IDEAS home Printed from https://ideas.repec.org/a/oup/indcch/v18y2009i2p295-323.html
   My bibliography  Save this article

Internationalization and technological leapfrogging in the pharmaceutical industry

Author

Listed:
  • Suma Athreye
  • Andrew Godley

Abstract

Internationalization is a useful strategy for gaining firm-specific technological advantages especially during periods of technological discontinuity as the pharmaceutical industry illustrates. The antibiotics revolution in the 1940s saw laggard US firms scrambling to gain capabilities in antibiotics. The possibilities of non-chemical routes to new drug discovery in the 1990s saw Indian generic drug manufacturers attempting to develop new drug discovery capabilities. This article compares the leapfrogging strategies adopted by US and Indian firms and shows that in both periods internationalization strategies were central to the technological strategies of both groups of firms. Copyright 2009 , Oxford University Press.

Suggested Citation

  • Suma Athreye & Andrew Godley, 2009. "Internationalization and technological leapfrogging in the pharmaceutical industry," Industrial and Corporate Change, Oxford University Press, vol. 18(2), pages 295-323, April.
  • Handle: RePEc:oup:indcch:v:18:y:2009:i:2:p:295-323
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/icc/dtp002
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Dilip Mookherjee, 2006. "Decentralization, Hierarchies, and Incentives: A Mechanism Design Perspective," Journal of Economic Literature, American Economic Association, pages 367-390.
    2. Malerba, Franco, 1992. "Learning by Firms and Incremental Technical Change," Economic Journal, Royal Economic Society, vol. 102(413), pages 845-859, July.
    3. Athey, Susan. & Stern, Scott, 1969-, 1998. "An empirical framework for testing theories about complementarity in orgaziational design," Working papers WP 4022-98., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    4. Milgrom, Paul & Roberts, John, 1995. "Complementarities and fit strategy, structure, and organizational change in manufacturing," Journal of Accounting and Economics, Elsevier, vol. 19(2-3), pages 179-208, April.
    5. Massini, Silvia & Lewin, Arie Y. & Numagami, Tsuyoshi & Pettigrew, Andrew M., 2002. "The evolution of organizational routines among large Western and Japanese firms," Research Policy, Elsevier, pages 1333-1348.
    6. Giovanni Dosi & Daniel A. Levinthal & Luigi Marengo, 2003. "Bridging contested terrain: linking incentive-based and learning perspectives on organizational evolution," Industrial and Corporate Change, Oxford University Press, pages 413-436.
    7. Nicholas Bloom & John Van Reenen, 2007. "Measuring and Explaining Management Practices Across Firms and Countries," The Quarterly Journal of Economics, Oxford University Press, pages 1351-1408.
    8. Richard Whittington & Andrew Pettigrew & Simon Peck & Evelyn Fenton & Martin Conyon, 1999. "Change and Complementarities in the New Competitive Landscape: A European Panel Study, 1992–1996," Organization Science, INFORMS, vol. 10(5), pages 583-600, October.
    9. John Godard & John T. Delaney, 2000. "Reflections on the “High Performance†Paradigm's Implications for Industrial Relations as a Field," ILR Review, Cornell University, ILR School, vol. 53(3), pages 482-502, April.
    10. Massini, Silvia & Lewin, Arie Y. & Greve, Henrich R., 2005. "Innovators and imitators: Organizational reference groups and adoption of organizational routines," Research Policy, Elsevier, pages 1550-1569.
    11. David J. Teece, 2008. "Firm organization, industrial structure, and technological innovation," World Scientific Book Chapters,in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 11, pages 265-296 World Scientific Publishing Co. Pte. Ltd..
    12. Ikujiro Nonaka, 1994. "A Dynamic Theory of Organizational Knowledge Creation," Organization Science, INFORMS, vol. 5(1), pages 14-37, February.
