Productivity and technical changes in the Indian pharmaceutical industry |
| |
Authors: | H Saranga R D Banker |
| |
Institution: | 1.Indian Institute of Management Bangalore,Bangalore,India;2.Fox School of Business, Temple University,Philadelphia,USA |
| |
Abstract: | We study the productivity change and factors driving this change in the Indian pharmaceutical industry during 1994–2003, in the backdrop of economic liberalization and change in regulatory norms. We use a non parametric Data Envelopment based-methodology to estimate productivity change and decompose it into technical and relative efficiency changes. We find that, the long-term strategic measures by a section of innovative firms that foresaw the implications from competitive forces of globalization and a change in the regulatory environment have sphereheaded the technical change. Consequently, few innovative firms, characterized by greater R&D investments, transition into higher value-added products and businesses as a step towards more technically sophisticated new drug development have pushed the production frontier, increasing the technical and productivity gains. The higher technical and R&D capabilities and wider new product portfolios of multinational companies also have contributed to the positive technical and productivity changes in the Indian pharmaceutical industry. |
| |
Keywords: | |
本文献已被 SpringerLink 等数据库收录! |
|