relation: http://eprints.imtlucca.it/649/
title: Innovation and corporate growth in the evolution of the drug industry
creator: Pammolli, Fabio
creator: Bottazzi, Giulio
creator: Dosi, Giovanni
creator: Lippi, Marco
creator: Riccaboni, Massimo
subject: HD28 Management. Industrial Management
subject: RM Therapeutics. Pharmacology
description: This work studies the processes of growth of the worlds top 150 pharmaceutical firms, on the grounds of an original database which also allows disaggregate analysis at the level of single therapeutical classes and chemical entities. Our findings show that the industry -- whose long-term evolution is driven by innovation, imitation and permanent creation of new markets -- displays (i) "fat tails" in the distribution of growth shocks, present at all levels of aggregation, with (relatively rare) big "spurs of growth", (ii) a significant autocorrelation of growth rates, (iii) a fall of variance of growth rates with size entirely dependent on corporate diversification patterns, in turn plausibly shaped by the "competence scope" of each firm, and (iv) different "lifecycles" of diverse types of products, and persistent forms of heterogeneity across firms in terms of innovative output, which, however, do not not seem to affect comparative growth performances.
publisher: Elsevier
date: 2001
type: Article
type: PeerReviewed
identifier:   Pammolli, Fabio and Bottazzi, Giulio and Dosi, Giovanni and Lippi, Marco and Riccaboni, Massimo  Innovation and corporate growth in the evolution of the drug industry.  International Journal of Industrial Organization, 19 (7).  1161 - 1187.  ISSN 0167-7187      (2001)  
relation: http://www.sciencedirect.com/science/article/pii/S0167718701000686
relation: 10.1016/S0167-7187(01)00068-6