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An assessment of traditional knowledge-based medicine companies and western medicine companies: a comparative study of efficiency

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Listed:
  • sethi, Kalyani
  • mishra, Dr. Bikash Ranjan

Abstract

Indian traditional medicine comprises indigenous medical traditions (Bode, 2006). This ancient Indian predictive and personalized medicine system is still relevant today (Lemonnier, 2017). Yet, this medical system suffers many challenges due to the practice of western medicine. Therefore, there is a big need to study the existence and performance of these medicines through different companies. Coming to western medicine has made significant progress around the world over the past century. Many life-saving new drugs have been discovered to deal with various infectious and fatal diseases. Despite the undeniable benefits of modern medicine, which relies on scientific assays and results to establish the diagnosis and fight disease, a large portion of the world continues to rely on modern forms of Traditional, Complementary, and Alternative Medicines (CAM). Therefore, our paper focuses on studying the efficiency across Traditional Knowledge-based (TKBM) and Western Medicine (WM) companies using the data envelopment analysis (DEA) model. The study is a comparative study of ten years, from 2009-2018, using the CMIE Prowess IQ database. The second test concentrates on the effects of some firm-specific and financial variables on the efficiency of the respective companies. Lastly, the paper suggests that adopting cost management techniques will help these companies to improve their profit.

Suggested Citation

  • sethi, Kalyani & mishra, Dr. Bikash Ranjan, 2023. "An assessment of traditional knowledge-based medicine companies and western medicine companies: a comparative study of efficiency," MPRA Paper 116182, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:116182
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    References listed on IDEAS

    as
    1. Debdatta Saha & T. M. Vasuprada, 2021. "Investigating Commercial Incentives for Innovation: An Application in Traditional Medicine," Studies in Microeconomics, , vol. 9(1), pages 66-91, June.
    2. Vidhisha Vyas & K. Narayanan & A. Ramanathan, 2013. "Mergers and acquisitions, technological efforts and exports: a study of pharmaceutical sector in India," Innovation and Development, Taylor & Francis Journals, vol. 3(2), pages 169-186, October.
    3. H.S. Pannu & U. Dinesh Kumar & Jamal A. Farooquie, 2011. "Efficiency and productivity analysis of Indian pharmaceutical industry using data envelopment analysis," International Journal of Operational Research, Inderscience Enterprises Ltd, vol. 10(1), pages 121-136.
    4. Mainak Mazumdar & Meenakshi Rajeev, 2009. "Output and Input Efficiency of Manufacturing Firms in India: A Case of the Indian Pharmaceutical Sector," Working Papers 219, Institute for Social and Economic Change, Bangalore.
    5. Jaswinder Singh & Parminder Singh, 2014. "Decomposition of Technical Efficiency and Productivity Growth in Indian Pharmaceutical Industry: A Non-Parametric Analysis," Artha Vijnana, Gokhale Institute of Politics and Economics, vol. 56(4), pages 456-478.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Traditional Knowledge-based Medicine; Western Medicine; Efficiency; Data Envelopment Analysis.;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance

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