Template-type: ReDIF-Paper 1.0 Author-Name: Santiago-Rodriguez, Fernando Author-Email: fsantiago@idrc.ca Author-Workplace-Name: International Development Research Centre, UNU-MERIT Author-Name: Dutrenit, Gabriela Author-Email: gdutrenit@laneta.apc.org Author-Workplace-Name: UAM-Xochimilco Title: Determinants of PRO-industry interactions in pharmaceutical R&D: the case of Mexico Abstract: 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. Classification-JEL: O31, O54, L65 Keywords: Public research organizations, pharmaceutical industry, university-industry collaboration, pharmaceuticals, R&D, Mexico Series: UNU-MERIT Working Papers Creation-Date: 2010 Number: 053 File-URL: http://www.merit.unu.edu/publications/wppdf/2010/wp2010-053.pdf File-Format: application/pdf File-Size: 275 Kb Handle: RePEc:unm:unumer:2010053