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Product Cycles, Innovation, and Exports: A Study of Indian Pharmaceuticals

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  • Chadha, Alka

Abstract

Summary This paper studies the product cycle and neo-technology theories of trade in the context of generic pharmaceuticals. It analyzes the export performance of 131 Indian pharmaceutical firms for the period 1989-2004. The results indicate that technology proxied by foreign patent rights has a positive impact on exports. This suggests that developing countries with innovation skills for process innovations are capable of penetrating international markets in the later stages of the product cycle by using patents, which were the barriers to trade in the early stages of the product cycle.

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  • Chadha, Alka, 2009. "Product Cycles, Innovation, and Exports: A Study of Indian Pharmaceuticals," World Development, Elsevier, vol. 37(9), pages 1478-1483, September.
    • Handle: RePEc:eee:wdevel:v:37:y:2009:i:9:p:1478-1483
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    2. Karabag, Solmaz Filiz & Tuncay-Celikel, Asli & Berggren, Christian, 2011. "The Limits of R&D Internationalization and the Importance of Local Initiatives: Turkey as a Critical Case," World Development, Elsevier, vol. 39(8), pages 1347-1357, August.
    3. Luqman, Muhammad & Khan, Karim, 2022. "Does Innovation Affect Intensive and Extensive Margins of Exports? A Firm-Level Analysis," Journal of Economic Development, The Economic Research Institute, Chung-Ang University, vol. 47(3), pages 125-145, September.
    4. Fábio Batista & José Eduardo Matos & Miguel Costa Matos, 2017. "Assessing the Competitiveness of the Portuguese Footwear Sector," GEE Papers 0066, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Feb 2017.
    5. Alfons Palangkaraya, 2013. "On the Relationship between Innovation and Export: The Case of Australian SMEs," Melbourne Institute Working Paper Series wp2013n04, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    6. V. Pradeep & Mita Bhattacharya & Jong-Rong Chen, 2017. "Spillover Effects of Research and Development, Exports and Foreign Investment on Productivity," Journal of South Asian Development, , vol. 12(1), pages 18-41, April.
    7. Francesco Bogliacino & Giulio Perani & Mario Pianta & Stefano Supino, 2010. "Innovation and Development. The Evidence from Innovation Surveys," Working Papers of BETA 2010-13, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    8. Sidheswar Panda & Ruchi Sharma, 2023. "Does Innovation Spur Export Performance across Countries? An Investigation from Meta-regression Analysis," Millennial Asia, , vol. 14(3), pages 341-359, September.
    9. David Audretsch & Mark Sanders & Lu Zhang, 2021. "International product life cycles, trade and development stages," The Journal of Technology Transfer, Springer, vol. 46(5), pages 1630-1673, October.
    10. Mario Pianta, 2018. "Technology and Employment: Twelve Stylised Facts for the Digital Age," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 61(2), pages 189-225, June.
    11. Ana Rita Marques & Cátia Silva, 2018. "Assessing the Competitiveness of the Portuguese Chemical Sector," GEE Papers 0110, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Sep 2018.
    12. Barasa, L. & Kinyanjui, B. & Knoben, Joris & Kimuyu, P. & Vermeulen, P.A.M., 2016. "Export and Innovation in Sub-Saharan Africa," Other publications TiSEM 5243a1d6-7a6a-4871-b4f2-7, Tilburg University, School of Economics and Management.
    13. Alfons PALANGKARAYA, 2012. "The Link between Innovation and Export: Evidence from Australia 's Small and Medium Enterprises," Working Papers DP-2012-08, Economic Research Institute for ASEAN and East Asia (ERIA).
    14. Ana Rita Gomes & Horácio Crespo Faustino, 2011. "Export and Innovation in SMEs and Large Firms: The main determinants," Working Papers Department of Economics 2011/02, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    15. Anil Nair & Orhun Guldiken & Stav Fainshmidt & Amir Pezeshkan, 2015. "Innovation in India: A review of past research and future directions," Asia Pacific Journal of Management, Springer, vol. 32(4), pages 925-958, December.
    16. Marco Grazzi & Nanditha Mathew & Daniele Moschella, 2021. "Making one’s own way: jumping ahead in the capability space and exporting among Indian firms," Journal of Evolutionary Economics, Springer, vol. 31(3), pages 931-957, July.
    17. Ray, Sangeeta & Ray, Pradeep Kanta, 2021. "Innovation strategy of latecomer firms under tight appropriability regimes: The Indian pharmaceuticals industry," Journal of International Management, Elsevier, vol. 27(1).

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