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Catching up in pharmaceuticals: a comparative study of India and Brazil

  • Samira Guennif

    ()

    (CEPN - Centre d'Economie de l'Université Paris Nord (ancienne affiliation) - Université 13 - CNRS)

  • Shyama Ramani

    (Department of Economics, Ecole Polytechnique - Polytechnique - X - CNRS, Institut National de la Recherche Agronomique - Institut national de la recherche agronomique (INRA))

Since the mid-twentieth century, the national objective of India and Brazil has been to develop industrial capabilities in essential sectors such as pharmaceuticals. At the outset, they shared some common features: a considerable period of lax intellectual property rights regimes, large internal market and a reasonably strong cadre of scientists and engineers. However, over fifty years, India has had much more success in building indigenous capabilities in pharmaceuticals than Brazil, at least to date. Why? In exploring the answer to this question, we show that in both countries the design of State policy played a crucial role and the endogenous responses in the national system of innovation consisted of two parts. On the one hand, most of the time, the predicted and desired outcome was partially realized and on the other hand, there were invariably, other unpredicted responses that emerged. The latter unexpected elements, which were specific to the two countries, pushed them along distinctive trajectories.

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Paper provided by HAL in its series CEPN Working Papers with number hal-00632439.

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Date of creation: 2010
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Handle: RePEc:hal:cepnwp:hal-00632439
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  1. Jan Fagerberg & Manuel Godinho, 2003. "Innovation and catching-up," Working Papers 24, Centre for Technology, Innovation and Culture, University of Oslo.
  2. Soete, Luc, 1985. "International diffusion of technology, industrial development and technological leapfrogging," World Development, Elsevier, vol. 13(3), pages 409-422, March.
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  6. Pradhan, Jaya Prakash, 2007. "New Policy Regime and Small Pharmaceutical Firms in India," MPRA Paper 12335, University Library of Munich, Germany.
  7. Richard Nelson, 2008. "Economic Development from the Perspective of Evolutionary Economic Theory," Oxford Development Studies, Taylor & Francis Journals, vol. 36(1), pages 9-21.
  8. Franco Malerba & Luigi Orsenigo, 2002. "Innovation and market structure in the dynamics of the pharmaceutical industry and biotechnology: towards a history-friendly model," Industrial and Corporate Change, Oxford University Press, vol. 11(4), pages 667-703, August.
  9. Lall, Sanjaya, 1974. "The International Pharmaceutical Industry and Less-Developed Countries, with Special Reference to India," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 36(3), pages 143-72, August.
  10. Achilladelis, Basil & Antonakis, Nicholas, 2001. "The dynamics of technological innovation: the case of the pharmaceutical industry," Research Policy, Elsevier, vol. 30(4), pages 535-588, April.
  11. Suma Athreye & Dinar Kale & Shyama V. Ramani, 2009. "Experimentation with strategy and the evolution of dynamic capability in the Indian pharmaceutical sector," Industrial and Corporate Change, Oxford University Press, vol. 18(4), pages 729-759, August.
  12. Santiago-Rodriguez, Fernando, 2010. "Human resource management and learning for innovation: pharmaceuticals in Mexico," MERIT Working Papers 002, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  13. Freeman, Chris, 1995. "The 'National System of Innovation' in Historical Perspective," Cambridge Journal of Economics, Oxford University Press, vol. 19(1), pages 5-24, February.
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