IMT Institutional Repository: No conditions. Results ordered -Date Deposited. 2024-03-29T08:24:37ZEPrintshttp://eprints.imtlucca.it/images/logowhite.pnghttp://eprints.imtlucca.it/2011-06-30T14:27:24Z2011-08-31T14:40:38Zhttp://eprints.imtlucca.it/id/eprint/636This item is in the repository with the URL: http://eprints.imtlucca.it/id/eprint/6362011-06-30T14:27:24ZA Breath of Fresh Air? Firm Type, Scale, Scope, and Selection Effects in Drug DevelopmentThis paper compares the innovation performance of established pharmaceutical firms and biotech companies, controlling for differences in the scale and scope of research. We develop a structural model to analyze more than 3,000 drug research and development projects advanced to preclinical and clinical trials in the United States between 1980 and 1994. Key to our approach is careful attention to the issue of selection. Firms choose which compounds to advance into clinical trials. This choice depends not only on the technical promise of the compound, but also on commercial considerations such as the expected profitability of the market or concerns about product cannibalization. After controlling for selection, we find that (a) even after controlling for scale and scope in research, established pharmaceutical firms are more innovative than newly entered biotech firms; (b) older biotech firms display selection behaviors and innovation performances similar to established pharmaceutical firms; and (c) compounds licensed during preclinical trials are as likely to succeed as internal compounds of the licensor, which is inconsistent with the "lemons" hypothesis in technology markets. Fabio Pammollif.pammolli@imtlucca.itAshish AroraAlfonso GambardellaLaura Magazzini2011-06-30T14:25:27Z2014-07-02T10:38:17Zhttp://eprints.imtlucca.it/id/eprint/654This item is in the repository with the URL: http://eprints.imtlucca.it/id/eprint/6542011-06-30T14:25:27ZThe nature and extent of the market for technology in biopharmaceuticalsThe biopharmaceutical industry is a typical example of the development of technological collaborations, as well as of technological competition, between larger established firms and smaller high-tech specialist firms (the so-called New Biotechnology Firms — NBFs). These two types of firms perform innovative activities at different stages, with different degree of risk, and with different probability of failure. By using a comprehensive database of 2078 drug R&D projects promoted all over the world during the 1990s, this study assesses the different performance of R&D processes conducted under different governance structures, most notably projects that are fully internalised by the companies vis-àvis projects developed in collaboration with other firms. Moreover, this study compares the different specialisation and performance of large drug companies with respect to the NBFs. Results show that the established pharmaceutical companies have comparative advantages with respect to NBFs in drug development, while there is no advantage related to scale in drug discovery. Furthermore, NBFs undertake less risky project, which are more likely to fail at earlier clinical stages.Ashish AroraAlfonso GambardellaFabio Pammollif.pammolli@imtlucca.itMassimo Riccabonimassimo.riccaboni@imtlucca.it2011-06-30T14:24:14Z2011-08-31T14:40:39Zhttp://eprints.imtlucca.it/id/eprint/665This item is in the repository with the URL: http://eprints.imtlucca.it/id/eprint/6652011-06-30T14:24:14ZThe Nature and the Extent of Markets for TechnologyFabio Pammollif.pammolli@imtlucca.itAshish AroraAlfonso GambardellaMassimo Riccabonimassimo.riccaboni@imtlucca.it