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Industry Associations: Friend or Foe?

3 May 2016

Although industry associations are often controversial – as early as the 18th century Adam Smith accused them of raising prices and conspiring against the public interest – many researchers today argue that by collaborating with the state, such associations can create growth-enhancing relations. So far, however, the question of their impact on the integration and/or fragmentation of political and industrial innovation systems of developing countries in specific sectors has been overlooked.

In addition, the challenge of integrating political, industrial and healthcare systems in low- and middle-income countries has generally been understood in terms of separate industrial- and health-related innovation policies, which means scant attention has been paid to the institutional roles of biopharmaceutical and other umbrella associations. Politics of Innovation and Development: the Role of Industry Associations in Integrating Political, Industrial and Health Systems in India and South Africa, a paper from IKD deputy director Theo Papaioannou et al (presented at the 66th Political Studies Association Annual International Conference: Politics and the Good Life) sets out to correct this by exploring such associations within South Africa and India.

The authors argue that both types of association increasingly appear to be indispensable for health innovation and economic development. In South Africa and India they have evolved from being rent-seeking lobbying organisations to become institutional partners who, by bringing together key actors from politics, industry and healthcare, shape regulatory institutions and influence the politics of innovation and development. In so doing, they also consolidate the power dynamics which influence whether the direction of innovation will be towards meeting the needs of the poor or excluding them.

Read Politics of Innovation and Development: The Role of Industry Associations in Integrating Political, Industrial and Health Systems in India and South Africa.

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