Preparing for LDC Graduation 1. INTRODUCTION The pharmaceutical industry in Bangladesh is not just a cornerstone of the nation’s economy but also a global player, crucially supplying affordable medication to both the domestic market and other Least Developed Countries(LDCs). This makes it a vital contributor to public health on both local and international levels. The industry meets a significant portion of the nation’s demand for medicines and pharmaceutical products and exports to other LDCs, playing a crucial role in shaping the global public health landscape and driving national economic growth. The success of Bangladesh’s pharmaceutical sector, partly attributed to the World Trade Organization’s(WTO) agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) pharmaceutical waiver for LDCs, has allowed the industry to thrive by producing affordable generic versions of patented medicines. As Bangladesh prepares to graduate from the LDC status and this waiver is withdrawn, this transition presents challenges and opportunities for the country’s pharmaceutical sector. However, the industry’s past successes reassure us of its potential to maintain and enhance its competitive edge in the global market even after Bangladesh graduates from the LDC category in 2026. The transition after LDC graduation will subject the industry to more robust intellectual property regulations and increased costs associated with patent compliance, which could potentially impact the affordability and accessibility of medications, especially for the marginalised low­income groups in Bangladesh and the LDCs to which it exports medicine. It may also pose a significant threat to the country’s pharmaceutical industry’s competitiveness and potentially result in a substantial loss of the export revenue earned from this sector. This underlines the urgent need for strategic planning and policy adjustments to mitigate these potential threats. In light of this, it is crucial to evaluate the technological preparedness and innovation necessary for Bangladesh’s pharmaceutical industry to sustain its growth and global competitiveness. The strategic evaluation in this paper aims to assess the current state of technological readiness, identify potential gaps, and propose strategies to enhance the sector’s innovation capacity. Through this, it seeks to ensure a smooth transition for the pharmaceutical industry as Bangladesh graduates from LDC status so that the industry continues to thrive and support public health efforts in Bangladesh and other LDCs. 1.1 Background and Context In the global pharmaceutical industry, innovation can be divided into two major categories: the introduction of new chemical entities(NCEs), which is heavily reliant on extensive research and development(R&D) efforts, and incremental innovation activities, commonly known as ‘imitative R&D’ or‘me-too’ medicines(Bottazzi et al., 2001). The discovery of NCEs involves substantial risk because the results are erratic and the effects are highly unpredictable (Petrova, 2014). Pharmaceutical innovation follows a technology-push model heavily impacted by technological breakthroughs, rigorous medical research, and market demands (Petrova, 2014). Much pharmaceutical innovation falls under imitative learning(Kale, 2017). Firms must shift from imitative innovation to process innovation to sustain the profits 1