IDEAS home Printed from https://ideas.repec.org/a/taf/indinn/v15y2008i1p93-114.html
   My bibliography  Save this article

Exploitative and Explorative Learning as a Response to the TRIPS Agreement in Indian Pharmaceutical Firms

Author

Listed:
  • Dinar Kale
  • David Wield

Abstract

The intellectual property regime forms an important part of any government's economic and industrial policies. It is an important regulatory instrument not only affecting industry and market structure but also influencing firm-level learning strategies, especially in knowledge-based industries like pharmaceuticals. Given its crucial role, the strengthening of patent laws as a result of the Trade Related Intellectual Property Rights (TRIPS) agreement presents a significant institutional change for developing country industry. This paper analyses Indian pharmaceutical firms' strategic response to the strengthening of patent law. The research in this paper shows that Indian pharmaceutical firms responded to anticipated disruptive regulatory change by developing competencies incrementally as well as radically. Ambidextrous capability development involved explorative investment in R&D to develop innovative product R&D competencies and in parallel also involved exploitative use of existing process R&D capabilities. This ambidextrous capability development has enabled Indian pharmaceutical firms to survive and compete with multinational corporation (MNC) pharmaceutical firms, showing other catch-up firms a different path of capability development.

Suggested Citation

  • Dinar Kale & David Wield, 2008. "Exploitative and Explorative Learning as a Response to the TRIPS Agreement in Indian Pharmaceutical Firms," Industry and Innovation, Taylor & Francis Journals, vol. 15(1), pages 93-114.
  • Handle: RePEc:taf:indinn:v:15:y:2008:i:1:p:93-114 DOI: 10.1080/13662710701850725
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/13662710701850725
    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. Bingley, Paul & Westergaard-Nielsen, Niels, 2004. "Personnel policy and profit," Journal of Business Research, Elsevier, vol. 57(5), pages 557-563, May.
    2. Klepper, Steven, 2001. "Employee Startups in High-Tech Industries," Industrial and Corporate Change, Oxford University Press, vol. 10(3), pages 639-674, September.
    3. Constance E. Helfat & Marvin B. Lieberman, 2002. "The birth of capabilities: market entry and the importance of pre-history," Industrial and Corporate Change, Oxford University Press, vol. 11(4), pages 725-760, August.
    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. Sariola, Salla & Ravindran, Deapica & Kumar, Anand & Jeffery, Roger, 2015. "Big-pharmaceuticalisation: Clinical trials and Contract Research Organisations in India," Social Science & Medicine, Elsevier, vol. 131(C), pages 239-246.
    2. Guennif, Samira & Ramani, Shyama V., 2012. "Explaining divergence in catching-up in pharma between India and Brazil using the NSI framework," Research Policy, Elsevier, vol. 41(2), pages 430-441.
    3. Basant, Rakesh & Srinivasan, Shuchi, 2015. "Intellectual Property Protection in India and Implications for Health Innovation: Emerging Perspectives," IIMA Working Papers WP2015-04-01, Indian Institute of Management Ahmedabad, Research and Publication Department.

    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:taf:indinn:v:15:y:2008:i:1:p:93-114. 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: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/CIAI20 .

    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.