    13. Ichniowski, Casey & Shaw, Kathryn & Prennushi, Giovanna, 1997. "The Effects of Human Resource Management Practices on Productivity: A Study of Steel Finishing Lines," American Economic Review, American Economic Association, pages 291-313.
    14. Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 2002. "Information Technology, Workplace Organization, and the Demand for Skilled Labor: Firm-Level Evidence," The Quarterly Journal of Economics, Oxford University Press, vol. 117(1), pages 339-376.
    15. D, Acemoglu & Philippe Aghion & Claire Lelarge & John Van Reenen & Fabrizzio Zilibotti, 2006. "Technology, Information and the Decentralization of the Firm," Working Papers 2006-12, Center for Research in Economics and Statistics.
    16. Giovanni Dosi & Luigi Marengo, 2007. "On the Convergence of Evolutionary and Behavioral Theories of Organizations: A Tentative Roadmap," LEM Papers Series 2007/01, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    17. Eve Caroli & John Van Reenen, 2001. "Skill-Biased Organizational Change? Evidence from A Panel of British and French Establishments," The Quarterly Journal of Economics, Oxford University Press, vol. 116(4), pages 1449-1492.
    18. Mats Alvesson & Dan Kärreman, 2007. "Unraveling HRM: Identity, Ceremony, and Control in a Management Consulting Firm," Organization Science, INFORMS, vol. 18(4), pages 711-723, August.
    19. Daron Acemoglu & Philippe Aghion & Claire Lelarge & John Van Reenen & Fabrizio Zilibotti, 2007. "Technology, Information, and the Decentralization of the Firm," The Quarterly Journal of Economics, Oxford University Press, pages 1759-1799.
    20. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, pages 343-373.
    21. Harvie Ramsay & Dora Scholarios & Bill Harley, 2000. "Employees and High-Performance Work Systems: Testing inside the Black Box," British Journal of Industrial Relations, London School of Economics, vol. 38(4), pages 501-531, December.
    22. Malerba, Franco & Orsenigo, Luigi, 1997. "Technological Regimes and Sectoral Patterns of Innovative Activities," Industrial and Corporate Change, Oxford University Press, pages 83-117.
    23. W. Mark Fruin & Masao Nakamura, 1997. "Top-down Production Management: A Recent Trend in the Japanese Productivity-enhancement Movement," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 18(2), pages 131-139.
    24. Richard R Nelson & Alexander Peterhansl & Bhaven Sampat, 2004. "Why and how innovations get adopted: a tale of four models," Industrial and Corporate Change, Oxford University Press, pages 679-699.
    25. Galia, Fabrice & Legros, Diego, 2004. "Complementarities between obstacles to innovation: evidence from France," Research Policy, Elsevier, pages 1185-1199.
    26. Michie, Jonathan & Sheehan, Maura, 1999. "HRM Practices, R&D Expenditure and Innovative Investment: Evidence from the UK's 1990 Workplace Industrial Relations Survey (WIRS)," Industrial and Corporate Change, Oxford University Press, pages 211-234.
    27. Castellacci, Fulvio, 2008. "Technological paradigms, regimes and trajectories: Manufacturing and service industries in a new taxonomy of sectoral patterns of innovation," Research Policy, Elsevier, pages 978-994.
    28. Coriat, Benjamin & Weinstein, Olivier, 2002. "Organizations, firms and institutions in the generation of innovation," Research Policy, Elsevier, pages 273-290.
    29. Castellacci, Fulvio, 2008. "Technological paradigms, regimes and trajectories: Manufacturing and service industries in a new taxonomy of sectoral patterns of innovation," Research Policy, Elsevier, pages 978-994.
    30. repec:dau:papers:123456789/10093 is not listed on IDEAS
    31. Dilip Mookherjee, 2006. "Decentralization, Hierarchies, and Incentives: A Mechanism Design Perspective," Journal of Economic Literature, American Economic Association, vol. 44(2), pages 367-390, June.
    32. Wang, Q. & von Tunzelmann, N., 2000. "Complexity and the functions of the firm: breadth and depth," Research Policy, Elsevier, pages 805-818.
