Suggested Citation

  • Pradhan, Jaya Prakash, 2008. "Overcoming Innovation Limits through Outward FDI: The Overseas Acquisition Strategy of Indian Pharmaceutical Firms," MPRA Paper 12362, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:12362
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/12362/1/MPRA_paper_12362.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lanjouw, Jean O., 1997. "The Introduction of Pharmaceutical Product Patents in India: "Heartless Exploitation of the Poor and Suffering"?," Center Discussion Papers 28385, Yale University, Economic Growth Center.
    2. Jaya Prakash Pradhan & Abhinav Alakshendra, "undated". "Overseas Acquisition Versus Greenfield Foreign Investment: Which Internationalization Strategy is better for Indian Pharmaceutical Enterprises?," Working Papers 0607, Institute for Studies in Industrial Development (ISID).
    3. Pradhan, Jaya Prakash, 2008. "Indian Direct Investment in Developing Countries: Emerging Trends and Development Impacts," MPRA Paper 12323, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Stucchi, Tamara, 2012. "Emerging market firms’ acquisitions in advanced markets: Matching strategy with resource-, institution- and industry-based antecedents," European Management Journal, Elsevier, vol. 30(3), pages 278-289.
    2. De Beule, Filip & Duanmu, Jing-Lin, 2012. "Locational determinants of internationalization: A firm-level analysis of Chinese and Indian acquisitions," European Management Journal, Elsevier, vol. 30(3), pages 264-277.
    3. Bhargavi Jayanthi & S.N.V. Sivakumar & Arunima Haldar, 2016. "Cross-border Acquisitions and Host Country Determinants: Evidence from Indian Pharmaceutical Companies," Global Business Review, International Management Institute, vol. 17(3), pages 684-699, June.
    4. Dohse, Dirk & Hassink, Robert & Klaerding, Claudia, 2012. "Emerging multinationals, international knowledge flows and economic geography: A research agenda," Kiel Working Papers 1776, Kiel Institute for the World Economy (IfW Kiel).
    5. Suma Athreye & Sandeep Kapur, 2015. "Capital and Technology Flows: changing technology-acquisition strategies in developing countries," Birkbeck Working Papers in Economics and Finance 1511, Birkbeck, Department of Economics, Mathematics & Statistics.
    6. Jaya Prakash Pradhan, 2010. "Strategic Asset-Seeking Activities of Emerging Multinationals: Perspectives of Foreign Acquisitions by Indian Pharmaceutical MNEs," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 1(2).
    7. Sandra Lancheros, 2016. "Exports, Outward FDI and Technology Upgrading: Firm Level Evidence from India," Journal of Development Studies, Taylor & Francis Journals, vol. 52(10), pages 1415-1430, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bhargavi Jayanthi & S.N.V. Sivakumar & Arunima Haldar, 2016. "Cross-border Acquisitions and Host Country Determinants: Evidence from Indian Pharmaceutical Companies," Global Business Review, International Management Institute, vol. 17(3), pages 684-699, June.
    2. Jaya Prakash Pradhan, 2010. "Strategic Asset-Seeking Activities of Emerging Multinationals: Perspectives of Foreign Acquisitions by Indian Pharmaceutical MNEs," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 1(2).
    3. Lee Branstetter & Raymond Fisman & C. Fritz Foley, 2005. "Do Stronger Intellectual Property Rights Increase International Technology Transfer? Empirical Evidence from U.S. Firm-Level Data," NBER Working Papers 11516, National Bureau of Economic Research, Inc.
    4. Bond, Eric W. & Saggi, Kamal, 2014. "Compulsory licensing, price controls, and access to patented foreign products," Journal of Development Economics, Elsevier, vol. 109(C), pages 217-228.
    5. Vishwasrao, Sharmila & Gupta, Srabana & Benchekroun, Hassan, 2007. "Optimum tariffs and patent length in a model of North-South technology transfer," International Review of Economics & Finance, Elsevier, vol. 16(1), pages 1-14.
    6. Billette de Villemeur, Etienne & Ruble, Richard & Versaevel, Bruno, 2014. "Innovation and imitation incentives in dynamic duopoly," MPRA Paper 59453, University Library of Munich, Germany.
    7. Hermann Sebastian Dehnen & Jan H. van Dinther & Norbert Koubek, 2013. "From emerging economies toward the Emerging Triad," Schumpeter Discussion Papers SDP13008, Universitätsbibliothek Wuppertal, University Library.
    8. Patricia M. Danzon & Eric L. Keuffel, 2014. "Regulation of the Pharmaceutical-Biotechnology Industry," NBER Chapters, in: Economic Regulation and Its Reform: What Have We Learned?, pages 407-484, National Bureau of Economic Research, Inc.
    9. Anwar Mohammad Amir, 2014. "Indian foreign direct investments in Africa: a geographical perspective," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 26(26), pages 1-15, December.
    10. Chatterjee, Chirantan & Kubo, Kensuke & Pingali, Viswanath, 2015. "The consumer welfare implications of governmental policies and firm strategy in markets for medicines," Journal of Health Economics, Elsevier, vol. 44(C), pages 255-273.
    11. Kensuke Kubo, 2011. "Explaining vertical integration in the generic pharmaceutical industry," Discussion Papers 11-02, Indian Statistical Institute, Delhi.
    12. Michele Boldrin & David K. Levine, 2013. "The Case against Patents," Journal of Economic Perspectives, American Economic Association, vol. 27(1), pages 3-22, Winter.
    13. Hudson, John & Minea, Alexandru, 2013. "Innovation, Intellectual Property Rights, and Economic Development: A Unified Empirical Investigation," World Development, Elsevier, vol. 46(C), pages 66-78.
    14. Lerner, Josh & Zhu, Feng, 2007. "What is the impact of software patent shifts? Evidence from Lotus v. Borland," International Journal of Industrial Organization, Elsevier, vol. 25(3), pages 511-529, June.
    15. Panle Jia & Pinelopi K. Goldberg & Shubham Chaudhuri, 2006. "Estimating the Effects of Global Patent Protection in Pharmaceuticals: A Case Study of Quinolones in India," American Economic Review, American Economic Association, vol. 96(5), pages 1477-1514, December.
    16. Ijaz Nabi & Manjula Luthria, 2002. "Building Competitive Firms : Incentives and Capabilities," World Bank Publications - Books, The World Bank Group, number 15220, December.
    17. N. Lalitha, 2006. "India’s Pharmaceutical Industry in the WTO Regime: A SWOT Analysis," Working Papers id:453, eSocialSciences.
    18. Jean O. Lanjouw & Iain Cockburn, 2000. "Do Patents Matter?: Empirical Evidence after GATT," NBER Working Papers 7495, National Bureau of Economic Research, Inc.
    19. Sunil Kanwar & Bronwyn H. Hall, 2015. "The Market Value of R&D in Weak Innovation Regimes: Evidence from India," NBER Working Papers 21196, National Bureau of Economic Research, Inc.
    20. Iftekhar Hasan & Fahad Khalil & Xian Sun, 2017. "The Impacts of Intellectual Property Rights Protection on Cross-Border M&As," Quarterly Journal of Finance (QJF), World Scientific Publishing Co. Pte. Ltd., vol. 7(03), pages 1-35, September.

    More about this item

    Keywords

    Indian pharmaceutical industry; Outward FDI; Overseas Acquisition;
    All these keywords.

    JEL classification:

    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:12362. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.