The purpose of this paper is to understand the technological innovation taken place in pharmaceutical industry based on institutional research and the gaps between the investment made in research the utilisation of research by the industry. Though the topic is open for argument but it will be beneficial for public policy makers concerned with science and technology and economist thriving for technological change and innovation. The paper aims at putting a discussion for a need on investment and private businesses collaboration with institutional research. This gives space and time for new knowledge to transform the existing technology for betterment of life. It critically talks in the context of pharmaceutical companies in India while getting an outline from industrially developed countries. It highlights the fact that first industry academia collaboration enhancement agenda was held on 5th March 2013, in New Delhi. This itself explains the requirement of institutional research for technological upliftment which will further be supported by literature presented by the researchers. The international scenario showed that 1980’s Bayh Dole Act of United States is the best model to strengthen the industry and research collaboration. The model has been implemented worldwide. This paper presents the analysis of countries like U.S.A, United Kingdom, China and OCED countries. The reason for this is that these countries have well developed academia industry collaboration and strategic partnership between them. Though these countries have better GDP and stable economy. However, India is a growing economy and new ideas will help it in making it stronger.
