Industry and Innovation: Some Lessons from Vaccine Procurement

This paper suggests that demand instruments of international vaccine procurement, instead of being seen primarily as a global management instrument, can usefully induce industrial change and technological innovation through improved technical standards and regulations. The example of Indian vaccines is analyzed, and an industrial evolution schematic is investigated. The findings suggest that some fine tuning can improve the demand side for technological innovation. However, tensions between industrial and health policies and their separate evolutions are also visible, and more is needed to link industrial and technological gains with domestic health needs, if the goal is broader social impact.

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World Development, 34 (10) October 2006: 1742–1764

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