A Comparative Analysis of Efficiency and Productivity of the Indian Pharmaceutical Firms: A Malmquist-Meta-Frontier Approach
This paper examines the technical efficiency, technological gap ratio (TGR) and productivity change of Indian pharmaceutical firms across different groups. The groups are formed based on their size, strategies and product varieties. The study indicates that vertically integrated firms that produce both bulk drug and formulation exhibit higher technological innovation and efficiency. However, in contrast to the popular belief, the analysis reveals that increased export earnings do not necessarily lead to higher efficiency. We also find that installing capital-intensive techniques or imported technology propel the technological growth of firms.
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