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The Sectoral system of innovation of Indian pharmaceutical industry

Author

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  • Sunil Mani

    (Centre for Development Studies
    Institute of Economic Growth)

Abstract

The paper undertakes a detailed mapping out of the sectoral system of innovation of India's pharmaceutical industry. The industry is one of the most innovative industries in the Indian manufacturing sector. The innovation system of the industry has three strong pillars: very pro active government policy regime especially with respect to intellectual property right, strong government research institutes and private sector enterprises which have invested in innovation. The TRIPS compliance of the intellectual property right regime making it mandatory for pharmaceutical products to be patented has not reduced the innovation capability of the industry although it has not made them work on R&D projects that may lead to the discovery of drugs for neglected diseases of the developing world. Although the innovation system has the capability to develop new chemical entities the two main components of the innovation system, namely the enterprises and the Government Research Institutes does not appear to be having all the requisite capabilities to bring a new drug to the market. Although the state has been very proactive with respect to this industry, this is an area where public policy support is still required.

Suggested Citation

  • Sunil Mani, 2006. "The Sectoral system of innovation of Indian pharmaceutical industry," Centre for Development Studies, Trivendrum Working Papers 382, Centre for Development Studies, Trivendrum, India.
    • Handle: RePEc:ind:cdswpp:382
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    Cited by:

    1. Andrea Mantovani & Alireza Naghavi, 2010. "Parallel Imports and Innovation in an Emerging Economy," Center for Economic Research (RECent) 038, University of Modena and Reggio E., Dept. of Economics "Marco Biagi".
    2. Chiranjib Neogi & Atsuko Kamiike & Takahiro Sato, 2012. "Identification of Factors Behind Performance of Pharmaceutical Industries in India," Discussion Paper Series DP2012-23, Research Institute for Economics & Business Administration, Kobe University.
    3. Herstatt, Cornelius & Tiwari, Rajnish & Buse, Stephan, 2008. "India's National Innovation System: Key elements and corporate perspectives," Working Papers 51, Hamburg University of Technology (TUHH), Institute for Technology and Innovation Management.
    4. Vértesy, Dániel, 2017. "Preconditions, windows of opportunity and innovation strategies: Successive leadership changes in the regional jet industry," Research Policy, Elsevier, vol. 46(2), pages 388-403.
    5. Thomas Eimer & Susanne Lütz, 2010. "Developmental states, civil society, and public health: Patent regulation for HIV/AIDS pharmaceuticals in India and Brazil," Regulation & Governance, John Wiley & Sons, vol. 4(2), pages 135-153, June.
    6. Lakhwinder Singh & Deepika Chawla, 2018. "Interconnection between R&D and Industrial Production Structure: The Experience of India," Millennial Asia, , vol. 9(3), pages 278-294, December.
    7. Sam Crosby & Esther Rajadurai & Stephen Jan & Richard Holden & Bruce Neal, 2022. "The effects of government policies targeting ethics and governance processes on clinical trial activity and expenditure: a systematic review," Palgrave Communications, Palgrave Macmillan, vol. 9(1), pages 1-12, December.
    8. Iyer, Chidambaran G., 2016. "Impact of entrepreneur on the sectoral system of innovation: Case study of the Indian crude oil refining industry," Technological Forecasting and Social Change, Elsevier, vol. 102(C), pages 102-111.

    More about this item

    Keywords

    Sectoral system of innovation; pharmaceutical industry; TRIPS; innovation;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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