'Learning by importing' in global value chains: upgrading and South-South strategies in the Ugandan pharmaceutical industry

Stine Jessen Haakonsson

Development Southern Africa, 2009, vol. 26, issue 3, 499-516

Abstract: Drawing on global value chain analysis, this article discusses the possibilities for upgrading in a domestically oriented import-dependent industry. The pharmaceutical industry in Uganda consists of a large number of importers, nine of which have upgraded into assembly and four a step further into manufacturing. The industry upgrades by a process of 'learning by importing'. Although not engaged with global buyers, pharmaceutical producers in Uganda are tied into the global pharmaceutical value chain by international linkages with their suppliers, mainly in India, from whom they access technology and intermediates for production. Hence, this industry is based on South-South networks for production of low-value pharmaceutical products. With the globalisation of the pharmaceutical industry, an increasing number of global lead firms are ceasing to manufacture these products. This study illustrates an alternative form of industrialisation and upgrading that has not been adequately considered in the development of the African pharmaceutical industry.

Keywords: Pharmaceutical industry; global value chains; upgrading; Uganda; South-South; TRIPs Agreement (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (6)

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DOI: 10.1080/03768350903086861

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