Publication

Abstract : The Indian pharmaceutical industry is highly competitive and has attracted huge investments in research and development, including financing of biotechnological ventures, clinical trials, contract research activities in addition to traditional product development and filing of regulatory requirements. This study aims to identify the specific resources that are significant drivers of performance using panel regression based on an extended version of the Cobb-Douglas production function, where the dependent variable firm performance is measured using annual sales, while the independent variables include labour, capital, R&D investments, and marketing efforts. We find that R&D expenditures have a negative impact on sales in the short to medium time period. Further, it was observed that labour, capital and marketing efforts have a positive influence on firm performance, with marketing having a highly pronounced impact.