Erik Strøjer Madsen

Low R&D Efficiency in Large Pharmaceutical Companies

Publikation: Bidrag til tidsskrift/Konferencebidrag i tidsskrift /Bidrag til avisTidsskriftartikelForskningpeer review

Dokumenter

  • 7-MadsenWu

    Accepteret manuskript, 186 KB, PDF-dokument

Large pharmaceutical companies will face serious challenges in the future when several of their blockbuster drugs run out of patents, and meanwhile a growing political pressure to stop the fast increase in health care expenditures has merged. The recent wave of mergers and acquisitions (M&A) within the industry can be seen as an effective means to reduce costs and compensate for the reduced earnings from patented drugs. The paper examines the main development in expenditure on research and development (R&D) and number of patents in the industry with a focus on the role of company size. The analysis builds on a data set containing information of both patents and R&D expenditure from the world’s top 90 largest pharmaceutical companies, as well as their account data from 2002 to 2013. The empirical part estimates the firm size effect on R&D efficiency and the amount of investment allocated to R&D. Fixed effects estimation models have been applied to control for differences in firm characteristics. We find significantly lower innovation activities in large companies with low innovation productivity as well. The M&A strategy of the large pharmaceutical companies may have been their wise move to catch up on new drugs and revenues.
OriginalsprogEngelsk
TidsskriftAmerican Journal of Medical Research
Vol/bind3
Nummer2
Sider (fra-til)141-151
Antal sider11
ISSN2376-4481
StatusUdgivet - 2016

Se relationer på Aarhus Universitet Citationsformater

Download-statistik

Ingen data tilgængelig

ID: 103275097