Influences on R&amp;D growth among Japanese pharmaceutical firms, 1975–1990

Mitchell, Will; Roehl, Thomas; Slattery, Romald J.

doi:10.1016/1047-8310(95)90004-7

Cited by 13 publications

(8 citation statements)

References 25 publications

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“…One study showed that the Japanese domestic environment for pharmaceuticals changed radically from 1975 to 1995, which degraded the innovative capability of the companies (19). Another study emphasized the importance of understanding the dynamics of R&D investment strategies between 1975 and 1990 (20). Finally, one study measured and observed the deterioration of R&D productivity of Japanese pharmaceutical companies from 1983 to 1992 using a quantitative method (21).…”

Section: Discussionmentioning

confidence: 99%

A lesson from Japan: Research and development efficiency is a key element of pharmaceutical industry consolidation process

Shimura

Masuda

Kimura

2014

DD&T

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Scholarly attention to pharmaceutical companies' ability to sustain research and development (R&D) productivity has increased as they increasingly handle business challenges. Furthermore, the deterioration of R&D productivity has long been considered a major cause of mergers and acquisitions (M&As). This study attempts to investigate quantitatively the possible causes of the deterioration and the relationship between the deterioration and M&As by examining the Japanese pharmaceutical industry. Japan from 1980 to 1997 is an ideal case because of the availability of official data, but more importantly the significant changes in its business environment at the time. Using the Malmquist Index and data envelopment analysis, we measured the deterioration of R&D productivity from 1980 to 1997 based on a sample of 15 Japanese companies. Two lessons can be learned from Japan's case. First, to sustain R&D productivity over the long term, companies should use licensing activities and focus on the dominant therapeutic franchises. Second, if a company fails significantly to catch up with the benchmark, it is likely to pursue an M&A or seek an alternative way to improve R&D productivity. These findings appear similar to the current situation of the global pharmaceutical industry, although Japan pursued more licensing activities than M&A to improve R&D productivity.

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Section: Discussionmentioning

confidence: 99%

A lesson from Japan: Research and development efficiency is a key element of pharmaceutical industry consolidation process

Shimura

Masuda

Kimura

2014

DD&T

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“…A relevant article was the one that examined factors influencing an R&D expenditure variable or its proxies in the framework of an empirical study. Common R&D expenditure proxies from the literature included: growth in firm-level absolute R&D expenditure variable ( Mitchell et al, 1995 ), R&D expenditures ( Malmberg, 2008 ), change in R&D intensity (R&D divided by Sales) ( Mitchell et al, 1995 ; Giaccotto et al, 2005 ; Siddharthan, 1992 ; Grabowski & Vernon, 2000 ; Mahlich & Roediger-Schluga, 2006 ), other ratios such as R&D divided by Capital Assets ( Trushin, 2011 ), and the number of new drugs in development to target an illness.…”

Section: Resultsmentioning

confidence: 99%

“…Second, some determinants yielded inconsistent correlation outcomes across studies (e.g., sales and firm size), whereas cash flow and sales were consistently positive across different countries. Inconsistency in outcomes may arise owing to different reasons: cross-sectional differences across industries, conflicting outputs in the pharmaceutical industry, and research environment differences across different years of study ( Mitchell et al, 1995 ). Specific characteristics of regression analyses inherent to each of the examined studies might have played a role.…”

Section: Discussionmentioning

confidence: 99%

R&D Implementation in a Department of Laboratory Medicine and Pathology: A Systematic Review Based on Pharmaceutical Companies

Feulefack¹,

Sergi²

2015

GJHS

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A systematic literature review on pharmaceutical companies may be a tool for guiding some procedures of R&D implementation in a department of Laboratory Medicine and Pathology. The use of pharmaceutical companies for this specific analysis arises from less variability of standards than healthcare facilities. In this qualitative and quantitative analysis, we focused on three useful areas of implementation, including R&D productivity, commercialization strategies, and expenditures determinants of pharmaceutical companies. Studies and reports of online databases from 1965 to 2014 were reviewed according to specific search terms. Initially, 218 articles and reports were found and examined, but only 91 were considered appropriate and used for further analysis. We identified some suggested implementation strategies relevant for marketing to enhance companies’ own R&D strategies; such as reliability of companies on “sourcing-in” R&D facilities and “think-tank” events. Regardless of the study and of the country, cash flow and profitability always positively influenced R&D expenditure, while sales and firm size did not. We consider that handling R&D determinants should require caution. It seems critical that implementation of R&D systems is directly related with productivity, if it reflects dual embodiment of efficiency and effectiveness. Scrutinizing the determinants of R&D expenditures emphasizes significant factors that are worth to highlight when planning an R&D investment strategy. Although there is no receipt fitting every situation, we think that health care plan makers may find relevant data in this systematic review in creating an initial implementation framework.

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“…In addition, competitive systems are characterised by a clear distinction between innovative market (with higher prices) and off-patent market (where competition drives prices down). Conversely, those countries were prices of drugs are more regulated show a significant stability of prices over time and a lower variance of prices for different products based on the same active principle [24]. In markets that rely on price regulation and price-cuts as a way of containing public expenditure, launching of copies and horizontal differentiation with imitative brand products well before patent expiration may reduce the extent of competition.…”

Section: The Regulatory Environmentmentioning

confidence: 99%

Public administration and R&D localisation by pharmaceutical and biotech companies: A theoretical framework and the Italian case-study

Jommi

Paruzzolo

2007

Health Policy

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Influences on R&D growth among Japanese pharmaceutical firms, 1975–1990

Cited by 13 publications

References 25 publications

A lesson from Japan: Research and development efficiency is a key element of pharmaceutical industry consolidation process

A lesson from Japan: Research and development efficiency is a key element of pharmaceutical industry consolidation process

R&D Implementation in a Department of Laboratory Medicine and Pathology: A Systematic Review Based on Pharmaceutical Companies

Public administration and R&D localisation by pharmaceutical and biotech companies: A theoretical framework and the Italian case-study

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