Title: Technological change in the pharmaceutical industry: policies for technology transfer and management for the developing countries

Authors: Jarunee Wonglimpiyarat

Addresses: The National Science and Technology Development Agency, Ministry of Science and Technology, 111 Thailand Science Park, Paholyothin Rd., Klong 1, Klong Luang, Pathumthani 12120, Thailand

Abstract: This paper analyses the technological change in the pharmaceutical industry. Drawing on Schumpeter|s long waves theory, it is argued that the technological change in the pharmaceutical industry is evolutionary and a de-maturity process. The development of genomic technologies has opened up opportunities for using molecular diagnostics to improve the quality of healthcare and human life. Currently, the high cost of Research and Development (R&D) investment has shifted the big pharmaceutical companies from the development of drugs based on antibacterial research towards drugs for chronic diseases because the latter are commercially viable. The paper proposes a model of technology transfer to correct the imbalance between a decreasing supply of and a growing demand for drugs for diseases in the developing countries. The paper offers policy recommendations to resolve the problems of deficient drug development in the developing countries.

Keywords: innovation life cycle; de-maturity; Schumpeter long waves; evolutionary change; revolutionary change; path dependent; technological change; pharmaceutical industry; technology transfer; technology management; developing countries; drug development.

DOI: 10.1504/IJTPM.2008.017220

International Journal of Technology, Policy and Management, 2008 Vol.8 No.2, pp.194 - 210

Published online: 19 Feb 2008 *

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