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Internal Basic Research, External Basic Research and the Technological Performance of Pharmaceutical Firms

  • Leten, Bart

    (Hogeschool-Universiteit Brussel (HUB), Belgium)

  • Kelchtermans, Stijn

    ()

    (Hogeschool-Universiteit Brussel (HUB), Belgium)

  • Belderbos, Ren

    (UNU-MERIT ,The Netherlands; Maastricht University, The Netherlands)

We evaluate the impact of basic research on pharmaceutical firms technological performance, distinguishing between internal basic research and the exploitation of external basic research findings. We find that firms increase their performance by engaging more in internal basic research, in particular if basic research is conducted in collaboration with university scientists. The exploitation of external basic research improves performance, while the magnitude increases with firms involvement in internal basic research. Hence, internal basic research and the exploitation of external basic research are complements, suggesting that internal basic research provides firms with the skills to exploit external basic research more effectively.

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Paper provided by Hogeschool-Universiteit Brussel, Faculteit Economie en Management in its series Working Papers with number 2010/12.

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Length: 32 page
Date of creation: Mar 2010
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Handle: RePEc:hub:wpecon:201012
Contact details of provider: Web page: http://research.hubrussel.be

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