Indian Pharmaceutical Sector and Investments in Research and Development, Pre and Post Trips: A Comparative Study

Abstract

The paper attempts to understand the effect of Trade Related aspects of Intellectual Property rights (TRIPS) regime on the investments in research and development made by Indian pharmaceutical sector. It is revealed that the Indian pharmaceutical industry has positively reacted to TRIPS reforms by emphasizing on the investments in research. Size really doesn't seem to be stopping Indian companies from investing in research and large as well as small companies have shown a significant increase in investments in research. The companies under domestic control have remarkably increased their investments in research but the ones under foreign control seem to be behind in the race. The firms exploring the global market have started investing more in research after TRIPS regime. However the firms operating only in the domestic market have depicted their reluctance towards research and development. The Indian pharmaceutical industry is certainly changing its focus but will have to continue with its research and innovation in order to grow and face the global competition.