Pharmaceutical Research in Wilhelmine Germany: The Case of E. Merck

31 Pages Posted: 4 Mar 2008

See all articles by Carsten Burhop

Carsten Burhop

Max Planck Institute for Research on Collective Goods

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Date Written: February 2008

Abstract

In this paper, we describe the emergence and evolution of pharmaceutical research at the German company E. Merck during the late 19th and early 20th century. Revolutionary changes in the scientific knowledge base, especially the rise of bacteriological research, and the market entry of dyestuff producers into pharmaceuticals made the re-organization of pharmaceutical research during the 1890s a necessary corporate strategy. Consequently, Merck restructured its in-house research between 1895 and 1898. Moreover, the firm deepened its co-operation with universities and other outside inventors. Jointly and severally, the firm depended on outside inventors for the generation of new products, whereas in-house scientists improved the productive efficiency. Moreover, we show that a significant number of new products were launched between the late 1890s and 1905. During the following years, however, resource constraints restricted Merck's innovative capacity.

Keywords: business history, pharmaceutical research, case study

JEL Classification: N83, O32

Suggested Citation

Burhop, Carsten, Pharmaceutical Research in Wilhelmine Germany: The Case of E. Merck (February 2008). MPI Collective Goods Preprint, No. 2008/3, Available at SSRN: https://ssrn.com/abstract=1101434 or http://dx.doi.org/10.2139/ssrn.1101434

Carsten Burhop (Contact Author)

Max Planck Institute for Research on Collective Goods ( email )

Kurt-Schumacher-Str. 10
D-53113 Bonn, 53113
Germany

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