scholarly journals Innovation in Indian Pharmaceutical Industry: Impact of Changing Regulatory Regime

2021 ◽  
pp. 187-196
Author(s):  
Divya Sethi ◽  
Vijit Chaturvedi ◽  
Anju Sethi
Keyword(s):  
Intellectual Property ◽  
Pharmaceutical Industry ◽  
Positive Impact ◽  
Radical Innovation ◽  
Innovation Activity ◽  
Regulatory Regime ◽  
Pharmaceutical Firms ◽  
Sustained Competitive Advantage ◽  
Patent Laws ◽  
Property Regime

Background: The Pharmaceutical industry has always been fostered with a culture of radical innovation. Nevertheless, the significance of radical innovation is yet unrealized by the Indian pharmaceutical firms.  Introduction: The Indian pharma companies often seek immediate profit avenues rather than investing in radical innovation. They lead by imitation than innovation. This has been majorly due to the lax intellectual property laws in the country. Objectives: This paper ruminates on the significance of a stringent intellectual property regime and its impact on profitability and innovation. Result: The findings of the study indicate that increased R&D intensity enhances innovation. Furthermore, this relationship is bolstered in the presence of a stringent intellectual property regime. The findings also indicate that enhanced innovation activity increases the profitability of the firms. Conclusion: Innovation activity is enhanced in presence of a stricter intellectual property regime, and this indeed has a positive impact on the firm profitability as well. Hence, as the results of the study indicate, the pharmaceutical firms in India should be encouraged to invest in research and development, especially considering the stricter patent laws. It will help firms bolster their profitability and have a sustained competitive advantage in the industry.

scholarly journals The TRIPS Agreement and the Pharmaceutical Industry in India

2019 ◽  
Vol 32 (1) ◽  
pp. 95-113
Author(s):  
Atsuko Kamiike
Keyword(s):  
Intellectual Property ◽  
Pharmaceutical Industry ◽  
Property Rights ◽  
Intellectual Property Rights ◽  
Value Chain ◽  
Pharmaceutical Product ◽  
Trips Agreement ◽  
Pharmaceutical Firms ◽  
Technology Transfers ◽  
Indian Pharmaceutical Industry

The World Trade Organization’s (WTO’s) Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement) calls for the harmonization of intellectual property rights (IPRs) regulations across all WTO member countries. The TRIPS Agreement requires all WTO member countries to adopt and enforce minimum standards of intellectual property. It was assumed that the introduction of pharmaceutical product patents would hamper the Indian pharmaceutical industry’s growth. Contrary to expectations, however, the Indian pharmaceutical industry has been growing in the post-TRIPS period. The TRIPS Agreement changed the research and development (R&D) orientation of Indian pharmaceutical companies, which have increased their R&D investments. Since the TRIPS Agreement was signed, the pharmaceutical global value chain (GVC) has been re-structured and has now expanded to emerging countries like India. Indian pharmaceutical firms have thus been participating in the pharmaceutical GVC in the post-TRIPS period. This participation is conducive to technological upgrading and technology transfers. While operating in the GVC, Indian pharmaceutical firms are upgrading by adopting state-of-the-art technologies. This study explores how the TRIPS Agreement is influencing the Indian pharmaceutical industry and discusses the industry’s growth factors in the post-TRIPS period within the GVC framework. JEL: L21, L24, L26, L65

The Influence of TRIPS Compliant Patent Laws on Indian Pharmaceutical Industry

2014 ◽  
Vol 4 (1) ◽  
Author(s):  
Rupesh Rastogi ◽  
Virendra Kumar
Keyword(s):  
Pharmaceutical Industry ◽  
Patent Protection ◽  
Uruguay Round ◽  
Pharmaceutical Products ◽  
Trips Agreement ◽  
Patent Law ◽  
Patent Laws ◽  
The Impact ◽  
First Time ◽  
Indian Pharmaceutical Industry

The first legislation in India relating to patents was the Act VI of 1856. The Indian Patents and Design Act, 1911 (Act II of 1911) replaced all the previous Acts. The Act brought patent administration under the management of Controller of Patents for the first time. After Independence, it was felt that the Indian Patents & Designs Act, 1911 was not fulfilling its objective. Various comities were constituted to recommend, framing a patent law which can fulfill the requirement of Indian Industry and people. The Indian Patent Act of 1970 was enacted to achieve the above objectives. The major provisions of the act, provided for process, not the product patents in food, medicines, chemicals with a term of 14 years and 5-7 for chemicals and drugs. The Act enabled Indian citizens to access cheapest medicines in the world and paved a way for exponential growth of Indian Pharmaceutical Industry. TRIPS agreement, which is one of the important results of the Uruguay Round, mandated strong patent protection, especially for pharmaceutical products, thereby allowing the patenting of NCEs, compounds and processes. India is thereby required to meet the minimum standards under the TRIPS Agreement in relation to patents and the pharmaceutical industry. India’s patent legislation must now include provisions for availability of patents for both pharmaceutical products and processes inventions. The present paper examines the impact of change in Indian Patent law on Pharmaceutical Industry.

