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Economies of Scale in Experimentation: Knowledge and Technology in Pharmaceutical R&D

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  • Nightingale, Paul

Abstract

This paper explores how changes in genetics, database, high-throughput screening and bioinformatics technologies have allowed pharmaceutical firms to exploit economies of scale in experimentation. Traditional craft-based, sequential experimentation in chemistry and biology has been complemented by firstly, the automated, mass-production analysis of populations and secondly, by "in silico" experimentation using simulations and databases. The changes are analysed within a Chandlerian framework that highlights how increases in the "throughput" of R&D are dependent on organizational and managerial responses to systemic uncertainty. Copyright 2000 by Oxford University Press.

Suggested Citation

  • 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 315-359, June.
  • Handle: RePEc:oup:indcch:v:9:y:2000:i:2:p:315-59
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    Citations

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    Cited by:

    1. Sandro Mendonca, 2006. "The Revolution Within: Ict And The Shifting Knowledge Base Of The World'S Largest Companies," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(8), pages 777-799.
    2. Criscuolo, Paola, 2005. "On the road again: Researcher mobility inside the R&D network," Research Policy, Elsevier, vol. 34(9), pages 1350-1365, November.
    3. Yao-Sheng Liao, 2011. "The effect of human resource management control systems on the relationship between knowledge management strategy and firm performance," International Journal of Manpower, Emerald Group Publishing, vol. 32(5/6), pages 494-511, August.
    4. Jörg Mahlich, 2010. "Patents and performance in the Japanese pharmaceutical industry: An institution-based view," Asia Pacific Journal of Management, Springer, vol. 27(1), pages 99-113, March.
    5. Udo Staber, 2010. "A Social-Evolutionary Perspective on Regional Clusters," Chapters,in: The Handbook of Evolutionary Economic Geography, chapter 10 Edward Elgar Publishing.
    6. Finn Valentin & Henrich Dahlgren & Rasmus Lund Jensen, 2006. "Research Strategies in Science-based Start-ups - Effects on performance in Danish and Swedish biotechnology," DRUID Working Papers 06-11, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    7. Jacqueline Senker, 2006. "Biotechnology Alliances in the European Pharmaceutical Industry: Past, Present and Future," SPRU Working Paper Series 137, SPRU - Science and Technology Policy Research, University of Sussex.
    8. repec:spr:scient:v:71:y:2007:i:1:d:10.1007_s11192-007-1650-y is not listed on IDEAS
    9. Nicola Lacetera, 2003. "Incentives and spillovers in R&D activities: an agency-theoretic analysis of industry-university relations," Microeconomics 0312004, EconWPA.
    10. Taalbi, Josef, 2015. "Development Blocks in Innovation Networks. The Swedish Manufacturing Industry, 1970-2007," MPRA Paper 64549, University Library of Munich, Germany, revised 23 May 2015.
    11. Stefano Brusoni & Paola Criscuolo & Aldo Geuna, 2005. "The knowledge bases of the world's largest pharmaceutical groups: what do patent citations to non-patent literature reveal?," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 14(5), pages 395-415.
    12. Guerzoni, Marco & Taylor Aldridge, T. & Audretsch, David B. & Desai, Sameeksha, 2014. "A new industry creation and originality: Insight from the funding sources of university patents," Research Policy, Elsevier, vol. 43(10), pages 1697-1706.
    13. Guerzoni, Marco & Aldridge, Taylor & Audretsch, David B & Sameeksha, Desai, 2012. "University Knowledge, Originality of Patents and the Creation of New Industries," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201219, University of Turin.
    14. repec:spr:manint:v:47:y:2007:i:5:d:10.1007_s11575-007-0038-9 is not listed on IDEAS
    15. repec:spr:joevec:v:27:y:2017:i:3:d:10.1007_s00191-017-0491-y is not listed on IDEAS
    16. Paola Criscuolo & Rajneesh Narula, 2007. "Using multi-hub structures for international R&D: Organisational inertia and the challenges of implementation," Management International Review, Springer, vol. 47(5), pages 639-660, September.
    17. Emmanuel Duguet & Stéphanie Monjon, 2004. "Is innovation persistent at the firm Level . An econometric examination comparing the propensity score and regression methods," Cahiers de la Maison des Sciences Economiques v04075, Université Panthéon-Sorbonne (Paris 1).
    18. Simeth, Markus & Lhuillery, Stephane, 2015. "How do firms develop capabilities for scientific disclosure?," Research Policy, Elsevier, vol. 44(7), pages 1283-1295.
    19. Loasby, Brian J., 2002. "The evolution of knowledge: beyond the biological model," Research Policy, Elsevier, vol. 31(8-9), pages 1227-1239, December.
    20. Joao Mota & Luis M. de Castro, 2004. "A Capabilities Perspective on the Evolution of Firm Boundaries: A Comparative Case Example from the Portuguese Moulds Industry," Journal of Management Studies, Wiley Blackwell, vol. 41(2), pages 295-316, March.
    21. Mahlich, Jörg C. & Roediger-Schluga, Thomas, 2001. "The Changing Nature of Pharmaceutical R&D - Opportunities for Asia?," Research Memorandum 001, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    22. Keith Pavitt, 2003. "The Process of Innovation," SPRU Working Paper Series 89, SPRU - Science and Technology Policy Research, University of Sussex.
    23. Christian Zeller, 2002. "Project Teams as Means of Restructuring Research and Development in the Pharmaceutical Industry," Regional Studies, Taylor & Francis Journals, vol. 36(3), pages 275-289.
    24. Engwall, Mats & Freilich, Jonatan, 2014. "Architectural Lock-in of the Drug Development Process," INDEK Working Paper Series 2014/4, Royal Institute of Technology, Department of Industrial Economics and Management.
    25. Siepel, Josh & Cowling, Marc & Coad, Alex, 2017. "Non-founder human capital and the long-run growth and survival of high-tech ventures," Technovation, Elsevier, vol. 59(C), pages 34-43.

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