Coevolution of technological capabilities and regulation in Indonesian herbal medicine sector

Abstract

This paper aimed to analyse the co-evolution process between technological capabilities of herbal medicine companies and regulation in terms of standard and product quality. Technological capabilities of herbal medicine companies are related to their abilities to produce new products, based on medicinal plants, in which the efficacy and the safety of the products for human consumption have been scientifically proven. By using multiple case studies, this research focuses on five herbal medicine companies and four pharmaceutical companies in which all of the companies have produced one or more herbal products, such as traditional herbal medicines, standardised herbal medicines (SHMs), and clinical herbal medicines (phytopharmaca). The sorts of regulation related to herbal products generates the need for changes in technological capabilities of herbal medicine companies. However, this study revealed that there are different technological capabilities acknowledged between herbal medicine companies and pharmaceutical companies in driving the herbal product orientation.