    33. Nathalie Greenan, 2003. "Organisational change, technology, employment and skills: an empirical study of French manufacturing," Cambridge Journal of Economics, Oxford University Press, vol. 27(2), pages 287-316, March.
    34. Casey Ichniowski & Kathryn Shaw, 2003. "Beyond Incentive Pay: Insiders' Estimates of the Value of Complementary Human Resource Management Practices," Journal of Economic Perspectives, American Economic Association, pages 155-180.
    35. Eric von Hippel, 1994. ""Sticky Information" and the Locus of Problem Solving: Implications for Innovation," Management Science, INFORMS, pages 429-439.
    36. Giovanni Dosi & Luigi Marengo, 2007. "Perspective---On the Evolutionary and Behavioral Theories of Organizations: A Tentative Roadmap," Organization Science, INFORMS, vol. 18(3), pages 491-502, June.
    37. James W. Dean & Se Joon Yoon & Gerald I. Susman, 1992. "Advanced Manufacturing Technology and Organization Structure: Empowerment or Subordination?," Organization Science, INFORMS, vol. 3(2), pages 203-229, May.
    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. repec:wip:wpaper:3 is not listed on IDEAS
    2. Stucchi, Tamara, 2012. "Emerging market firms’ acquisitions in advanced markets: Matching strategy with resource-, institution- and industry-based antecedents," European Management Journal, Elsevier, pages 278-289.
    3. David E. Hojman, 2016. "Getting Innovation Right: The Key to Happiness and Flourishing?," Homo Oeconomicus: Journal of Behavioral and Institutional Economics, Springer, vol. 33(4), pages 311-316, December.
    4. Dev Nathan & Sandip Sarkar, 2013. "Innovation and upgrading in global production networks," Brooks World Poverty Institute Working Paper Series ctg-2013-23, BWPI, The University of Manchester.
    5. repec:spr:scient:v:111:y:2017:i:2:d:10.1007_s11192-017-2329-7 is not listed on IDEAS
    6. 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.
    7. repec:spr:manint:v:52:y:2012:i:2:d:10.1007_s11575-012-0134-3 is not listed on IDEAS
    8. Alessia Amighini & Claudio Cozza & Elisa Giuliani & Roberta Rabellotti & Vittoria Scalera, 2015. "Multinational enterprises from emerging economies: what theories suggest, what evidence shows. A literature review," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 42(3), pages 343-370, September.
    9. Yuichi Furukawa, 2015. "Leapfrogging cycles in international competition," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), pages 401-433.
    10. Giuliani, Elisa & Gorgoni, Sara & Günther, Christina & Rabellotti, Roberta, 2014. "Emerging versus advanced country MNEs investing in Europe: A typology of subsidiary global–local connections," International Business Review, Elsevier, pages 680-691.
    11. Valeria, Gattai & Rajssa, Mechelli & Piergiovanna, Natale, 2016. "FDI and Heterogeneous Firms: Evidence from BRIC Countries," Working Papers 322, University of Milano-Bicocca, Department of Economics, revised 18 Jan 2016.
    12. repec:kap:asiapa:v:34:y:2017:i:4:d:10.1007_s10490-017-9527-y is not listed on IDEAS
    13. Suma Athreye & Yong Yang, 2011. "Disembodied Knowledge Flows in the World Economy," WIPO Economic Research Working Papers 03, World Intellectual Property Organization - Economics and Statistics Division, revised Dec 2011.
    14. Buckley, Peter J. & Munjal, Surender & Enderwick, Peter & Forsans, Nicolas, 2016. "Cross-border acquisitions by Indian multinationals: Asset exploitation or asset augmentation?," International Business Review, Elsevier, pages 986-996.
    15. De Beule, Filip & Sels, Annabel, 2016. "Do innovative emerging market cross-border acquirers create more shareholder value? Evidence from India," International Business Review, Elsevier, pages 604-617.

    More about this item

    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:oup:indcch:v:18:y:2009:i:2:p:295-323. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum). General contact details of provider: https://academic.oup.com/icc .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.