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Research Network Position and Innovative Performance: Evidence from the Pharmaceutical Industry

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  • Maureen McKelvey

    ()
    (University of Gothenburg, Institute for Innovation and Entrepreneurship, School of Business, Economics and Law)

  • Bastian Rake

    ()
    (Friedrich Schiller University Jena, Graduate College "The Economics of Innovative Change")

Abstract

This paper explores how and why collaboration with different types of partners and the position within a research network can affect firms' innovative performance in terms of product innovations. A detailed empirical analysis is carried out in the biotechnology and pharmaceutical industry. This industry is characterized by a rapidly developing, complex, and dispersed knowledge base, where one would expect positive benefits from collaboration and the position within a network for innovative output. The paper uses a unique dataset in pharmaceutical cancer research based on scientific co-publications and new drug approvals. We apply social network analysis and count data regressions. We observe that collaboration with a diverse set of partners from academia and the network position in terms of eigenvector centrality is positively related to product innovation. However, we do not find a general positive association between collaboration, particularly with biotechnology companies, and product innovation or between central network positions and product innovation. Therefore, these results require a re-assessment of the role of scientific collaboration and biotechnology companies in the development of the pharmaceutical industry.

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Bibliographic Info

Paper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2012-021.

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Date of creation: 11 May 2012
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Handle: RePEc:jrp:jrpwrp:2012-021

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Keywords: Research Networks; Research Collaboration; Innovative Performance; Pharmaceuticals;

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