Pradhan, Jaya Prakash (2008): Overcoming Innovation Limits through Outward FDI: The Overseas Acquisition Strategy of Indian Pharmaceutical Firms.
Download (617Kb) | Preview
A host of strategic government policies including a process patent regime led to the rise of Indian pharmaceutical firms with significant process development capabilities. With policies getting liberalized overtime and a product patent regime in place, now firms’ survival crucially depends on their abilities to develop new products and brand creating exercise. Indian pharmaceutical firms with their inadequate product development capabilities are clearly at serious risk. In this context, an increasing number of Indian pharmaceutical firms are observed to be using acquisition as a strategy to overcome their limited innovation strength by accessing new products and their technologies, skills and new markets. Overseas acquisitions represent both challenges and opportunities for Indian pharmaceutical firms aspiring to emerge as global entities based on advance technologies.
|Item Type:||MPRA Paper|
|Original Title:||Overcoming Innovation Limits through Outward FDI: The Overseas Acquisition Strategy of Indian Pharmaceutical Firms|
|Keywords:||Indian pharmaceutical industry; Outward FDI; Overseas Acquisition|
|Subjects:||L - Industrial Organization > L6 - Industry Studies: Manufacturing > L65 - Chemicals; Rubber; Drugs; Biotechnology
F - International Economics > F2 - International Factor Movements and International Business > F23 - Multinational Firms; International Business
F - International Economics > F2 - International Factor Movements and International Business > F21 - International Investment; Long-Term Capital Movements
|Depositing User:||Jaya Prakash Pradhan|
|Date Deposited:||26. Dec 2008 06:49|
|Last Modified:||13. Feb 2013 20:20|
Aggarwal, A (2007) ‘Pharmaceutical Industry’ in N. Kumar and KJ Joseph (eds.) International Competitiveness and Knowledge-based Industries in India, Oxford University Press: New Delhi, pp. 143–184,.
Joseph, N.I. (1979), ‘Multinationals in the Indian Drug Industry’, Social Scientist, Vol. 7, No. 8/9, Multinationals and Underdevelopment, pp. 78–89.
Lanjouw J.O. (1998), ‘The Introduction of pharmaceutical Product Patents in India: Heartless Exploitation of the Poor and Suffering?’ NBER working paper 6366.
Pradhan, J.P. (2007), ‘Strengthening Intellectual Property Rights Globally: Impact on India’s Pharmaceutical Exports’, Singapore Economic Review, 52, pp. 233–250.
Pradhan, J.P. (2008), ‘Indian Direct Investment in Developing Countries: Emerging Trends and Development Impacts’, ISID Working Paper No. 2008/08, Institute for Studies in Industrial Development, New Delhi.
Pradhan, J.P. and A. Alakshendra (2006), ‘Overseas Acquisition versus Greenfield Foreign Investment: Which Internationalization Strategy is better for Indian Pharmaceutical Enterprises?’, ISID Working Paper, No. WP2006/07, Institute for Studies in Industrial Development, New Delhi.
Pradhan, J.P. and PP Sahu (2008), Transnationalization of Indian Pharmaceutical SMEs, Bookwell Publisher, New Delhi.