ICC Advance Access originally published online on February 27, 2009
Industrial and Corporate Change 2009 18(2):295-323; doi:10.1093/icc/dtp002
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This article appears in the following Industrial and Corporate Change issue: Special Issue: The Internationalization of Chinese and Indian Firms-Trends, Motivations and Strategy [View the issue table of contents]
Internationalization and technological leapfrogging in the pharmaceutical industry
Correspondence: Suma Athreye, Brunel Business School, Brunel University, Uxbridge, Middlesex UB8 3PH, UK. suma.athreye{at}brunel.ac.uk
Correspondence: Andrew Godley, Henley Business School, University of Reading, PO Box 218, Whiteknights, Reading RG6 6AA, UK. e-mail: a.c.godley{at}henley.reading.ac.uk
Internationalization is a useful strategy for gaining firm-specific technological advantages especially during periods of technological discontinuity as the pharmaceutical industry illustrates. The antibiotics revolution in the 1940s saw laggard US firms scrambling to gain capabilities in antibiotics. The possibilities of non-chemical routes to new drug discovery in the 1990s saw Indian generic drug manufacturers attempting to develop new drug discovery capabilities. This article compares the leapfrogging strategies adopted by US and Indian firms and shows that in both periods internationalization strategies were central to the technological strategies of both groups of firms.