Scale, scope, and spillovers: The determinants of research productivity in drug discovery

RAND Journal of Economics

Volumn 27, Issue 1, 1996, Pages 32-59

  Henderson, Rebecca ^a   Cockburn, Iain ^a  

^a NONE

Author keywords

[No Author keywords available]

Indexed keywords

ARTICLE; DRUG INDUSTRY; ECONOMICS; HUMAN; PRODUCTIVITY; RESEARCH; STATISTICAL MODEL; STATISTICS;

DRUG INDUSTRY; EFFICIENCY; HUMANS; MODELS, ECONOMETRIC; RESEARCH;

EID: 0030093218     PISSN: 07416261     EISSN: None     Source Type: Journal    
DOI: 10.2307/2555791     Document Type: Article

References (52)

1. ACS, Z.J. AND AUDRETSCH, D.B. "Innovation in Large and Small Firms: An Empirical Analysis." American Economic Review. Vol. 78 (1988), pp. 678-690.
2. ARROW, K.J. "Economic Welfare and the Allocation of Resources for Invention." In R. Nelson, ed., The Rate and Direction of Inventive Activity. Princeton: Princeton University Press, 1962.
3. BALDWIN, W.L. AND Scon, J.T. Market Structure and Technological Change. Chur, Switzerland: Harwood Academic Publishers, 1987.
4. BOUND, J., CUMMINS, C., GRILICHES, Z., HALL, B.H., AND JAFFE, A. "Who Does R&D and Who Patents?" In Z. Griliches, ed., R&D, Patents and Productivity. Chicago: Chicago University Press, 1984.
5. CAMERON, A.C. AND TRIVEDI, P.K. "Econometric Models Based on Count Data: Comparisons and Applications of Some Estimators and Tests." Journal of Applied Econometrics, Vol. 1 (1986), pp. 29-53.
6. CAVES, D.W., CHRISTENSEN, L.R., AND TRETHEWAY, M.W. "Economies of Density versus Economies of Scale: Why Trunk and Local Service Airline Costs Differ." RAND Journal of Economics, Vol. 15 (1984), pp. 471-489.
7. CHANDLER, A.D. Scale and Scope: The Dynamics of Industrial Capitalism. Cambridge, Mass.: MIT Press, 1990.
8. COCKBURN, I.M. AND HENDERSON, R.M. "Racing to Invest? The Dynamics of Competition in Ethical Drug Discovery." Journal of Economics and Management Strategy, Vol. 3 (1994), pp. 481-519.
9. COCKS, D. "Product Innovation and the Dynamic Elements of Competition in the Ethical Pharmaceutical Industry." In R. Helms, ed., Drug Development and Marketing. Washington, D.C.: American Enterprise Institute, 1975.
10. COHEN, W.M. AND LEVIN, R.C. "Empirical Studies of Innovation and Market Structure." In R. Schmalensee and R.D. Willig, eds., Handbook of Industrial Organization. New York: North-Holland, 1989.
11. _ AND LEVINTHAL, D.A. "Innovation and Learning: The Two Faces of R&D." Economic Journal, Vol. 99 (1989), pp. 569-596.
12. COMANOR, W.S. "Research and Technical Change in the Pharmaceutical Industry." Review of Economics and Statistics, Vol. 47 (1965), pp. 182-190.
13. CUSHMAN, D.W., CHEUNG, H.S., SABO, E.F., AND ONDETTI, M.A. "Design of Potent Competitive Inhibitors of Angiotensin-Converting Enzyme." Biochemistry, Vol. 16 (1977), pp. 5484-5491.
14. DASGUPTA, P. AND STIGLITZ, J. "Industrial Structure and the Nature of Innovative Activity." Economic Journal. Vol. 90 (1980), pp. 266-293.
15. FREEMAN, C. The Economics of Industrial Innovation. 2d ed. Cambridge, Mass.: MIT Press, 1982.
16. GAMBARDELLA, A. "Competitive Advantages from In-House Scientific Research: The U.S. Pharmaceutical Industry in the 1980s." Research Policy, Vol. 21 (1992) pp. 391-407.
17. GLASS, J.C. AND MCKILLOP, D.G. "An Empirical Analysis of Scale and Scope Economies and Technical Change in an Irish Multiproduct Banking Firm." Journal of Banking and Finance, Vol. 16 (1992), pp. 423-437.
18. GOURIEROUX, C., MONFORT, A., AND TROGNON, A. "Pseudo Maximum Likelihood Methods: Applications to Poisson Models." Econometrica, Vol. 52 (1984), pp. 701-720.
19. GRABOWSKI, H. AND VERNON, J. "A New Look at the Returns and Risks to Pharmaceutical R&D." Management Science, Vol. 36 (1990), pp. 804-821.
20. GRAVES, S.B. AND LANGOWITZ, N. "Innovative Productivity and Returns to Scale in the Pharmaceutical Industry." Strategic Management Journal, Vol. 14 (1993), pp. 593-605.
21. GRILICHES, Z., ed. R&D, Patents and Productivity. Chicago: Chicago University Press, 1984.
22. _. "Patent Statistics as Economic Indicators: A Survey." Journal of Economic Literature, Vol. 28 (1990), pp. 1661-1707.
