Globalization, Technology Transfer and the Knowledge Gap: Case Study of the Global Phamarceutical Industry in Nigeria

Abstract

This paper, discusses the impact of oligopolistic research on transfer of global pharmaceutical manufacturing technology to the less developed countries of the South (Nigeria) in post globalism. On the basis of empirical evidence from the advanced industrialized world, it is argued that the growth of oligopolistic research has given rise to patent monopoly and an international property rights industry dominated by the multinational corporations. Guided by the challenges and logic of central command functions, the centralization of research and development as well as production of base chemicals, have become the strategy for global product standard maintenance, based on centralized product blueprint. Centralization encourages intra-firm trade and profit maximization through over-invoicing and transfer pricing. For ruling out adaptive research on patented drugs, the industry has blocked transfer of technology to the less developed host state. The paper concludes that the contradiction between the philosophy of public good and the philosophy of property rights production technology transfer in the context of the rolled-back state, threatens the world with grave crises of poor medication and economic underdevelopment. It is therefore suggested that greater state involvement and stake in drug production and technology transfer is imperative. This can only be achieved by closing the knowledge gap.