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Digital Innovation, Localisation and Productive Capabilities in the South African Pharmaceutical Industry

Author

Listed:
  • Lorenza Monaco

    (Institute for Innovation and Public Purpose, University College London. Author-Workplace-Name: South African Research Chair in Industrial Development, University of Johannesburg)

  • Alexis Habiyaremye

    (South African Research Chair in Industrial Development, University of Johannesburg)

Abstract

The pharmaceutical industry is one of the most innovative sectors in terms of R&D investment and new products brought to the market every year. Pharmaceutical innovation, with its complexity and public health implications, is associated with one of the largest numbers of patents and intellectual property rights, which in turn have a significant effect on access to medicines and technology transfer across firms and countries. As part of a broader research on “Productive Skills in the 4th Industrial Revolution†, this study of the South African pharmaceutical industry aims to assess its current state in terms of the acquisition of advanced technologies, their effect on manufacturing and employment, and the actual obstacles to the further localisation of production. Together with limits and constraints to further expansion, the paper also highlights positive cases of local innovation and institutional collaboration that could potentially be replicated. Ultimately, the study provides a picture of a small but dynamic industry, with structural weakness and constraints, but also poles of excellence and successful cases of collaborative innovation

Suggested Citation

  • Lorenza Monaco & Alexis Habiyaremye, 2024. "Digital Innovation, Localisation and Productive Capabilities in the South African Pharmaceutical Industry," SARChI-ID Working Papers 202404, SARChI Industrial Development (SARChI-ID), University of Johannesburg (UJ), revised Feb 2024.
    • Handle: RePEc:adz:wpaper:202404
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    Keywords

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    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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