INNOVATIVE CAPABILITY DEVELOPMENT IN THE INDIAN PHARMACEUTICAL INDUSTRY

With increasing globalization, firms in emerging countries are facing turbulent business environment that is marked by liberalization of economic policies and regulatory changes. In such cases firms have to undertake dynamic learning to develop new capability. In developing countries the challenge for firms to develop new competencies is more complex due to political and economic complexities. This paper shows the key role of Diaspora scientists and collaborative models of R&D in development of innovative capabilities in the Indian industry. It also reveals that Indian firms transformed their business models as a response to changing external environment and raises questions regarding future development of the industry.