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Choosing and Successfully Sustaining Competitive Strategies in the European Pharmaceutical Industry

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Author Info
Herrmann, Andrea M.
Abstract

Abstract It is a central claim of the national competitiveness literature that firms exploit the comparative advantages of their environment by choosing to pursue the product market strategy that is facilitated by national financial- and labour-market institutions. Other­wise, so goes the argument, firms are punished in that strategies receiving no institutional support are less successful and therefore not sustainable in the long run. My analyses of pharmaceutical firms in Germany, Italy and the United Kingdom challenge these arguments on the choice and success of competitive strategies. Given that different measures of strategy success do not indicate that the latter is in line with national institutional advantages, I develop an alternative explanation for the strategy choices of firms. On the basis of my qualitative interviews with managers, I argue that technological opportunities to transform inventions or imitations into marketable products are a primary concern when entrepreneurs choose their firm’s strategy. Zusammenfassung Es ist ein zentrales Argument der Literatur zur nationalen Wettbewerbsfähigkeit von Unternehmen, dass sich letztere die Wettbewerbsvorteile ihrer institutionellen Umgebung zu Nutze machen, indem sie diejenigen Produktstrategien wählen, die durch die jeweiligen nationalen Finanz- und Arbeitsmarktinstitutionen gefördert werden. Ansonsten, so ein weiteres Argument der Literatur, werden Firmen dadurch abgestraft, dass institutionell nicht gestützte Strategien langfristig weniger erfolgreich und daher nicht von Bestand sind. Die im Rahmen dieses Projekts durchgeführten Untersuchungen von Pharmazieunternehmen in Deutschland, Italien und Großbritannien lassen Zweifel an diesen Argumenten zu Wahl und Erfolg von Wettbewerbsstrategien entstehen. Da verschiedene Indikatoren von Strategieerfolg nicht darauf hindeuten, dass nationale Wettbewerbsvorteile die Strategiewahl beeinflussen, wird eine alternative Erklärung entwickelt, wie Unternehmen Wettbewerbsstrategien wählen. Auf der Grundlage von qualitativen Interviews mit Managern wird aufgezeigt, dass die technologischen Möglichkeiten eines Unternehmens, Erfindungen oder Imitationen in marktfähige Produkte zu verwandeln, von wesentlicher Bedeutung dafür sind, welche Strategie ein Unternehmer wählt.

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Publisher Info
Paper provided by Max Planck Institute for the Study of Societies in its series MPIfG Discussion and Working Papers with number 9.

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Date of creation: 21 Oct 2008
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Handle: RePEc:erp:mpifgx:p0083

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Related research
Keywords: political economy; institutions; institutionalism; pharmaceutical industry; U.K.; Germany; Italy;

This paper has been announced in the following NEP Reports:

References listed on IDEAS
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  1. Orsenigo, L. & Pammolli, F. & Riccaboni, Massimo, 2001. "Technological change and network dynamics: Lessons from the pharmaceutical industry," Research Policy, Elsevier, vol. 30(3), pages 485-508, March. [Downloadable!] (restricted)
  2. Owen-Smith, Jason & Riccaboni, Massimo & Pammolli, Fabio & Powell, Walter W., 2002. "A Comparison of U.S. and European University-Industry Relations in the Life Sciences," MPRA Paper 15963, University Library of Munich, Germany. [Downloadable!]
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  3. Gambardella, Alfonso & Orsenigo, Luigi & Pammolli, Fabio, 2000. "Global Competitiveness in Pharmaceuticals: A European Perspective," MPRA Paper 15965, University Library of Munich, Germany. [Downloadable!]
  4. Casper, Steven & Whitley, Richard, 2004. "Managing competences in entrepreneurial technology firms: a comparative institutional analysis of Germany, Sweden and the UK," Research Policy, Elsevier, vol. 33(1), pages 89-106, January. [Downloadable!] (restricted)
  5. Bottazzi, Giulio & Dosi, Giovanni & Lippi, Marco & Pammolli, Fabio & Riccaboni, Massimo, 2001. "Innovation and corporate growth in the evolution of the drug industry," International Journal of Industrial Organization, Elsevier, vol. 19(7), pages 1161-1187, July. [Downloadable!] (restricted)
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  6. Laura Bottazzi & Marco Da Rin, 2002. "Venture capital in Europe and the financing of innovative companies," Economic Policy, CEPR, CES, MSH, vol. 17(34), pages 229-270, 04. [Downloadable!] (restricted)
  7. Casper, Steven & Matraves, Catherine, 2003. "Institutional frameworks and innovation in the German and UK pharmaceutical industry," Research Policy, Elsevier, vol. 32(10), pages 1865-1879, December. [Downloadable!] (restricted)
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