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Corporate Governance and the Governance of Innovation: The Case of Pharmaceutical Industry

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  • Nicola Lacetera

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Abstract

The paper focuses on some organizationaldynamics that have characterized the pharmaceuticalindustry in the last thirty years, whenbiotechnology and the development of lifesciences have defined a new technologicalparadigm, reshaping many aspects of theindustry, especially the organization ofinnovative activity. We suggest an original interpretation of someorganizational settings, as the increasedimportance of skilled scientists within firmsand the development of inter-organizationalalliances for the division of scientific labor.Following recent theorizing on corporategovernance issues, which points out theintrinsic organizational and relationaldimensions of the resource allocation processesand strategic decision-making, we propose a roleof the organizational practices mentioned aboveon corporate governance, and, in turn, aninfluence of different governance arrangementson innovative activity. We recall moretraditional approaches to the analysis ofcorporate governance, and give a broaderinterpretation to the relevant variablesproposed. Further, relying on more recenttheories and on literature on firm's boundariesand sectoral systems of innovation, we proposeindustry-specific variables forpharmaceuticals, including internal settings aswell as relations with external actors.Preliminary empirical support is given to ourhypotheses, concerning a panel of large USpharmaceutical companies. Copyright Kluwer Academic Publishers 2001

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Bibliographic Info

Article provided by Springer in its journal Journal of Management and Governance.

Volume (Year): 5 (2001)
Issue (Month): 1 (March)
Pages: 29-59

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Handle: RePEc:kap:jmgtgv:v:5:y:2001:i:1:p:29-59

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Web page: http://www.springerlink.com/link.asp?id=102940

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Keywords: corporate governance; organizational settings; pharmaceutical industry;

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Citations

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Cited by:
  1. Cristina Simone & Luca Proietti, 2012. "Wholly proprietary versus wholly open knowledge strategies: some empirical evidences from Italian biotech firms," Journal of Management and Governance, Springer, vol. 16(3), pages 425-447, August.
  2. Fabio Sorrentino & Francesco Garraffo, 2012. "Explaining performing R&D through alliances: Implications for the business model of Italian dedicated biotech firms," Journal of Management and Governance, Springer, vol. 16(3), pages 449-475, August.
  3. Belloc, Filippo, 2010. "Corporate governance and innovation: an organizational perspective," MPRA Paper 21495, University Library of Munich, Germany.
  4. Driver, Ciaran & Guedes, Maria João Coelho, 2012. "Research and development, cash flow, agency and governance: UK large companies," Research Policy, Elsevier, vol. 41(9), pages 1565-1577.
  5. Alfredo D’Angelo, 2012. "Innovation and export performance: a study of Italian high-tech SMEs," Journal of Management and Governance, Springer, vol. 16(3), pages 393-423, August.
  6. Nahoko Mitsuyama, 2013. "Stock Market Reaction to Patent Value in Japan: an Event Study Analysis," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 3(6), pages 12, December.

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