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The Evolution of Firm Growth Dynamics in the US Pharmaceutical Industry

Author

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  • Pelin Demirel
  • Mariana Mazzucato

Abstract

Demirel P. and Mazzucato M. The evolution of firm growth dynamics in the US pharmaceutical industry, Regional Studies. This paper studies the dynamics of firm growth and firm size distribution in the pharmaceutical industry from 1950 to 2003. Growth dynamics are studied in the context of how the size composition of firms changes, how innovation patterns change, and how location leads to growth differentials among US firms. It is found that the growth advantage of small pharmaceutical firms increases after the 1980s as small firms become more active in patenting and their patenting activities become more 'persistent'. Location is found to affect growth differences only for the most innovative firms (that is, for non-innovative firms, location does not matter). [image omitted] Demirel P. et Mazzucato M. L'evolution de la dynamique de la croissance des entreprises dans l'industrie pharmaceutique aux Etats-Unis, Regional Studies. Cet article cherche a etudier la dynamique de la croissance des entreprises et de la distribution des entreprises par taille dans l'industrie pharmaceutique de 1950 jusqu'a 2003. On etudie la dynamique de la croissance pour determiner comment la distribution des entreprises par taille evolue, comment la structure de l'innovation change, et comment la localisation entraine des ecarts de la croissance des entreprises aux Etats-Unis. Il s'avere que l'avantage des petites entreprises pharmaceutiques en termes de croissance augmente apres les annees 1980 au fur et a mesure que les petites entreprises obtiennent davantage de brevets et que le brevetage 'persiste'. Il s'avere que la localisation n'influe sur les ecarts de croissance que pour les entreprises les plus innovatrices (c'est a dire que la localisation n'importe pas pour les entreprises qui ne sont pas innovatrices). Croissance des entreprises Innovation Industrie pharmaceutique Demirel P. und Mazzucato M. Die Evolution der Wachstumsdynamik von Firmen in der pharmazeutischen Industrie der USA, Regional Studies. In diesem Beitrag untersuchen wir die Dynamik von Firmenwachstum und Firmengrossenverteilung in der pharmazeutischen Industrie im Zeitraum von 1950 bis 2003. Die Wachstumsdynamik wird im Kontext der Frage untersucht, wie sich die Grossenzusammensetzung der Firmen andert, wie sich die Innovationsablaufe andern und wie der Standort zu Wachstumsdifferentialen zwischen Firmen in den USA fuhrt. Wir stellen fest, dass der Wachstumsvorteil kleiner pharmazeutischer Firmen nach den achtziger Jahren zunimmt, da die kleineren Firmen bei der Patentierung aktiver und ihre Patentierungsaktivitaten bestandiger werden. Der Standort wirkt sich hingegen nur bei den innovativsten Firmen auf Wachstumsdifferenzen aus (mit anderen Worten, bei nicht innovativen Firmen kommt es nicht auf den Standort an). Firmenwachstum Innovation Pharmaindustrie Demirel P. y Mazzucato M. La evolucion de las dinamicas de crecimiento de empresas en la industria farmaceutica de los Estados Unidos, Regional Studies. En este articulo analizamos las dinamicas del crecimiento de empresas y la distribucion del tamano de las empresas en la industria farmaceutica de 1950 a 2003. Estudiamos las dinamicas de crecimiento en cuanto a como cambia la composicion del tamano de las empresas, como cambian los modelos de innovacion y como lleva la ubicacion a diferenciales de crecimiento entre empresas estadounidenses. Observamos que la ventaja de crecimiento de pequenos laboratorios farmaceuticos aumenta despues de la decada de los ochenta cuando las pequenas empresas se vuelven mas activas con las patentes y las actividades relacionadas con patentes son mas 'persistentes'. Vemos que la ubicacion afecta a las diferencias de crecimiento solamente en empresas mas innovadoras (es decir, para las empresas no tan innovadoras la ubicacion no importa). Crecimiento de empresas Innovacion Industria farmaceutica

Suggested Citation

  • Pelin Demirel & Mariana Mazzucato, 2010. "The Evolution of Firm Growth Dynamics in the US Pharmaceutical Industry," Regional Studies, Taylor & Francis Journals, vol. 44(8), pages 1053-1066.
    • Handle: RePEc:taf:regstd:v:44:y:2010:i:8:p:1053-1066
    DOI: 10.1080/00343400903241469
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    References listed on IDEAS

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    1. Giovanni Dosi, 2008. "Statistical Regularities in the Evolution of Industries. A Guide through Some Evidence and Challenges for the Theory," L'industria, Società editrice il Mulino, issue 2, pages 185-220.
    2. Francesca Lotti & Enrico Santarelli & Marco Vivarelli, 2009. "Defending Gibrat’s Law as a long-run regularity," Small Business Economics, Springer, vol. 32(1), pages 31-44, January.
    3. G. Bottazzi & E. Cefis & G. Dosi & A. Secchi, 2003. "Invariances and Diversities in the Evolution of Manufacturing Industries," Working Papers 03-17, Utrecht School of Economics.
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    1. O. V. Kuznetsova & R. O. Bobrovsky, 2022. "Location of the Largest Pharmaceutical Companies in Russia: Contribution to Regional Divergence or Convergence?," Regional Research of Russia, Springer, vol. 12(2), pages 124-132, June.
    2. Jean Dubé & Cédric Brunelle, 2014. "Dots to dots: a general methodology to build local indicators using spatial micro-data," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(1), pages 245-272, August.
    3. Rachel Bocquet & Christian Le Bas & Caroline Mothe & Nicolas Poussing, 2017. "CSR, Innovation, and Firm Performance in Sluggish Growth Contexts: A Firm-Level Empirical Analysis," Journal of Business Ethics, Springer, vol. 146(1), pages 241-254, November.
    4. Timo Busch & Maximilian Schnippering, 2022. "Corporate social and financial performance: Revisiting the role of innovation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(3), pages 635-645, May.
    5. James D. Campbell, 2019. "Investment in ideas when genius and madness look alike," Economics Bulletin, AccessEcon, vol. 39(2), pages 947-953.
    6. Elias Dinopoulos & Bulent Unel, 2014. "Firm Productivity, Occupational Choice, and Inequality in a Global Economy (revised March 2015)," Departmental Working Papers 2014-04, Department of Economics, Louisiana State University.

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