ABSTRACT
This chapter argues that contrary to the interest in learning about the drivers of public research organizations (PRO)-industry interactions in developing national innovation systems (NIS), it explains about factors that hinder such interactions. Based on data about the pharmaceutical industry, the chapter explores both the drivers and barriers to PRO-industry interactions for pharmaceutical research and development (R&D) in Mexico. The chapter describes how PRO-industry interactions differ throughout the distinct phases of pharmaceutical R&D. It presents the pharmaceutical innovation process and the recent trends in the global pharmaceutical industry. The chapter builds on primary data about pharmaceutical firms in Mexico. The global pharmaceutical industry stands out for its socio-economic, health and ethical implications; intensive R&D characterizes it as a science-based industry. Pharmaceutical innovation in Mexico is mostly incremental, in the form of generics drugs and life-cycle support of existing products. PRO-industry interactions in Mexico sustain activities either that increase a firm's technological capabilities (TC), or that complement such capabilities.
