The rise of the Indian biotech industry and innovative domestic companies

This paper uses India's biotech industry as a case to study the catching up of late-industrialising economies. Several conclusions can be drawn. First, innovation capability is critical for domestic companies' success. Second, certain institutional factors have encouraged indigenous technology development of domestic companies in India, such as the price control imposed by the government, technology transfer from Indian public and international research institutions, and funding from the government and the international charity organisations. Third, domestic companies have utilised manufacturing capability to quickly turn the technology into products and reinvest the profit into R&D.