Worlds apart? A comparison of the new product development strategies of biopharmaceutical firms in Europe and the USA. Industry and Innovation.

Globally the biopharmaceutical industry is characterized by strong competition, research-intensive and protracted new product development (NPD) processes, intensive regulation and extensive alliance activity. Policy regimes and operating environments differ markedly, however. Here we examine how the...

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Main Authors: Tianjiao Xia, Stephen Roper
Format: Default Article
Published: 2009
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USA
Online Access:https://hdl.handle.net/2134/14653
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spelling rr-article-94975042009-01-01T00:00:00Z Worlds apart? A comparison of the new product development strategies of biopharmaceutical firms in Europe and the USA. Industry and Innovation. Tianjiao Xia (1250577) Stephen Roper (334067) Other commerce, management, tourism and services not elsewhere classified Biopharmaceutical USA Europe Comparative analysis Business and Management not elsewhere classified Globally the biopharmaceutical industry is characterized by strong competition, research-intensive and protracted new product development (NPD) processes, intensive regulation and extensive alliance activity. Policy regimes and operating environments differ markedly, however. Here we examine how these differences impact on the NPD strategies of biopharmaceutical firms in the USA and three major EU economies (the UK, France and Germany). Our analysis suggests four key differences between firms' NPD strategies in the two areas. First, while levels of R&D intensity and continuity are broadly similar in the two areas, US firms have notably stronger patent profiles, and are significantly more active in technology licensing than their European counterparts. Second, product development cycles are significantly longer in the USA than among our European respondents. Third, the nature of the product development pipeline is very different in the USA and the major European economies covered by our study: US firms conduct early stage development of more compounds than European firms but take only a similar number to market. Fourth, we see broadly similar levels of alliance activity in our US and European respondents at both the early and late stages of the NPD process. These results suggest a greater substitution of “market” for “hierarchy” in US firms' NPD strategies, reflecting differences in the availability and structure of government support in the USA and Europe. 2009-01-01T00:00:00Z Text Journal contribution 2134/14653 https://figshare.com/articles/journal_contribution/Worlds_apart_A_comparison_of_the_new_product_development_strategies_of_biopharmaceutical_firms_in_Europe_and_the_USA_Industry_and_Innovation_/9497504 CC BY-NC-ND 4.0
institution Loughborough University
collection Figshare
topic Other commerce, management, tourism and services not elsewhere classified
Biopharmaceutical
USA
Europe
Comparative analysis
Business and Management not elsewhere classified
spellingShingle Other commerce, management, tourism and services not elsewhere classified
Biopharmaceutical
USA
Europe
Comparative analysis
Business and Management not elsewhere classified
Tianjiao Xia
Stephen Roper
Worlds apart? A comparison of the new product development strategies of biopharmaceutical firms in Europe and the USA. Industry and Innovation.
description Globally the biopharmaceutical industry is characterized by strong competition, research-intensive and protracted new product development (NPD) processes, intensive regulation and extensive alliance activity. Policy regimes and operating environments differ markedly, however. Here we examine how these differences impact on the NPD strategies of biopharmaceutical firms in the USA and three major EU economies (the UK, France and Germany). Our analysis suggests four key differences between firms' NPD strategies in the two areas. First, while levels of R&D intensity and continuity are broadly similar in the two areas, US firms have notably stronger patent profiles, and are significantly more active in technology licensing than their European counterparts. Second, product development cycles are significantly longer in the USA than among our European respondents. Third, the nature of the product development pipeline is very different in the USA and the major European economies covered by our study: US firms conduct early stage development of more compounds than European firms but take only a similar number to market. Fourth, we see broadly similar levels of alliance activity in our US and European respondents at both the early and late stages of the NPD process. These results suggest a greater substitution of “market” for “hierarchy” in US firms' NPD strategies, reflecting differences in the availability and structure of government support in the USA and Europe.
format Default
Article
author Tianjiao Xia
Stephen Roper
author_facet Tianjiao Xia
Stephen Roper
author_sort Tianjiao Xia (1250577)
title Worlds apart? A comparison of the new product development strategies of biopharmaceutical firms in Europe and the USA. Industry and Innovation.
title_short Worlds apart? A comparison of the new product development strategies of biopharmaceutical firms in Europe and the USA. Industry and Innovation.
title_full Worlds apart? A comparison of the new product development strategies of biopharmaceutical firms in Europe and the USA. Industry and Innovation.
title_fullStr Worlds apart? A comparison of the new product development strategies of biopharmaceutical firms in Europe and the USA. Industry and Innovation.
title_full_unstemmed Worlds apart? A comparison of the new product development strategies of biopharmaceutical firms in Europe and the USA. Industry and Innovation.
title_sort worlds apart? a comparison of the new product development strategies of biopharmaceutical firms in europe and the usa. industry and innovation.
publishDate 2009
url https://hdl.handle.net/2134/14653
_version_ 1794842563707928576