Interactive learning, particularly between firms and public research
organizations (PRO), nurtures the dynamics of systems of innovation.
Limited interaction contributes to explain poor performance in R&D and
ultimately, in innovation by developing countries. But why this is so?
Based on evidence from the pharmaceutical industry in Mexico, this paper
identifies some determinants of PRO-industry interaction for
pharmaceutical R&D. Particular attention is granted to factors hindering
such interactions; arguably the barriers differ throughout the diverse
stages of the R&D process. The paper decomposes the Research and
Development processes, thus it is possible to identify determinants to
interactions in each of those instances. Drug development is further
split in two stages: clinical research and drug manufacturing. The
analysis indicates that macroeconomic and business environments, firms'
strategies, ethical considerations, incentives and perceptions of
PRO-industry interaction among the agents in the system, support/hinder
interactivity in pharmaceutical R&D.
Keywords: Public research organization-industry interactions; pharmaceuticals R&D, Mexico
JEL Code: O31, O54, L65.