The evolution of the pharmaceutical-biotechnology industry

Author

Hans-Werner Gottinger and Celia Umali

Business History, 2008, vol. 50, issue 5, pages 583-601

Abstract: This paper presents an application of network economics to the formation of alliances in the biotechnology-pharmaceutical industry. The framework analysis provides insights under which firms create hybrid governance forms, integrate strategy and economics into a more holistic perspective on network strategy. Firm network types link network economies, competencies and market structure, creating integration between participants and change as additional dimensions. 'Change' introduces a dynamic, evolutionary aspect. The resulting contructs involve the network dimension as a mechanism design for investigating the evolution and life cycles of firm networks. An analysis of alliances within the pharmaceutical and biotechnology industries develops the framework, including a historical tracing, and an empirical examination of the relationship between collaboration rate (CR) and market performance of major globally operating pharmaceutical firms. Case examples, supported quantitatively and qualitatively, provide evidence for the efficacy and implications of the network dimension.

Keywords: strategic alliances; network economies; biotechnology-pharmaceutical industries; event analysis; pharmaco-economics (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://www.tandfonline.com/doi/abs/10.1080/00076790802246020 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:taf:bushst:v:50:y:2008:i:5:p:583-601

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/FBSH20

Access Statistics for this article

Business History is currently edited by Professor John Wilson and Professor Steven Toms

More articles in Business History from Taylor & Francis Journals
Series data maintained by Michael McNulty (michael.mcnulty@tandf.co.uk).

For further details log on website :
http://econpapers.repec.org/article/tafbushst/v_3a50_3ay_3a2008_3ai_3a5_3ap_3a583-601.htm