INNOVATIVE PRODUCTIVITY AND RETURNS TO SCALE IN THE PHARMACEUTICAL INDUSTRY.

Authors :: Graves, Samuel B.
Langowitz, Nan S.
Source :: Strategic Management Journal (John Wiley & Sons, Inc.) - 1980 to 2009; Nov93, Vol. 14 Issue 8, p593-605, 13p
Publication Year :: 1993
Abstract: This study shows that firms in the pharmaceutical industry experience decreasing returns to scale in R&D as the level of R&D expenditures rises. The paper presents the results of our study of the innovative output of 16 pharmaceutical firms over a 19 year period. Given the strong correlation between R&D budgets and firm size, our study suggests the wave of mergers in the industry may yield less innovative productivity than managers expect. [ABSTRACT FROM AUTHOR]

Subjects :: INDUSTRIAL productivity
PHARMACEUTICAL industry
RESEARCH & development
TECHNOLOGICAL innovations
BUSINESS size
COMPETITION
INDUSTRIAL statistics
MARKETING strategy
INNOVATION adoption

Language :: English
ISSN :: 01432095
Volume :: 14
Issue :: 8
Database :: Complementary Index
Journal :: Strategic Management Journal (John Wiley & Sons, Inc.) - 1980 to 2009
Publication Type :: Academic Journal
Accession number :: 12493468
Full Text :: https://doi.org/10.1002/smj.4250140803