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R&D portfolios and pharmaceutical licensing

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  • Nishimura, Junichi
  • Okada, Yosuke

Abstract

We examine how R&D portfolios of drug pipelines affect pharmaceutical licensing, controlling firm size, diversity, and competition. The data collected comprises 434 license-ins and 329 license-outs closed by 54 Japanese pharmaceutical companies between 1997 and 2007. We pay special attention to stage-specific licensing by dividing the innovation process into early and late stages. Joint estimates of license-in and license-out using seemingly unrelated regressions (SUR) reveal that drug pipelines significantly affect stage-specific licensing, inducing portfolio effect that lead to smoothing drug pipelines across early and late stages.

Suggested Citation

  • Nishimura, Junichi & Okada, Yosuke, 2014. "R&D portfolios and pharmaceutical licensing," Research Policy, Elsevier, vol. 43(7), pages 1250-1263.
    • Handle: RePEc:eee:respol:v:43:y:2014:i:7:p:1250-1263
    DOI: 10.1016/j.respol.2014.03.008
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    2. Banerjee, Tannista & Siebert, Ralph, 2017. "Dynamic impact of uncertainty on R&D cooperation formation and research performance: Evidence from the bio-pharmaceutical industry," Research Policy, Elsevier, vol. 46(7), pages 1255-1271.
    3. Dushnitsky, Gary & Klueter, Thomas, 2017. "Which industries are served by online marketplaces for technology?," Research Policy, Elsevier, vol. 46(3), pages 651-666.
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    5. Klueter, Thomas & Monteiro, L. Felipe & Dunlap, Denise R., 2017. "Standard vs. partnership-embedded licensing: Attention and the relationship between licensing and product innovations," Research Policy, Elsevier, vol. 46(9), pages 1629-1643.
    6. Solon Moreira & Thomas Maximilian Klueter & Stefano Tasselli, 2020. "Competition, Technology Licensing-in, and Innovation," Organization Science, INFORMS, vol. 31(4), pages 1012-1036, July.
    7. Purdy, Lauren & Eslami, Hadi & Eshghi, Kamran & Rod, Michel, 2023. "Technology sourcing and the dark side of open innovation: Evidence from the biopharmaceutical sector," Technovation, Elsevier, vol. 119(C).
    8. Ming Li & Xiangdong Chen & Gupeng Zhang, 2017. "How does firm size affect technology licensing? Empirical evidence from China," Scientometrics, Springer;Akadémiai Kiadó, vol. 112(3), pages 1249-1269, September.
    9. Yu, Xinning & Lan, Yanfei & Zhao, Ruiqing, 2021. "Strategic green technology innovation in a two-stage alliance: Vertical collaboration or co-development?," Omega, Elsevier, vol. 98(C).
    10. Hanee Ryu & Hyejae Jung, 2021. "Impact of public R&D as market matures: Evidence from solar PV industry," Energy & Environment, , vol. 32(8), pages 1543-1558, December.
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    More about this item

    Keywords

    R&D portfolios; Licensing; Pharmaceutical industry; Drug pipelines;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics

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