The Globalization of Innovation: Pharmaceuticals
Cost pressures, the need to tap global talent, and growth opportunities in emerging markets have prompted western pharmaceutical companies to shift substantial work to India and China.
Multinational corporations are searching for means to broaden their capacity for drug development while decreasing costs. Pharmaceutical firms in India and China are increasingly forging partnerships with these corporations to gain revenue and to develop their own expertise. These relationships largely appear to be symbiotic.
As a result of the movement of R&D to their countries, Indian and Chinese scientists are rapidly developing the ability to innovate and create their own intellectual property. Several firms in India and China are performing advanced research and development and are moving into the highest-value segments of the pharmaceutical global value chain.
What is noteworthy is that most of the advances in R&D in India and China happened over the last decade with the greatest momentum being built over the last five years.