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Architectural Lock-in of the Drug Development Process

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Author Info

  • Engwall, Mats

    ()
    (Department of Industrial Economics and Management, Royal Institute of Technology, Stockholm)

  • Freilich, Jonatan

    ()
    (Department of Industrial Economics and Management, Royal Institute of Technology, Stockholm)

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    Abstract

    The theory of technological evolution and organizational lock-in are based on an empirical foundation where technology is manifested in a tangible product. However, in industries producing chemicals, services, art, health care, or complex product systems, the technological design of the product has limit explanatory power for understanding technological evolution. Anchored in a case study from the pharmaceutical industry, this paper addresses the significance of the technologies and architecture of the R&D process in order to understand dynamics of innovation and technological evolution in such industries. The case shows how the technology and design of the process architecture shape the content of pharmaceutical R&D, enabling and hindering necessary knowledge creation for product innovation.

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    Bibliographic Info

    Paper provided by Department of Industrial Economics and Management, Royal Institute of Technology in its series INDEK Working Paper Series with number 2014/4.

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    Length: 24 pages
    Date of creation: 08 Apr 2014
    Date of revision:
    Handle: RePEc:hhs:kthind:2014_004

    Contact details of provider:
    Postal: Department of Industrial Economics and Management, Royal Institute of Technology, SE-100 44 Stockholm, Sweden
    Phone: 08-790 78 61
    Fax: 08-790 76 17
    Web page: http://www.kth.se/en/itm/inst/indek
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    Related research

    Keywords: process architecture; lock-in; technological evolution; drug development;

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    1. Horvath, Michael & Schivardi, Fabiano & Woywode, Michael, 2001. "On industry life-cycles: delay, entry, and shakeout in beer brewing," International Journal of Industrial Organization, Elsevier, vol. 19(7), pages 1023-1052, July.
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    3. Hobday, Mike, 1998. "Product complexity, innovation and industrial organisation," Research Policy, Elsevier, vol. 26(6), pages 689-710, February.
    4. Arthur, W Brian, 1989. "Competing Technologies, Increasing Returns, and Lock-In by Historical Events," Economic Journal, Royal Economic Society, vol. 99(394), pages 116-31, March.
    5. Cappetta, Rossella & Cillo, Paola & Ponti, Anna, 2006. "Convergent designs in fine fashion: An evolutionary model for stylistic innovation," Research Policy, Elsevier, vol. 35(9), pages 1273-1290, November.
    6. Leonhard Dobusch & Elke Schü�ler, 2013. "Theorizing path dependence: a review of positive feedback mechanisms in technology markets, regional clusters, and organizations," Industrial and Corporate Change, Oxford University Press, vol. 22(3), pages 617-647, June.
    7. DiMasi, Joseph A. & Hansen, Ronald W. & Grabowski, Henry G., 2003. "The price of innovation: new estimates of drug development costs," Journal of Health Economics, Elsevier, vol. 22(2), pages 151-185, March.
    8. David, Paul A, 1985. "Clio and the Economics of QWERTY," American Economic Review, American Economic Association, vol. 75(2), pages 332-37, May.
    9. Nightingale, Paul, 2000. "Economies of Scale in Experimentation: Knowledge and Technology in Pharmaceutical R&D," Industrial and Corporate Change, Oxford University Press, vol. 9(2), pages 315-59, June.
    10. Dosi, Giovanni, 1993. "Technological paradigms and technological trajectories : A suggested interpretation of the determinants and directions of technical change," Research Policy, Elsevier, vol. 22(2), pages 102-103, April.
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