Why Industry Associations Matter for Healthcare Industries in Emerging Countries

A paper written by Dinar Kale et al focusing on the often neglected potential of industry associations in facilitating the development of healthcare industries was presented at the 13th Globelics International Conference, 23-25 September 2015, in Havana, Cuba.

Case studies of the Indian biotechnology and medical device industries have revealed the crucial role of industry associations and related organisations in the development of the biotechnology industry, while at the same time highlighting that a lack of similar representation has created regulatory and industrial policy hurdles for the medical device industry.

From an early stage, biotech industry associations in India were proactive in lobbying for an appropriate regulatory and technology policy regime and over the years entered into a strategic partnership with the government to promote entrepreneurship and affordable healthcare. By contrast, in the case of the medical device industry, the diverse nature of the products and underlying knowledge bases made it difficult for policymakers to fully grasp specific industrial and regulatory policy requirements. This lack of understanding was accentuated by the absence of sector-specific associations, which created a communication gap between government and industry and led to neglect of the fledgling industry.

The paper highlights the critical role of associations in plugging such communication and information gaps, and promoting entrepreneurship and diffusion of regulatory policies among members. Industry associations' ability to reduce transactions costs makes them an indispensable part of national innovation systems in general and healthcare systems in particular.

Read Why Industry Associations Matter for Healthcare Industries in Emerging Countries: Evidence from the Indian Biotechnology and Medical Device Industries.