eprintid: 649
rev_number: 12
eprint_status: archive
userid: 2
dir: disk0/00/00/06/49
datestamp: 2011-06-30 14:25:58
lastmod: 2011-08-31 14:40:39
status_changed: 2011-06-30 14:25:58
type: article
metadata_visibility: show
item_issues_count: 0
creators_name: Pammolli, Fabio
creators_name: Bottazzi, Giulio
creators_name: Dosi, Giovanni
creators_name: Lippi, Marco
creators_name: Riccaboni, Massimo
creators_id: f.pammolli@imtlucca.it
creators_id: 
creators_id: 
creators_id: 
creators_id: massimo.riccaboni@imtlucca.it
title: Innovation and corporate growth in the evolution of the drug industry
ispublished: pub
subjects: HD28
subjects: RM
divisions: EIC
full_text_status: none
keywords: Innovation; Corporate growth; Drug industry; Evolution
note: JEL classification codes: L1; L6; O3
abstract: 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.
date: 2001
publication: International Journal of Industrial Organization
volume: 19
number: 7
publisher: Elsevier
pagerange: 1161 - 1187
id_number: 10.1016/S0167-7187(01)00068-6
refereed: TRUE
issn: 0167-7187
official_url: http://www.sciencedirect.com/science/article/pii/S0167718701000686
citation:   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)