Title:
Precedence of institutions over research environment in determining growth in Uttar Pradesh in India
Precedence of institutions over research environment in determining growth in Uttar Pradesh in India
Author(s)
Panda, Hrushikesh
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Abstract
Uttar Pradesh, in terms of per capita income the second poorest state in India in the year
2004-05. The state however has a conducive research environment for development of
drugs and pharmaceuticals industry with many central government organizations carrying
out research related to the industry. Drugs and pharmaceuticals is a research intensive
industry. In a globalized world, presence of a conducive research environment adds to
research capability of firms and their competitiveness. Availability of physical and social
infrastructure is fairly adequate in the state. Thus we argue that the state of Uttar Pradesh
should be in a position to attract investment into the drugs and pharmaceuticals industry.
However, it is observed that there is no growth and development of drugs and
pharmaceuticals industry in the state. Chemical industry of which drugs and
pharmaceuticals are a part is indeed the largest industry in the state. However, there has been deindustrialization in the state in general and in chemical and chemical products
industry in particular. Economic institutions ensuring property rights and legislation of laws that are helpful towards development of an industry are all there. Overall law and order is also not bad in the Lucknow-Kanpur region of the state with a conducive
research environment for growth of the drugs and pharmaceuticals industry. We argue
here that favourable political institutions need to precede or at least simultaneously come
about with a conducive research environment for development of an industry. The
political institution that exists in Uttar Pradesh presently or that existed in the past has
been dominated by interest groups of caste. This puts hindrance to development of an
industry in the state even if all other factors are favourable towards it.
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Date Issued
2008-09
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Proceedings