From Basic Research to Competitiveness: An Econometric Analysis of the Global Pharmaceutical Sector

Abstract

The pharmaceutical sector is a flagship of the economy in most developed countries and is one of the most research-intensive sectors of modern economies. The aim of this paper was to determine the mutual relationships between the research and development (R&D) resources, various indicators of scientific performance and the competitiveness of the sector. We carried out a cointegration analysis of a time series of R+D resources, the number of academic papers published, as well as patents and the competitiveness of this sector in various developed states. The econometric analysis of time series is built on panel cointegration models. Based on the combination of different comprehensive and coherent international databases and applying the latest methods of modern time series analysis, the paper proves that, in most developed countries, a direct, significant, causal, lagged relationship between the monetary resources allocated to R&D and the number of academic papers, as well as the number of patents can be observed. In most cases, a causal relationship can be demonstrated between the number of academic papers and patents, but vice versa, this fact is not provable. This study highlights the complexity of innovation systems in the pharmaceutical sector. The results prove only a weak connection between the number of patents and the number of publications. When evaluating the efficiency of the utilisation of resources allocated to pharmaceutical R+D, the effect of the time lag should be considered.

Innovation and Scientific Research as a Sustainable Development Goal in Spanish Public Universities

“…Other studies obtained the same conclusion in different countries such as Italy [24], France [25], Taiwan [26], the United Kingdom, Germany and Belgium [27] and the United States [28], or by studying specific fields, for example, Van Looy et al [29] in the biotechnology sector, Klitkou and Gulbrandsen [30] for life sciences, and Lakner et al [31] for the pharmaceutical sector.…”

The Influence of the Knowledge-Based Network Structure Hole on Enterprise Innovation Performance: The Threshold Effect of R&D Investment Intensity

“…An enterprise dynamically adjusts the allocation of R&D resources according to internal and external environments, and improves performance by changing the type of innovation according to the level of external marketization [37,38]. It is also vital that the interaction of innovation and technology with well-functioning institutions can accelerate economic development [39]; Lakner, et al [40] recommend that boosting the effect of the state is a necessary development of R&D activity even in branches dominated by large-scale enterprises. Vekic, et al [41] document that sustainable measures, particularly those of academic start-up and spin-off companies, have a very important role in sustainable economic growth (local, national and regional), and are a significant driver of innovation.…”

A Generalized Double Diamond Approach to the Global Competitiveness of the Pharmaceutical Industry: A Comparison between South Korea and Japan

“…Furthermore, outsourcing elements of the pharmaceutical supply chain, adopting disruptive business models, and actively engaging in mergers and acquisitions are boosting the ability of firms to compete for both domestically and internationally, given the larger propensity they then have to work on innovative projects (Ku, 2015;Mishra and Jaiswal, 2017). In terms of developing clinical capabilities and the overall pharmaceutical success of a country, authors found it to be vital to address R&D financing resources, R&D intensity, and patent quality (Kuwashima, 1999;Lakner et al, 2019;Gambardella, et al, 2020;Chung et al,2019;Chen and Chang, 2010), and Human Capital (Shabaninejad, Mehralian, Rashdian, Baratimarnani, and Rasekh, 2014). Lastly, some experts argued for the economic and operational benefit that firms gain when bringing products to new markets, conducting investments abroad, and internationalizing their patents (Laurens et al, 2019;Pradhan, 2006;Bergman, 2006).…”