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

  • Chadha, Alka
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    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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    File URL: http://www.sciencedirect.com/science/article/B6VC6-4VVRCTW-1/2/448cca6dc41a619353ea20a8fc83a819
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    Article provided by Elsevier in its journal World Development.

    Volume (Year): 37 (2009)
    Issue (Month): 9 (September)
    Pages: 1478-1483

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    Handle: RePEc:eee:wdevel:v:37:y:2009:i:9:p:1478-1483
    Contact details of provider: Web page: http://www.elsevier.com/locate/worlddev

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    1. Krugman, Paul, 1979. "A Model of Innovation, Technology Transfer, and the World Distribution of Income," Journal of Political Economy, University of Chicago Press, vol. 87(2), pages 253-66, April.
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