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Why India's Drug Policy Backfired: The Surprising Truth About FDI Tech Spillovers
This video unpacks a 2001 study by Susan E. Feinberg and Sumit K. Majumdar from the Journal of International Business Studies, revealing how India's restrictive FDI and weak patent laws in the 1980s-90s failed to boost local pharmaceutical innovation. Instead of creating tech spillovers from foreign to local firms, the policy created a divided industry where only multinationals benefited from each other's R&D. Local firms, despite higher R&D spending, saw zero productivity gains from foreign knowledge. The result? A 'two-tier' system that hurt everyone. Watch to learn why well-intentioned policies can backfire, and what this means for developing nations today.
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