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A research note on market creation in the pharmaceutical industry

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  • Darroch, Jenny
  • Miles, Morgan P.

Abstract

When a firm launches a market-creating innovation, it launches a new product for which there are no close product substitutes. Thus, the new product causes a shift in the existing product-market structure of an industry. This paper reports on the findings of the analysis of 51 large pharmaceutical firms and their market-creating activities. The study suggests that market-creating firms have capabilities in both R&D and marketing. Furthermore, market-creating firms enjoy stronger efficiencies, manage costs better and make more profitable use of their assets.

Suggested Citation

  • Darroch, Jenny & Miles, Morgan P., 2011. "A research note on market creation in the pharmaceutical industry," Journal of Business Research, Elsevier, vol. 64(7), pages 723-727, July.
  • Handle: RePEc:eee:jbrese:v:64:y:2011:i:7:p:723-727
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    References listed on IDEAS

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    Cited by:

    1. repec:eee:jbrese:v:77:y:2017:i:c:p:131-139 is not listed on IDEAS
    2. Nikolopoulos, Konstantinos & Buxton, Samantha & Khammash, Marwan & Stern, Philip, 2016. "Forecasting branded and generic pharmaceuticals," International Journal of Forecasting, Elsevier, vol. 32(2), pages 344-357.
    3. S. Buxton & Kostas Nikolopoulos & M. Khammash & P. Stern, 2015. "Modelling and Forecasting Branded and Generic Pharmaceutical Life Cycles: Assessment of the Number of Dispensed Units," Working Papers 15004, Bangor Business School, Prifysgol Bangor University (Cymru / Wales).
    4. repec:eee:ijrema:v:34:y:2017:i:1:p:3-21 is not listed on IDEAS

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