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Outsourcing Of Research And Development Activities: Evidence From U.S. Biopharmaceutical Firms

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  • Arup K. Sen

Abstract

This paper examines changes in outsourcing in biopharmaceutical firms over the past ten years using a survey of 86 firms. The data suggest that in spite of the rising expenses in research and development (R&D) and the trend toward external sourcing, a large segment of the firms still prefer to conduct discovery and research in-house. Despite a growing literature on the importance of R&D outsourcing in the biopharmaceutical industry, the data suggest that most firms have recently been reducing their dependence on external R&D partners. The results indicate that the biopharmaceutical firms are using a combination of domestic and foreign firms to outsource their R&D activities and there is no correlation between outsourcing and R&D intensity. The paper concludes with a brief discussion of the implications of the survey findings and the role outsourcing play for R&D activities in the biopharmaceutical industry.

Suggested Citation

  • Arup K. Sen, 2009. "Outsourcing Of Research And Development Activities: Evidence From U.S. Biopharmaceutical Firms," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 3(1), pages 73-82.
    • Handle: RePEc:ibf:gjbres:v:3:y:2009:i:1:p:73-82
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    References listed on IDEAS

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    Cited by:

    1. Tomasz Mroczkowski, 2013. "R&D Offshoring to Emerging Economies: Can Poland compete?," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 33.
    2. Arup K. Sen & Kushnood Haq, 2011. "Product Innovation By Small And Medium-Sized Firms Through Outsourcing And Collaboration," International Journal of Management and Marketing Research, The Institute for Business and Finance Research, vol. 4(1), pages 61-73.

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    JEL classification:

    • M16 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - International Business Administration

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