Haakonsson, Stine Jessen1; Ørberg Jensen, Peter D.2; M. Mudambi, Susan3
1 Department of Business and Politics, Copenhagen Business School2 Department of Strategic Management and Globalization, Copenhagen Business School3 Fox School of Business
The attractiveness of the Indian pharmaceutical industry as a destination for R&D sourcing by multinational corporations (MNCs) has evolved over the past decades. This evolution has coincided with changes in MNC strategies regarding sourcing location and governance modes. We propose a co-evolutionary theory perspective embracing both firm-internal and firm-environmental factors for location attractiveness, along with institutional and industry changes. The framework integrates constructs from past research in economic geography, international business, and R&D internationalization. The Indian case illustrates how host-country institutional evolution, notably regarding intellectual property rights and education, plays a significant role for international sourcing of pharmaceutical R&D.
Journal of Economic Geography, 2013, Vol 13, Issue 4, p. 677-700