Competitiveness and its impact on research and development in Indian pharmaceutical industry

Abstract

The Indian pharmaceutical industry is one of the leading industries in the world which captures a significant global market share and that attracts many investors to invest in this industry. MNCs have entered into the Indian pharmaceutical market and invest a lot of money in research and development to capture the lucrative profits. This paper attempts to examine the degree of competitiveness among the firms in Indian pharmaceutical industry and examine the persistent impact of Research and Development of the competitive pharmaceutical firms. This paper also examines the impact of market structure and market performance on Research and Development in the Indian pharmaceutical industry. The industry is highly competitive and highly competitive pharmaceutical firms have been investing more on R&D persistently. There is an increasing trend of R&D investment over the time period by the pharmaceutical firms due to significant market structure and performance of the past period.