Impact of Knowledge Diffusion on the Performance of Indian Pharmaceutical Companies

Abstract

The study aims to improve understanding of knowledge dissemination on performance determinants in the Indian pharmaceutical industry. Panel data analyses have been used to describe R&D spillover mediated through fixed assets act as a knowledge diffusion pathway, along with five other factors that affect profitability. R&D spillover mediated through physical capital points to knowledge diffusion, albeit in a small way, indicating that such things can take a permanent shape all across the industry. Fixed assets' negative relationship with profitability results from a directional shift in the last two decades.