Knowledge-based industry after market liberalisation: the case of the local pharmaceutical industry in Central and Eastern Europe

Abstract

Research of the strategic aspects of the generic pharmaceutical industry in Central and Eastern Europe (CEE) suggests that generic pharmaceutical companies have neglected technological innovation capability, market orientation and performance and have underestimated the process of globalisation. This has resulted in deteriorated performance and lost competitiveness. A recommended approach to improve the situation is competence-based development cooperation in the form of horizontal networks of regional technological hubs, within the capabilities and limitations of each country. However, this approach departs from traditional production and R&D capacity building and is beyond the current political and economic considerations of individual companies and governments.