A Study of Multilayered Profitability Analysis by Using DuPont Model: Evidence from Indian Pharmaceutical Industry

2021 ◽  
pp. 097215092199305
Author(s):  
Pinku Paul
Keyword(s):  
Panel Data ◽  
Pharmaceutical Industry ◽  
Profit Margin ◽  
Pharmaceutical Firms ◽  
Sustainable Performance ◽  
Profitability Analysis ◽  
Panel Data Regression ◽  
Data Regression ◽  
Negative Effect ◽  
Positive Effect

Profitability is used as a prime indicator to measure the sustainable performance of an organization. The current study made an attempt to apply the DuPont model to investigate the multilevel profitability determinants for the pharmaceutical industry of India. The study also estimates an empirical model to predict the association of profitability with factors such as profit margin, asset utilization, leverage, interest load and tax load of firms in the pharmaceutical industry of India. For this purpose, a dataset for 170 companies from 2010–2011 to 2018–2019 was analysed initially by using panel data regression followed by stepwise panel data regression. The study successfully applied and tested the DuPont model with respect to the firms of the pharmaceutical industry in India. It was found that the factors such as profit margin, asset utilization and leverage had a significant positive effect on the firms’ profitability and the factor interest load had a significant negative effect on the firms’ profitability. The tax load does not have an impact on the profitability of the pharmaceutical firms in India. These findings are expected to provide a guide for understanding the profitability of the firms in a better way.

scholarly journals Does Employee Care Trigger Innovation Under a Healthy and Safe Working Environment? Evidence from the Pharmaceutical Industry in China

Healthcare ◽  
2021 ◽  
Vol 9 (2) ◽  
pp. 194
Author(s):  
Minghui Yang ◽  
Qian Lin ◽  
Petra Maresova
Keyword(s):  
Safety Management ◽  
Positive Impact ◽  
Health And Safety ◽  
Working Environment ◽  
Firm Innovation ◽  
Corporate Managers ◽  
Pharmaceutical Firms ◽  
Corporate Ability ◽  
Safe Working

Sustainability of the workforce becomes a crucial issue, of which responsible care for employees can increase job satisfaction and human capital that impact corporate ability to absorb and generate new knowledge. Firms are obligated to provide a healthy and safe working environment for their employees, but it may in turn hinder innovation due to rigid and structured institutional regulations. Drawing on data of 308 China’s pharmaceutical firms from 2010 to 2017, we investigated whether employee care can trigger innovation under corporate adoption of the occupational health and safety management system (OHSMS). Our results suggest that both employee care and OHSMS adoption have a positive impact on innovation. Moreover, the positive relationship between employee care and innovation was more pronounced in firms that had adopted the OHSMS certification. These findings are valuable to policymakers and corporate managers in emerging economies through corroborating the important role of workforce sustainability in facilitating firm innovation.

scholarly journals Missing Novelty in Drug Development

2021 ◽  
Author(s):  
Joshua Krieger ◽  
Danielle Li ◽  
Dimitris Papanikolaou
Keyword(s):  
Radical Innovation ◽  
Chemical Similarity ◽  
Net Worth ◽  
Drug Candidates ◽  
Pharmaceutical Firms ◽  
External Finance ◽  
Fda Approval ◽  
Novel Drugs ◽  
Positive Shock ◽  
Novel Drug

Abstract We provide evidence that risk aversion leads pharmaceutical firms to underinvest in radical innovation. We introduce a new measure of drug novelty based on chemical similarity and show that firms face a risk-reward trade-off: novel drug candidates are less likely to obtain FDA approval but are based on more valuable patents. Consistent with a simple model of costly external finance, we show that a positive shock to firms’ net worth leads firms to develop more novel drugs. This suggests that even large firms may behave as though they are risk averse, reducing their willingness to investment in potentially valuable radical innovation.

THE IMPORTANCE OF INNOVATIVE ACTIVITIES AT THE MODERN STAGE OF ECONOMIC DEVELOPMENT ANNOTATION

2021 ◽  
Vol 4 (2) ◽  
pp. 79-86
Author(s):  
Obidkul Sattorkulov ◽  
◽  
Dilorom Mamadiyorova ◽  
Madina Obidzhonova
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Positive Impact ◽  
Innovation Process ◽  
Economic Structure ◽  
Innovation Activity ◽  
Social Image ◽  
Innovation Infrastructure ◽  
New Development ◽  
Development Prospects

This article presents the main ways in which innovation can have a positive impact on economic growth, welfare of the population, economic structure, social image of society and various sectors of the economy, innovation opportunities, their application and development prospects. Key words:innovation, novation, science, new development, innovation, innovation infrastructure, innovation activity, innovation process.

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