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The Distinctive Patterns of Dynamic Learning and inter-firm Differences in the Indian Pharmaceutical Industry

Kale, Dinar (2010). The Distinctive Patterns of Dynamic Learning and inter-firm Differences in the Indian Pharmaceutical Industry. British Journal of Management, 21(1) pp. 223–238.

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Technological or institutional change has proven to be a major cause of the failure of established firms, and history is full of examples. In a globalized world the capability of a firm to reconfigure existing competencies and create new knowledge for innovation has emerged as a dynamic capability to succeed. I examine the learning processes involved in the development of innovative R&D capabilities in Indian pharmaceutical firms as a response to the strengthening of patent law. The strong patent law
represented a major institutional change for Indian firms which had grown in a weak patent era. The analysis shows that the development of new capabilities involved the
removal of rigidities and the acquisition of new knowledge, and reveals that Indian firms are adopting strategies such as hiring of Indian scientists educated or working overseas
in pharmaceutical R&D and collaborative R&D to acquire innovative R&D capabilities. It further points out the inter–intra firm heterogeneity in learning processes and suggests that the move from basic to advance level capabilities is neither linear nor automatic. It requires a deliberate effort and investment by firms in different
mechanisms of learning. The Indian pharmaceutical firms’ responses provide important insights for firms from other developing countries.

Item Type: Journal Item
Copyright Holders: 2009 British Academy of Management
ISSN: 1467-8551
Keywords: learning; Indian pharmaceutical sector; innovation management
Academic Unit/School: Faculty of Arts and Social Sciences (FASS) > Politics, Philosophy, Economics, Development, Geography
Faculty of Arts and Social Sciences (FASS)
Research Group: Innovation, Knowledge & Development research centre (IKD)
Item ID: 22852
Depositing User: Users 3615 not found.
Date Deposited: 19 Aug 2010 15:30
Last Modified: 19 Dec 2017 11:11
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