Technology Acquisition Strategies in the Pharmaceutical Industry in Mexico

Abstract

Firms in developing countries are characterized by weak technological capacities, insufficient human capital, and limited R&D. Consequently, these countries also produce fewer patents. Considering these disadvantages, companies in developing countries cannot rely on their in-house R&D efforts; they must import nonincorporated or soft technologies (license and technical-assistance agreements, and tacit knowledge transfer). In the pursuit of technological improvement, firms attempt to adopt an optimal technology acquisition strategy. This essay examines the use of in-house R&D and technology transfer in the Mexican pharmaceutical industry between 1994 and 2000 by using two econometric models. Unlike the pharmaceutical industries of other developing countries such as India and China, this study indicates that there is a low probability of complementarity between R&D and technology transfer in the Mexican pharmaceutical industry. This is a strategy that has been adopted only by some larger firms and multinationals.

Linkage between organisational innovation capability, product platform development and performance

“…Generally, to fill their technology gaps, the Iranian pharmaceutical firms acquire technology from international sources, the same as other developing countries (Zuniga et al, 2007). However, for developing their product platforms, they use a combination of internal and external strategies, which conforms to earlier findings (Kamien and Zang, 2000, Katrak, 1997, Kaiser, 2002, Zhoa, et all., 2005.…”

“…This is the same as in most of developing countries (Zuniga et al, 2007). However, they are different in developing derivative products internally upon the acquired technology.…”

“…The Iranian pharmaceutical industry, like other developing countries, uses an imitation strategy for technology development with a focus on producing generic drugs (Cheraghali, 2006). Therefore, to reduce the technological gap, they acquire proper technologies from international sources or from the companies which have already transferred the technology and adapted it to the firm (Zuniga et al, 2007).…”

Innovation and Productivity across Mexican Manufacturing Firms

“…It is widely recognized that a firm's TT allows access to leading edge technology and this improves processes and stimulates R&D efforts (Arora, 2009). This does not occur, however, in countries with a weak environment for inventive activity (Zúñiga, Guzmán and Brown, 2007).…”

Crecimiento endógeno en un país menos desarrollado: el caso de firmas imitadoras

“…Una inspección hacia las ramas industriales deja ver la heterogeneidad en las capacidades tecnológicas de las industrias; no todas las industrias tienen las mismas capacidades tecnológicas (Zúñiga, Guzmán y Brown, 2007). En el mismo sentido, en el nivel de ramas industriales, se pueden tener resultados diversos; dependiendo de las condiciones tecnológicas del país imitador, en algunas industrias la compra de tecnologías externas podrá complementar la investigación y el desarrollo del país local, mientras en otros casos puede sustituirla implicando un mayor rezago y dependencia tecnológicas.…”