The Dynamics of Technological Innovation in the Brazilian Pharmaceutical Industry: The Roles of Demand-pull, Technology-push and Government Incentives

Abstract

The political actions of a government may stimulate or inhibit investments in R & D through strategies, which may vary from rather intrusive and domineering to a low level or absence of control. Government intervention in the pharmaceutical industry must strive to achieve a balance between spending on health and the industrial policy objectives of these companies. This study aimed to evaluate the relationship between demand-pull, technology-push and government determinations in the Brazilian pharmaceutical industry. This is an exploratory and longitudinal study in which bibliographic and documental research were employed. The analyses were performed at the macroeconomic level. To check demand-pull, we analyzed the trajectory of the pharmaceutical industry in Brazil, specifying government intervention in each historical context and analyzed the IGP for each period. Technology-push was assessed by counting patents in the database INPADOC classification A61 and by analysis of investments in R&D by multinationals in Brazil. Survey results were positive, suggesting that government interventions are decisive for technological development in the pharmaceutical industry.