Competing Through Technological Capability: The Indian Pharmaceutical Industry in a Changing Global Landscape
by Amit Shovon Ray and Saradindu Bhaduri
CSSP Electronic Working Paper Series (EWPS) No. 3; September 2012.
The evolution of the Indian Pharmaceutical industry reveals an interesting story of emergence through technological learning and capability, nurtured by a well focused policy framework. In this paper, we capture this story in order to understand how the Indian pharmaceutical industry has emerged as a major global generics producer and how it is poised to take on the challenges posed by a changing landscape of the international political-economy. The paper portrays the unique policy space that India had created for itself and shows how endogenously determined home grown policy models have helped the pharmaceutical industry to become self reliant, not only in manufacturing but also in technology, and eventually compete successfully in global markets through technological capability. We conclude by noting that the space for endogenous policy making by national governments have been shrinking over the last couple of decades with the emergence of a new world order driven by neo-liberal institutions like the WTO. Accordingly, the present global landscape does pose a rather challenging environment for the Indian pharmaceutical industry to continue to compete and emerge through its technological capability.