Policies to support the internationalisation of latecomer science-based firms: the experience of large Brazilian pharmaceutical companies
ISSN: 1525-383X
Article publication date: 19 May 2023
Issue publication date: 1 November 2023
Abstract
Purpose
This study aims to analyse how different types of public policies have supported the internationalisation of latecomer science-based firms, taking the case of large Brazilian pharmaceutical companies (LBPCs).
Design/methodology/approach
The methodology comprises a multiple case study and uses a literature review, fieldwork interviews and document analysis of eight LBPCs, five policymakers and three sector experts.
Findings
Direct and indirect policies differ in supporting LBPCs’ internationalisation motivation. The indirect policies created the necessary conditions to accumulate knowledge and capacity in the domestic market. LBPCs that adhere more to policies supporting production and technological capabilities development are internationalising as an extension of their innovative efforts. In contrast, LBPCs that have built productive capacities and have not yet reached a minimum level of technological capacity go abroad to exploit their production capabilities with the support of direct policies.
Originality/value
This study contributes to international business and evolutionary literature, demonstrating the channels through which public policies support latecomer science-based firms. The results show that direct and indirect policies assist firms’ internationalisation in different ways, according to actors’ perception: providing support to strengthen their domestic capabilities, which have become competitive advantages in the international market; or offering support to external expansion. It emphasises that industrial policies are relevant to support companies in creating the initial conditions (ownership advantages) to internationalise, and direct policies are important to help companies to design international strategies. This study also debates that policies supporting companies’ internationalisation depend on their adhesion to programmes and incentives and their routines and capabilities, which are specific to each company and lead to different motivations for international expansion.
Keywords
Acknowledgements
The authors would like to express our gratitude to the editor, Jorge Carneiro, and anonymous referees for their guidance and support throughout the revision. The authors extend our sincere appreciation to Danilo Spinola, whose insightful comments and suggestions greatly contributed to the development of this article.
This work was supported by the Coordination for the Improvement of Higher Education Personnel (CAPES) (Grant number 001), and the Ministry of Health through the National Council for Scientific and Technological Development (CNPq), as a partial result of the Project “Reflection of Brazilian Health Industrial and Technological Policies for Local Production and Supply of the Unified Health System (SUS)” (Grant number 41/2013).
Citation
Perin, F.S. and Paranhos, J. (2023), "Policies to support the internationalisation of latecomer science-based firms: the experience of large Brazilian pharmaceutical companies", Multinational Business Review, Vol. 31 No. 4, pp. 565-585. https://doi.org/10.1108/MBR-12-2021-0169
Publisher
:Emerald Publishing Limited
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