A research study submitted in partial fulfillment of the requirement for the degree of Master of Business Administration

Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 1994

Pharmaceutical industry of Pakistan is one of the prime sectors that is playing a significant role in the technological progression and economic development of the country. Though intense competition exists in this industry, it is growing fast and moreover considerable investments in this area are expected in the future. Technology is a critical resource, which if appropriately manipulated, could be utilized for sustainable competitive advantage of the firms. Continuous improvements in the technological capabilities of a firm could foster competitiveness, growth, and productivity, and could lead to increased prosperity of the nation. Thus assessment of the technological capability development is vital. Keeping this view a research study was carried out to appraise the technological capability of multinational and local pharmaceutical companies in Pakistan. The capabilities were studied under four categories, operative, acquisitive, innovative, and supportive. Several indicators have been developed for the assessment of these capabilities. Areas where technological capability gaps exist have been identified. Interpretations for the difference in level of technological capability between the multinational and local firms were given. Finally the overall technological capabilities of multinational companies were compared with that of locals. Such studies could serve as a useful means for bench marking the performance of companies. Recommendations have also been made for further research.