Dynamics of appropriability regime and open innovation in the Indian pharmaceutical sector: an exploratory analysis

Research output: Contribution to conferencePaper

Abstract

Appropriability regime in India has undergone a major change in 2005 legalizing product patent protection. Using empirical data from 50 semi-structured interviews with key players in the Indian pharmaceutical sector, we show that a strong appropriability regime favors outbound innovation but restrains inbound innovation in pharmaceutical innovation. We find three appropriability related issues which act as barriers to inbound open innovation - a) preference by public institution researchers to disseminate research results through publications b) poor infrastructure support and c) patent ownership issues. We find that low patenting trends in public institutions inhibits researchers to engage with firms for research collaborations and gives rise to paradox of disclosure. In contrast, the proclivity of firms to appropriate and enhance commercial potential for outbound innovation rather than engage in inbound sourcing of knowledge, for secrecy purposes, leads to paradox of openness. These two paradoxes inhibit open innovation between science and the industry.

Conference

ConferenceBAM 2016
Abbreviated titleBAM 2016
CountryUnited Kingdom
CityNewcastle upon Tyne
Period6/09/168/09/16
Internet address

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Drug products
Innovation
Appropriability regime
Pharmaceuticals
Open innovation
Paradox
Public institutions
Industry

Keywords

  • India
  • open Innovation
  • patent analysis
  • pharmaceutical sector
  • outbound innovation
  • inbound innovation
  • patent ownership

Cite this

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title = "Dynamics of appropriability regime and open innovation in the Indian pharmaceutical sector: an exploratory analysis",
abstract = "Appropriability regime in India has undergone a major change in 2005 legalizing product patent protection. Using empirical data from 50 semi-structured interviews with key players in the Indian pharmaceutical sector, we show that a strong appropriability regime favors outbound innovation but restrains inbound innovation in pharmaceutical innovation. We find three appropriability related issues which act as barriers to inbound open innovation - a) preference by public institution researchers to disseminate research results through publications b) poor infrastructure support and c) patent ownership issues. We find that low patenting trends in public institutions inhibits researchers to engage with firms for research collaborations and gives rise to paradox of disclosure. In contrast, the proclivity of firms to appropriate and enhance commercial potential for outbound innovation rather than engage in inbound sourcing of knowledge, for secrecy purposes, leads to paradox of openness. These two paradoxes inhibit open innovation between science and the industry.",
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Dynamics of appropriability regime and open innovation in the Indian pharmaceutical sector : an exploratory analysis. / Bhatnagar, Bhawani; Dörfler, Viktor; MacBryde, Jillian.

2016. Paper presented at BAM 2016, Newcastle upon Tyne, United Kingdom.

Research output: Contribution to conferencePaper

TY - CONF

T1 - Dynamics of appropriability regime and open innovation in the Indian pharmaceutical sector

T2 - an exploratory analysis

AU - Bhatnagar, Bhawani

AU - Dörfler, Viktor

AU - MacBryde, Jillian

PY - 2016/9/7

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AB - Appropriability regime in India has undergone a major change in 2005 legalizing product patent protection. Using empirical data from 50 semi-structured interviews with key players in the Indian pharmaceutical sector, we show that a strong appropriability regime favors outbound innovation but restrains inbound innovation in pharmaceutical innovation. We find three appropriability related issues which act as barriers to inbound open innovation - a) preference by public institution researchers to disseminate research results through publications b) poor infrastructure support and c) patent ownership issues. We find that low patenting trends in public institutions inhibits researchers to engage with firms for research collaborations and gives rise to paradox of disclosure. In contrast, the proclivity of firms to appropriate and enhance commercial potential for outbound innovation rather than engage in inbound sourcing of knowledge, for secrecy purposes, leads to paradox of openness. These two paradoxes inhibit open innovation between science and the industry.

KW - India

KW - open Innovation

KW - patent analysis

KW - pharmaceutical sector

KW - outbound innovation

KW - inbound innovation

KW - patent ownership

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M3 - Paper

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