Abstract
The emergence of the sectoral systems of innovation (SSI) framework for analysing shifts in technological trajectory and economic growth has evoked a great deal of interest. Many researchers working on the National Systems of Innovation (NSI) concept have welcomed the approach and shown interest in the interplay between national and sectoral frameworks and related policy prescriptions. This paper attempts to analyse emerging and missing linkages between SSI and NSI in the biopharmaceutical sector in India. It does so in the light of major expansion in the Indian pharmaceutical industry and the new efforts to incorporate strategies targeting biotechnology innovation. The paper studies the policy regime facilitating this new era and discusses the future growth prospects of the Indian biopharmaceutical industry.
Acknowledgements
The author would like to thank Saikat Sinha Roy and two anonymous referees of this journal for their comments on an earlier draft. The usual disclaimer applies.
Notes
1. Biopharmaceuticals are therapeutic or preventative medicines that are derived from living cells, using recombinant DNA technology. Conventional pharmaceuticals are generally small molecules, whereas biopharmaceuticals are typically proteins, peptides, nucleic acids or inactivated viruses/bacteria. The biopharmaceuticals include insulin, hepatitis B vaccine, erythropoietin, human growth hormones.
2. S. Dogra, The biopharma boom, Pharma Express, 31 October 2006.
3. M. Quéré, Knowledge dynamics: biotechnology incursion into the pharmaceutical industry, Industry and Innovation, 10(3), 2003, pp. 255–273.
4. R. Nelson & N. Rosenberg, Technical innovation and national systems, in: R. Nelson (Ed.) National Systems of Innovation: A Comparative Analysis (Oxford, Oxford University Press, 1993), pp. 3–21.
5. B. Carlsson (Ed.), Technological Systems and Industrial Dynamics (Boston, MA, Kluwer Academic, 1997).
6. A. Saxenian, Regional Advantage: Culture and Competition in Silicon Valley and Route 128 (Cambridge, Cambridge University Press, 1999); P. Cooke, Business processes in regional innovation systems in the European Union, in: Z. Acs (Ed.) Regional Innovation, Knowledge and Global Change (London, Pinter, 2000), pp. 53–71; H. J. Braczyk, P. Cooke & M. Heideareich (Eds), Regional Innovation Systems (London, UCL Press, 1998).
7. F. Malerba, Innovation and the evolution of industries, CESPRI Working Paper No. 170, Centro di Ricerca sui Processi di Innovazione e Internazionalizzazione, July 2005; F. Malerba, Sectoral systems of innovation and production, Research Policy 31, 2002, pp. 247–264.
8. S. Bartholomew, National system of biotechnology innovation: complex interdependence in the global system, Journal of International Business Studies, 28(2), 1997, pp. 241–266; J. Senker, European Biotechnology Innovation System (EBIS): analysis of the biopharmaceutical sector, Project Report submitted to EC, DG XII, 2001.
9. M. McKelvey & L. Orsenigo, Pharmaceuticals as a sectoral innovation system, University of Brescia and CESPRI, Bocconi University, Milan, A Miemo, 2001; F. Malerba & L. Orsenigo, Innovation and market structure in the dynamics of the pharmaceutical industry and biotechnology: towards a history-friendly model, Industrial and Corporate Change, 11(4), 2002, pp. 667–703.
10. D. Archibugi, J. Howells & J. Michie, Innovation systems in a global economy, Technology Analysis and Strategic Management, 11(4), 1999, pp. 527–539.
11. McKelvey & Orsenigo, op. cit., Ref. 9.
12. G. P. Pisano, Can science be a business? Lessons from biotech, Harvard Business Review, 84(10), October 2006, pp. 114–125.
13. Nelson & Rosenberg, op. cit., Ref. 4.
14. B. A. Lundvall, Introduction, in: B. A. Lundvall (Ed.) National Systems of Innovation. Towards a Theory of Innovation and Interactive Learning (London, Pinter, 1992), pp. 1–19; R. Kaiser & P. Heiko, ‘The reconfiguration of national innovation systems—the example of German biotechnology, Research Policy, 33, 2004, pp. 395–408.
15. Malerba, op. cit., Ref. 7.
16. Lundvall, op. cit., Ref. 14.
17. Kaiser et al., op. cit., Ref. 14.
18. G. P. Sinha, Government to set up 5 institutes to boost pharma R&D, The Economic Times, 8 December 2006.
19. MoEF, Report of the Task Force on Recombinant Pharma. Ministry of Environment and Forests, Government of India, August, 2005.
20. Ibid.
21. K. S. Jayaraman, India sets its sights on global health care market, Nature Medicine, 9, 2003, p. 377.
22. The Times of India, 9 September 2001.
23. DST, Annual Report, Ministry of Science and Technology, Department of Science and Technology, Government of India, New Delhi, 2005.
24. The Reserve Bank of India governs the investment and flow of foreign currency in and out of India.
25. S. Sethi, Venture capital reforms: give me more on the platter, The Economic Times, 31 January 2001.
26. Based on ICICI web page.
27. B. Bowonder & S. Mani, Venture capital and innovation: the Indian experience, 2002, Paper presented at the International Conference on ‘Financial Systems, Corporate Investment in Innovation and Venture Capital’, UNU/INTECH and EU-DG Research, Brussels, 7–8 November 2002.
28. Indian Planning Commission, Sixth Five Year Plan, 1980–85, New Delhi, Planning Commission, p. 326.
29. Department of Biotechnology, Annual Report 1987–88, Ministry of Science and Technology, Government of India, New Delhi, 1988; Department of Biotechnology, Annual Report 1997–98, Ministry of Science and Technology, Government of India, New Delhi, 1998; Department of Biotechnology, Annual Report 2001–02, Ministry of Science and Technology, Government of India, New Delhi, 2002.
30. Personal communication with, ICMR officials, New Delhi.
31. Department of Biotechnology, Annual Report 2000–2001, Ministry of Science and Technology, Government of India, New Delhi, 2001.
32. www.ibab.ac.in (accessed 21 May 2007).
33. Indian Express, 9 January 2002.
34. Business World, Reliance Life goes shopping, Business World, New Delhi, 8 January 2007; Business Standard, ‘Reliance Life closes in on # 1 bn. US buy’, Business Standard, New Delhi, 21 December 2006.
35. The Economic Times, 29 July 29 2001.
36. H. Rajappa, rDNA, the hot new biopharma favourite, BioSpectrum, 15 February 2007.
37. Personal communication with Chairperson, CII: Task Force on Biotechnology.
38. K. S. Sinha, Pharma majors take does of new molecule R&D, Business Standard, New Delhi, 19 February 2007.
39. The Economic Times, 18 July 2001.
40. BioSpectrum, Dr Bhan moots Indo–US innovation forum to spur growth in biotech, 6 January 2006.
41. Malerba, op. cit., Ref. 7.
42. S. Chaturvedi, Dynamics of biotechnology research and industry in India: statistics, perspectives and key policy issues, Science, Technology and Industry Working Paper No. 2005/6, OECD, 2005. Updated from Annual Report of 2006/07, Department of Biotechnology, Government of India.
43. Senker, op. cit., Ref. 8.