Success in Pharmaceutical Research: The Changing Role of Scale and Scope Economies, Spillovers and Competition
AbstractThis paper investigates the determinants of success in the development of new drugs. In specific, it explores the factors of success in drug development programs at different stages of innovation process. We use economies of scale, scope, R&D competition and technological spillovers as explanatory variables and test whether the effect of these variables on the success of a project differs in relation to the discovery and development stages of innovation, respectively. Our main finding is that spillovers, including spillovers from collaboration, are important in explaining the success of projects during the discovery stage of innovation, while in the later development stage, the effects of competition outweigh any benefits from spillovers.
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Bibliographic InfoPaper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2010-045.
Date of creation: 26 Jul 2010
Date of revision:
economies of scale and scope; spillovers; competition; R&D; innovation process;
Find related papers by JEL classification:
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
- L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-07-31 (All new papers)
- NEP-COM-2010-07-31 (Industrial Competition)
- NEP-CSE-2010-07-31 (Economics of Strategic Management)
- NEP-INO-2010-07-31 (Innovation)
- NEP-PPM-2010-07-31 (Project, Program & Portfolio Management)
- NEP-SBM-2010-07-31 (Small Business Management)
- NEP-TID-2010-07-31 (Technology & Industrial Dynamics)
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- Thomas Bolli & Martin Wörter, 2013. "Technological Diversification and Innovation Performance," KOF Working papers 13-336, KOF Swiss Economic Institute, ETH Zurich.
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