Innovation patterns, limits to learning and the pathway of neoliberal globalisation: evidence from Indian pharmaceutical multinationals

The article assesses the pathway of neoliberal globalisation for its impact on firm-specific innovation patterns, the ties under formation for the acquisition of resources and assets and the emerging limits to learning for the Indian pharmaceutical multinationals. Evaluation indicates the persistence of sub-optimal conditions at home for product innovation due to insufficient augmentation of firm specific assets and lack of establishment of interactions and linkages by these firms within the national borders. Their acquisitions, alliances and collaborations were focused on gaining largely the access to complementary resources needed for marketing and production of off-patent generic pharmaceuticals. Linkages formed with foreign firms have failed to take-off as a significant external mechanism of technological learning. Path dependent systemic failures are observed to have impacted on the coevolving national system of innovation through the subcritical in-house product innovation capabilities, underdevelopment of local learning networks and lack of attention to domestic demand.