Internal Basic Research, External Basic Research and the Technological Performance of Pharmaceutical Firms

Katholieke Universiteit Department of Managerial Economics, Strategy and Innovations Working Paper No. 1003

32 Pages Posted: 5 Jun 2010 Last revised: 10 May 2013

See all articles by Bart Leten

Bart Leten

KU Leuven - Faculty of Business and Economics (FEB)

Stijn Kelchtermans

KU Leuven - Department of Management, Strategy & Innovation; KU Leuven

René Belderbos

University of Leuven (KUL) - Department of Managerial Economics, Strategy and Innovation; Maastricht University - Department of Organization & Strategy

Date Written: June 1, 2010

Abstract

We evaluate the impact of basic research on pharmaceutical firms’ technological performance, distinguishing between internal basic research and the exploitation of external basic research findings. We find that firms increase their performance by engaging more in internal basic research, in particular if basic research is conducted in collaboration with university scientists. The exploitation of external basic research improves performance, while the magnitude increases with firms’ involvement in internal basic research. Hence, internal basic research and the exploitation of external basic research are complements, suggesting that internal basic research provides firms with the skills to exploit external basic research more effectively.

Keywords: Basic Research, Industrial Innovation, Pharmaceutical Industry

Suggested Citation

Leten, Bart and Kelchtermans, Stijn and Belderbos, Rene, Internal Basic Research, External Basic Research and the Technological Performance of Pharmaceutical Firms (June 1, 2010). Katholieke Universiteit Department of Managerial Economics, Strategy and Innovations Working Paper No. 1003, Available at SSRN: https://ssrn.com/abstract=1620372 or http://dx.doi.org/10.2139/ssrn.1620372

Bart Leten (Contact Author)

KU Leuven - Faculty of Business and Economics (FEB) ( email )

Naamsestraat 69
Leuven, B-3000
Belgium

Stijn Kelchtermans

KU Leuven - Department of Management, Strategy & Innovation ( email )

Warmoesberg 26
Brussels, 1000
Belgium

HOME PAGE: http://https://feb.kuleuven.be/Stijn.Kelchtermans/

KU Leuven ( email )

Naamsestraat 69
Leuven, B-3000
Belgium

HOME PAGE: http://feb.kuleuven.be/eng/fetew/medewerker/userpage.aspx?PID=759

Rene Belderbos

University of Leuven (KUL) - Department of Managerial Economics, Strategy and Innovation ( email )

Naamsestraat 69
Leuven, B-3000
Belgium
+32 16 32 6912 (Phone)
+32 16 32 6732 (Fax)

Maastricht University - Department of Organization & Strategy ( email )

P.O. Box 616
Maastricht, 6200 MD
Netherlands

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