Magazzini, Laura and Pammolli, Fabio and Riccaboni, Massimo Learning from failures or failing to learn? Lessons from pharmaceutical R&D. European Management Review, 9 (1). pp. 45-58. ISSN 1740-4754 (2012)
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Abstract
Innovation is a trial and error process in which both successes and failures contribute to knowledge creation and destruction. In this paper we test theoretical predictions about the role of failures in new product development on private and public knowledge and interfirm knowledge transfer. We analyse the outcomes of world-wide R&D projects in the pharmaceutical industry, and proxy knowledge flows with forward citations received by patents associated with each project. We find that patents covering successfully completed projects (i.e., leading to drug launch on the market) receive more citations than those associated to failed (terminated) projects, which in turn are cited more often than patents lacking clinical or preclinical information. Failures by specialized firms are cited more frequently than the ones of generalist companies. We therefore offer evidence of the value of failures as research inputs in (pharmaceutical) innovation.
| Item Type: | Article |
|---|---|
| Identification Number: | https://doi.org/10.1111/j.1740-4762.2012.01027.x |
| Uncontrolled Keywords: | R&D competition; product development; vicarious learning; patent citation; pharmaceutical industry |
| Subjects: | H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management R Medicine > RS Pharmacy and materia medica |
| Research Area: | Economics and Institutional Change |
| Depositing User: | Leonardo Mezzina |
| Date Deposited: | 02 Mar 2012 11:32 |
| Last Modified: | 19 Apr 2012 09:52 |
| URI: | http://eprints.imtlucca.it/id/eprint/1201 |
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- Learning from failures or failing to learn? Lessons from pharmaceutical R&D. (deposited 02 Mar 2012 11:32) [Currently Displayed]
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