Abstract:The Brazilian pharmaceutical industry is heavily dependent on external sources of inputs, capital, and technology. However, the emergence of technological opportunities and the development of biotechnology and the decline of the patent boom and resulting advances by generic drugs have opened windows of opportunities for the local industry. The article examines the Brazilian industry's innovative behavior vis-à-vis these opportunities, showing that although the industry as a whole invests little in innovation, … Show more
“…These last two achievements contributed to the growth of Brazilian pharmaceutical companies, which enlarged their production capacity and enhanced their technological capabilities. However, firms that failed to meet the new requirements eventually had to shut down their operations (Caliari and Ruiz, 2014; Gadelha and Costa, 2012; Hasenclever et al , 2018; Paranhos et al , 2020b; Strucker and Cytrynowicz, 2007; Tigre et al , 2016). Two more legal changes impact on Brazilian pharmaceutical sector.…”
Purpose
This study aims to analyse how different types of public policies have supported the internationalisation of latecomer science-based firms, taking the case of large Brazilian pharmaceutical companies (LBPCs).
Design/methodology/approach
The methodology comprises a multiple case study and uses a literature review, fieldwork interviews and document analysis of eight LBPCs, five policymakers and three sector experts.
Findings
Direct and indirect policies differ in supporting LBPCs’ internationalisation motivation. The indirect policies created the necessary conditions to accumulate knowledge and capacity in the domestic market. LBPCs that adhere more to policies supporting production and technological capabilities development are internationalising as an extension of their innovative efforts. In contrast, LBPCs that have built productive capacities and have not yet reached a minimum level of technological capacity go abroad to exploit their production capabilities with the support of direct policies.
Originality/value
This study contributes to international business and evolutionary literature, demonstrating the channels through which public policies support latecomer science-based firms. The results show that direct and indirect policies assist firms’ internationalisation in different ways, according to actors’ perception: providing support to strengthen their domestic capabilities, which have become competitive advantages in the international market; or offering support to external expansion. It emphasises that industrial policies are relevant to support companies in creating the initial conditions (ownership advantages) to internationalise, and direct policies are important to help companies to design international strategies. This study also debates that policies supporting companies’ internationalisation depend on their adhesion to programmes and incentives and their routines and capabilities, which are specific to each company and lead to different motivations for international expansion.
“…These last two achievements contributed to the growth of Brazilian pharmaceutical companies, which enlarged their production capacity and enhanced their technological capabilities. However, firms that failed to meet the new requirements eventually had to shut down their operations (Caliari and Ruiz, 2014; Gadelha and Costa, 2012; Hasenclever et al , 2018; Paranhos et al , 2020b; Strucker and Cytrynowicz, 2007; Tigre et al , 2016). Two more legal changes impact on Brazilian pharmaceutical sector.…”
Purpose
This study aims to analyse how different types of public policies have supported the internationalisation of latecomer science-based firms, taking the case of large Brazilian pharmaceutical companies (LBPCs).
Design/methodology/approach
The methodology comprises a multiple case study and uses a literature review, fieldwork interviews and document analysis of eight LBPCs, five policymakers and three sector experts.
Findings
Direct and indirect policies differ in supporting LBPCs’ internationalisation motivation. The indirect policies created the necessary conditions to accumulate knowledge and capacity in the domestic market. LBPCs that adhere more to policies supporting production and technological capabilities development are internationalising as an extension of their innovative efforts. In contrast, LBPCs that have built productive capacities and have not yet reached a minimum level of technological capacity go abroad to exploit their production capabilities with the support of direct policies.
Originality/value
This study contributes to international business and evolutionary literature, demonstrating the channels through which public policies support latecomer science-based firms. The results show that direct and indirect policies assist firms’ internationalisation in different ways, according to actors’ perception: providing support to strengthen their domestic capabilities, which have become competitive advantages in the international market; or offering support to external expansion. It emphasises that industrial policies are relevant to support companies in creating the initial conditions (ownership advantages) to internationalise, and direct policies are important to help companies to design international strategies. This study also debates that policies supporting companies’ internationalisation depend on their adhesion to programmes and incentives and their routines and capabilities, which are specific to each company and lead to different motivations for international expansion.
“…Investment in innovation remains low. R&D spending in the Brazilian pharmaceutical industry is much smaller than 15 to 20 percent of the annual net revenue spent by leading global companies or even 6 to 7 percent spent by Indian drug companies [Tigre, Nascimento and Costa, 2016]. There is also low interaction between universities, companies, funding agencies and regulatory authorities, which hampers innovation in the pharmaceutical field.…”
This paper deals with the journalistic coverage of biologically active compounds presented as promising drugs in Brazil. The sample consists of 214 journalistic stories on 40 compounds published in two daily newspapers and a monthly science magazine from January 1990 to December 2016. After 27 years, although journalists and scientists had claimed that all compounds would become drugs in a few years, only two completed the evaluation tests and were approved for commercialisation. The paper provides a series of strategies to build a more analytical view on drug research and development.
“…Desse modo, evidencia-se exclusão de significativas parcelas sociais. 1,3,11,12 No capitalismo, a saúde estrutura-se por meio da conformação de uma política social. E passa, atualmente, pela crise do Estado de Bem-Estar social e suas consequências.…”
O aumento progressivo do investimento em saúde visa a melhoria na qualidade de vida da população e possui uma dinâmica que envolve grande valor socioeconômico. O número de novas tecnologias lançadas no mercado é crescente, porém tem seu ciclo de vida curto. A elevação dos custos em saúde representa, portanto, um desafio para as fontes pagadoras governamentais e privadas. Assim, este estudo teve por objetivo verificar o que há na literatura sobre o retorno dos investimentos e as perspectivas de desenvolvimento de pesquisa, inovação em saúde e tecnologia, bem como entender como este retorno é avaliado. Realizou-se uma revisão integrativa da literatura presente na base de dados Literatura Latino- Americana e do Caribe em Ciências da Saúde (LILACS), Medical Literature Analysis and Retrieval System on-line (MEDLINE), a partir da seguinte estratégia de busca: ((tw:(investimentos)) AND (tw:(tecnologia)) AND (tw:(inovacao em saude)). Forma inicialmente encontrados 116 artigos e ao final do processo de busca e aplicação dos critérios de inclusão e exclusão ficaram 17 artigos. Dos quais, a maioria utiliza os documentos governamentais como população e quanto aos aspectos metodológicos incluem desde pesquisa qualitativa até revisão da literatura. A partir da leitura do material disponível foram estabelecidas 2 linhas de discussões: (A) Destinação de recursos para inovação em saúde e (B) Formas de avaliação do retorno dos investimentos. As leis governamentais voltadas ao incentivo em desenvolvimento de tecnologias portadoras de futuro estão sob uma lógica mercantil. Pois beneficiam indústrias do setor médico hospitalar, enquanto a saúde pública vem sendo subfinanciada. O gestor possui caráter de grande importância mediante a tomada de decisão para alocação efetiva de recursos disponíveis. Mecanismos avaliativos foram desenvolvidos a fim de subsidiar a tomada de decisão e orientar os investimentos da iniciativa privada, baseados na perspectiva do capitalismo financeirizado.
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