India and China as partner of choice for the Western multinational companies in the era of globalisation

Rakhi Rashmi

International Journal of Learning and Intellectual Capital, 2011, vol. 8, issue 2, 128-154

Abstract: By the Patent Amendment Act 2005, India approved Trade Related Aspect of Intellectual Property Rights (TRIPs) Agreement of the World Trade Organization (WTO) and implemented product patent protection for pharmaceutical and biopharmaceutical products. China, too, at the end of 2002 enacted regulations to strengthen pharmaceutical and biopharmaceutical patents. The change in the patent regimes demand that both these countries biopharmaceutical industries which are basically generic industries to shift from generic manufacturing to novel drug manufacturing. Although due to generic manufacturing base, these countries are able to offer cost-efficient discovery research, testing and manufacturing support to western multinationals. On the other hand, the rising cost and continuous risk involved in drug development process making the western MNCs to head towards Asia for collaboration. The paper explores the best partner of choice between India and China for the multinational companies by analysing the relative strength of the parameter suggested by John Dunning for making the foreign investment.

Keywords: India; China; foreign direct investment; FDI; biopharmaceutical industry; globalisation; TRIPS; international agreements; trade related aspects; intellectual property rights; World Trade Organization; WTO; multinational corporations; MNCs; partnerships; drugs; medicines; Indian legislation; product patents; pharmaceutical industry; patent protection; patent regimes; generic industries; generic manufacturing; novel drugs; cost-efficient research; discovery research; R&D; research and development; product testing; manufacturing support; western multinationals; rising costs; continuous risk; Asia; John Dunning; learning; intellectual capital; management. (search for similar items in EconPapers)
Date: 2011
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=39443 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijlica:v:8:y:2011:i:2:p:128-154

Access Statistics for this article

More articles in International Journal of Learning and Intellectual Capital from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().