ABSTRACT
The results indicate that acquisition of technological capabilities either by in-house R&D or through imports of embodied or disembodied technology is an important determinant of firms’ competitiveness in international market. In the pharmaceutical industry, acquisition of technological capabilities from abroad may not ensure better export performance unless it is acquired and assimilated efficiently (Bhaduri and Ray 2004). Here, sustained R&D is required for reverse engineering (for producing mainly generic drugs) to contend effectively in price competitive export market. Based on the source of procurement, import of embodied technology in the form of capital equipments and import of raw material help Indian pharmaceutical firms to take advantage of both price and quality competitiveness. In the case of disembodied technology, while it affects favourably the export performance of firms for the complete sample, it does not help boost exports of the sub-sample of M&A firms.
