Entrepreneurship and capability development in Indian bio-pharmaceuticals: An empirical investigation behind the formation of an R&D intensive emerging economy sector

Abstract

What role do entrepreneurship, local innovative talent, government policies and industry associations play in developing knowledge-based industries? This is a pressing question especially for emerging economies that aspire to catch up to advanced economies but are burdened by a host of challenges, including limited access to technology, human capital and financial resources. Yet, every once in a while, comes along a story of successful knowledge-based industry like the Indian bio-pharmaceuticals, which over the last couple of decades has become one of the world’s largest pharmaceutical producers in volume and value. Other nations, like Brazil, Egypt or Korea, tried to develop their own biopharmaceutical industries but met with limited success. The tremendous success of the Indian biopharmaceutical industry suggests that its policy makers and entrepreneurs have their unique contribution to its development.