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The Impact of Publishing and Patenting Activities on New Product Development and Firm Performance: The Case of the US Pharmaceutical Industry

Author

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  • G. Steven McMillan

    (Penn State Abington, 1600 Woodland Road, Abington, PA 19001-3990, USA)

  • Alfredo Mauri

    (Department of Management, Saint Joseph's University, 5600 City Avenue, Philadelphia, PA 19131, USA)

  • Robert D. Halmilton

    (Department of General and Strategic Management, Fox School of Business and Management, Temple University, Philadelphia, PA 19122-6083, USA)

Abstract

This paper studies the role of publishing and patenting activities as predictors of new product development for a sample of companies in the U.S. pharmaceutical industry. The research also examines the relation between new product development and firm performance. Hypotheses are developed based on the well-established absorptive capacity literature. The results show that publishing scientific articles and stock of patents are both significant predictors of the number of new molecular entities (NMEs) for which a firm receives approval. In addition, the degree to which a firm builds on its own technology (measured as self-citations in its patents) also predicts NMEs, but the regression coefficient had an unexpected negative sign. Finally, the performance results confirm that the approval of NMEs is significantly associated with the market-to-book ratio of a firm. The managerial implications of these findings and study limitations are also discussed.

Suggested Citation

  • G. Steven McMillan & Alfredo Mauri & Robert D. Halmilton, 2003. "The Impact of Publishing and Patenting Activities on New Product Development and Firm Performance: The Case of the US Pharmaceutical Industry," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 7(02), pages 213-221.
    • Handle: RePEc:wsi:ijimxx:v:07:y:2003:i:02:n:s1363919603000799
    DOI: 10.1142/S1363919603000799
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    References listed on IDEAS

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    1. Bronwyn H. Hall, Adam Jaffe and Manuel Trajtenberg., 2000. "Market Value and Patent Citations: A First Look," Economics Working Papers E00-277, University of California at Berkeley.
    2. Hall, Bronwyn H. & Jaffe, Adam & Trajtenberg, Manuel, 2001. "Market Value and Patent Citations: A First Look," Department of Economics, Working Paper Series qt8vh1c20f, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
    3. Gambardella,Alfonso, 1995. "Science and Innovation," Cambridge Books, Cambridge University Press, number 9780521451185, January.
    4. Hall, Bronwyn H. & Jaffee, Adam & Trajtenberg, Manuel, 2000. "Market Value and Patent Citations: A First Look," Department of Economics, Working Paper Series qt1rh8k6z2, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
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    Cited by:

    1. Srivastava, Smita & Sahaym, Arvin & Allison, Thomas H., 2021. "Alert and Awake: Role of alertness and attention on rate of new product introductions," Journal of Business Venturing, Elsevier, vol. 36(4).
    2. Mary Beth Rousseau & Blake D. Mathias & Laura T. Madden & T. Russell Crook, 2016. "Innovation, Firm Performance, And Appropriation: A Meta-Analysis," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(03), pages 1-29, April.
    3. Kwangsoo Shin & Eungdo Kim & EuiSeob Jeong, 2018. "Structural Relationship and Influence between Open Innovation Capacities and Performances," Sustainability, MDPI, vol. 10(8), pages 1-18, August.

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