• About
  • Contact
  • The blogger

A STABLE MATCH

A STABLE MATCH

Tag Archives: Pharmaceutical Industry

The Organization of Innovation: Property Rights and the Outsourcing Decision

04 Friday Dec 2020

Posted by tjungbau in Academic Research, Innovation

≈ Leave a comment

Tags

Outsourcing, Pharmaceutical Industry, R&D, Vertical Integration

Why do firms outsource research and development for some products while they opt to conduct R&D in-house for similar ones? In our new paper, Sean Nicholson, June Pan, Michael Waldman and I argue that companies want to protect their existing product portfolio. If a firm already successfully operates in a given product category, it is more reluctant to relinquish control of the research and development of new products in order to limit cannibalization of their existing successful products.

We build a novel theoretical model and show that a firm is more likely to conduct R&D for a new product in-house if a.) the company already sells a product in the same product category, b.) the longer the patent on the existing product, and c.) the higher the market share of the existing product are. Data from the pharmaceutical industry strongly supports our findings. We control for various measures of competition and patent existence to exclude simple category specific expertise as an explanation.

Recent Posts

  • Branding Vertical Product Line Extensions
  • The Organization of Innovation: Property Rights and the Outsourcing Decision
  • Self-reported actions, signaling, and auditing
  • It’s not about flattening the curve. Let’s get rid of it!
  • Why Audi is slimming down

Recent Comments

tjungbau on The Trump effect and European…
napagi on Democracy or not?
John on The Trump effect and European…
Efficiency vs. distr… on Applying to multiple specialti…

Archives

  • January 2021
  • December 2020
  • June 2020
  • March 2020
  • November 2019
  • November 2018
  • August 2018
  • July 2018
  • April 2018
  • December 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • August 2016
  • June 2016
  • April 2016
  • March 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015

Categories

  • Academic Organizations
  • Academic Research
  • Antitrust
  • Auction
  • Austria
  • Cartel
  • Corporate Social Responsibility
  • Democracy
  • Economic Growth
  • Economics Laureates
  • Education
  • Electric Vehicles
  • Health
  • Inequality
  • Innovation
  • MBA
  • National Resident Matching Program
  • Oil
  • Politics
  • Probability
  • Self-Driving Cars
  • Signaling
  • Social Dilemma
  • Statistics
  • Strategy
  • Terrorism
  • UBER
  • Voting

Meta

  • Register
  • Log in
  • Entries feed
  • Comments feed
  • WordPress.com

Recent Posts

  • Branding Vertical Product Line Extensions
  • The Organization of Innovation: Property Rights and the Outsourcing Decision
  • Self-reported actions, signaling, and auditing
  • It’s not about flattening the curve. Let’s get rid of it!
  • Why Audi is slimming down

Recent Comments

tjungbau on The Trump effect and European…
napagi on Democracy or not?
John on The Trump effect and European…
Efficiency vs. distr… on Applying to multiple specialti…

Archives

  • January 2021
  • December 2020
  • June 2020
  • March 2020
  • November 2019
  • November 2018
  • August 2018
  • July 2018
  • April 2018
  • December 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • August 2016
  • June 2016
  • April 2016
  • March 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015

Categories

  • Academic Organizations
  • Academic Research
  • Antitrust
  • Auction
  • Austria
  • Cartel
  • Corporate Social Responsibility
  • Democracy
  • Economic Growth
  • Economics Laureates
  • Education
  • Electric Vehicles
  • Health
  • Inequality
  • Innovation
  • MBA
  • National Resident Matching Program
  • Oil
  • Politics
  • Probability
  • Self-Driving Cars
  • Signaling
  • Social Dilemma
  • Statistics
  • Strategy
  • Terrorism
  • UBER
  • Voting

Meta

  • Register
  • Log in
  • Entries feed
  • Comments feed
  • WordPress.com

Blog at WordPress.com.

Cancel