IDEAS home Printed from https://ideas.repec.org/p/hhs/kthind/2014_004.html
   My bibliography  Save this paper

Architectural Lock-in of the Drug Development Process

Author

Listed:
  • Engwall, Mats

    () (Department of Industrial Economics and Management, Royal Institute of Technology, Stockholm)

  • Freilich, Jonatan

    () (Department of Industrial Economics and Management, Royal Institute of Technology, Stockholm)

Abstract

The theory of technological evolution and organizational lock-in are based on an empirical foundation where technology is manifested in a tangible product. However, in industries producing chemicals, services, art, health care, or complex product systems, the technological design of the product has limit explanatory power for understanding technological evolution. Anchored in a case study from the pharmaceutical industry, this paper addresses the significance of the technologies and architecture of the R&D process in order to understand dynamics of innovation and technological evolution in such industries. The case shows how the technology and design of the process architecture shape the content of pharmaceutical R&D, enabling and hindering necessary knowledge creation for product innovation.

Suggested Citation

  • 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.
  • Handle: RePEc:hhs:kthind:2014_004
    as

    Download full text from publisher

    File URL: https://static.sys.kth.se/itm/wp/indek/indekwp4.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Hobday, Mike, 1998. "Product complexity, innovation and industrial organisation," Research Policy, Elsevier, vol. 26(6), pages 689-710, February.
    2. Arthur, W Brian, 1989. "Competing Technologies, Increasing Returns, and Lock-In by Historical Events," Economic Journal, Royal Economic Society, vol. 99(394), pages 116-131, March.
    3. Leonhard Dobusch & Elke Schüßler, 2013. "Theorizing path dependence: a review of positive feedback mechanisms in technology markets, regional clusters, and organizations," Industrial and Corporate Change, Oxford University Press, vol. 22(3), pages 617-647, June.
    4. David, Paul A, 1985. "Clio and the Economics of QWERTY," American Economic Review, American Economic Association, vol. 75(2), pages 332-337, May.
    5. Dosi, Giovanni, 1993. "Technological paradigms and technological trajectories : A suggested interpretation of the determinants and directions of technical change," Research Policy, Elsevier, vol. 22(2), pages 102-103, April.
    6. Cappetta, Rossella & Cillo, Paola & Ponti, Anna, 2006. "Convergent designs in fine fashion: An evolutionary model for stylistic innovation," Research Policy, Elsevier, vol. 35(9), pages 1273-1290, November.
    7. Fixson, Sebastian K. & Park, Jin-Kyu, 2008. "The power of integrality: Linkages between product architecture, innovation, and industry structure," Research Policy, Elsevier, vol. 37(8), pages 1296-1316, September.
    8. Horvath, Michael & Schivardi, Fabiano & Woywode, Michael, 2001. "On industry life-cycles: delay, entry, and shakeout in beer brewing," International Journal of Industrial Organization, Elsevier, vol. 19(7), pages 1023-1052, July.
    9. Anna Cabigiosu & Arnaldo Camuffo, 2012. "Beyond the “Mirroring” Hypothesis: Product Modularity and Interorganizational Relations in the Air Conditioning Industry," Organization Science, INFORMS, vol. 23(3), pages 686-703, June.
    10. 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.
    11. DiMasi, Joseph A. & Hansen, Ronald W. & Grabowski, Henry G., 2003. "The price of innovation: new estimates of drug development costs," Journal of Health Economics, Elsevier, vol. 22(2), pages 151-185, March.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    process architecture; lock-in; technological evolution; drug development;

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:kthind:2014_004. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vardan Hovsepyan). General contact details of provider: http://edirc.repec.org/data/iikthse.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.