Abstract

GUZMAN, Alenka; LUDLOW, Jorge  and  GOMEZ, Hortensia. Breeches of Technology and Innovation in the Pharmaceutical Industry of Developing Countries. Inv. Econ [online]. 2004, vol.63, n.248, pp.95-145. ISSN 0185-1667.

We follow the topic of technological gaps and innovation in the pharmaceutical industry among industrialized and developing countries, by means of a model where the innovations dynamics depends in a feedback between the expenditure on research and development (GID) and patents. Factors coming from the supply side (as last year patents) and the demand side (GDP per capita and accruals of physical capital) affect both. Our panel results, show that at the level of each country, the industrialized countries had succeed maintaining a positive link between in GID and patents, Germany is an exception, but the link is unclear in developing countries. Pooled data shows that this overall is positive and significant.