This book examines an important phenomenon for competitiveness and innovation in industry: namely the growing use of scientific principles in industrial research. Industrial innovation still arises from systematic trial-and-error experiments with many designs and objects, but these experiments are being guided by a more rational understanding of phenomena. This has important implications for market structure, firm strategies and competition. Science and Innovation focuses on the pharmaceutical industry. It discusses the changes that the notable advances in the life sciences since the 1980s have exerted on the strategies of drug companies, the organization of their internal research, their relationships with scientific institutions, the division of labour between large pharmaceutical firms and small research-intensive suppliers, the productivity of drug discovery and the productivity of R & D.
• An up-to-date, comprehensive examination of the innovation process and its economic implications in the pharmaceutical industry • Of interest not only to economists and management scholars, but also to policy makers, companies and scientists • Demonstrates the methodology of both managerial disciplines and applied economics
List of figures; List of tables; Preface; List of abbreviations; 1. Introduction; 2. Science and innovation in pharmaceutical research; 3. Economic implications of greater scientific intensity in drug research; 4. In-house scientific research and innovation: case studies of large US pharmaceutical companies; 5. Scientific research and drug discovery: an econometric investigation; 6. A model of the innovation cycle in the pharmaceutical industry; 7. Complementarity and external linkages: the strategies of large firms in biotechnology; 8. Conclusions; Notes; References; Index.