23. _. "The Search for R&D Spillovers." Scandinavian Journal of Economics, Vol. 94 (1992), pp. 29-47.
24. GROSS, F., ed. Decision Making in Drug Research. New York: Raven Press, 1983.
25. GROSSMAN, G.M. AND HELPMAN. E. Innovation and Growth in the Global Economy. Cambridge, Mass.: MIT Press, 1991.
26. HALL, B.H., GRILICHES, Z., AND HAUSMAN, J.A. "Patents and R and D: Is There a Lag?" International Economic Review, Vol. 27 (1986), pp. 265-283.
27. _, CUMMINS, C., LADERMAN, E.S., AND MUNDY, J. "The R&D Masterfiles Documentation." NBER Technical Working Paper no. 72, 1988.
28. HAUSMAN, J., HALL, B.H., AND GRILICHES, Z. "Econometric Models for Count Data With an Application to the Patents-R&D Relationship." Econometrica, Vol. 52 (1984), pp. 909-938.
29. HELFAT, C. "Know-how Complementarities and Knowledge Transfer Within Firms: The Case of R&D." Mimeo, Wharton Graduate School of Business, University of Pennsylvania, 1994.
30. HENDERSON, R.M. "The Evolution of Integrative Competence: Innovation in Cardiovascular Drug Discovery." Industrial and Corporate Change, Vol. 3 (1994), pp. 607-630.
31. HOLMSTRÖM, B. "Agency Costs and Innovation." Journal of Economic Behavior and Organization. Vol. 12 (1989), pp. 305-327.
32. JAFFE, A.B. "Technological Opportunity and Spillovers of R&D: Evidence from Firms' Patents, Profits, and Market Value.& American Economic Review. Vol. 76 (1986), pp. 984-1001.
33. JENSEN, E.J. "Research Expenditures and the Discovery of New Drugs." Journal of Industrial Economics, Vol. 36 (1987), pp. 83-95.
34. LIPPMAN, S.A. AND RUMELT, R.P. "Uncertain Imitability: An Analysis of Interfirm Differences in Efficiency under Competition." Bell Journal of Economics, Vol. 13 (1982), pp. 418-438.
35. MAIRESSE, J. AND MOHNEN, P. "R&D and Productivity: A Survey of the Econometric Literature." Mimeo, INSEE, Paris, 1995.
36. PANZAR, J.C. "Technological Determinants of Firm and Industry Structure." In R. Schmalensee and R.D. Willig, eds., Handbook of Industrial Organization. New York: North-Holland, 1989.
37. _ AND WILLIG, R.D. "Economies of Scope." American Economic Review, Vol. 71 (1981), pp. 268-272.
38. PAVITT, K., ROBSON, M., AND TOWNSEND, J. "The Size Distribution of Innovative Firms in the U.K.: 1945-1983." Journal of Industrial Economics, Vol. 35 (1987), pp. 297-316.
39. REINGANUM, J.F. "The Timing of Innovation: Research, Development, and Diffusion." In R. Schmalensee and R.D. Willig, eds., Handbook of Industrial Organization. New York: North-Holland, 1989.
40. ROMER, P.M. "Increasing Returns and Long-Run Growth." Journal of Political Economy, Vol. 94 (1986), pp. 1002-1037.
41. RUMELT, R.P. "How Much Does Industry Matter?" Strategic Management Journal, Vol. 12 (1991), pp. 167-185.
42. SCHMALENSEE, R. "Do Markets Differ Much?" American Economic Review, Vol. 75 (1985), pp. 341-351.
43. SCHWARTZMAN, D. Innovation in the Pharmaceutical Industry. Baltimore: Johns Hopkins University Press, 1976.
44. SCHUMPETER, J.A. Capitalism, Socialism and Democracy. 3d ed. New York: Harper, 1950.
45. SILK, A.J. AND BERNDT, E.R. "Scale and Scope Effects on Advertising Agency Costs." Marketing Science, Vol. 12 (1993), pp. 53-72.
46. SLOAN, F.A., ed. Valuing Health Care: Costs, Benefits, and Effectiveness of Pharmaceuticals and other Medical Technologies. New York: Cambridge University Press, 1995.
47. SPENCE, M. "Cost Reduction, Competition, and Industry Performance." Econometrica, Vol. 52 (1984), pp. 101-121.
48. SPILKER, B. Multinational Drug Companies: Issues in Drug Discovery and Development. New York: Raven Press, 1989.
49. TEECE, D. "Economies of Scope and the Scope of the Enterprise." Journal of Economic Behavior and Organization, Vol. 1 (1980), pp. 223-247.
50. VERNON, J.M. AND GUSEN, P. "Technical Change and Firm Size: The Pharmaceutical Industry." Review of Economics and Statistics, Vol. 56 (1974), pp. 294-302.
51. WARD, M.R. AND DRANOVE, D. "The Vertical Chain of Research and Development in the Pharmaceutical Industry." Economic Inquiry, Vol. 33 (1995), pp. 70-87.
52. ZENGER, T.R. "Explaining Organizational Diseconomies of Scale in R&D: Agency Problems and the Allocation of Engineering Talent, Ideas, and Effort by Firm Size." Management Science, Vol. 40 (1994), pp. 708-729.