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The evolution of the pharmaceutical industry

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  • Franco Malerba
  • Luigi Orsenigo

Abstract

This article provides an overview of the main traits of the historical development of the pharmaceutical industry, using the lenses of the evolutionary approach to economic and industrial change. After a brief overview of the main evolutionary concepts which guide the subsequent discussion, our presentation identifies four main eras: from the formative stages (from the late 1800s to War World II) to the so-called Golden Age (the 1940s to the mid-1970s), the biotechnology revolution (the 1970s to the new millennium, approximately) and what we label the 'Winter of Discontent?' (the first decade of the new century). Within all these epochs, we discuss the main trends in technology, firms' strategies and structures, patterns of competition, demand, regulation and institutional developments. Section 6 concludes the article, briefly discussing some main implications for the present and future of the industry on the one hand and for the relevance of an evolutionary approach to the analysis of corporate and industrial change on the other.

Suggested Citation

  • Franco Malerba & Luigi Orsenigo, 2015. "The evolution of the pharmaceutical industry," Business History, Taylor & Francis Journals, vol. 57(5), pages 664-687, July.
    • Handle: RePEc:taf:bushst:v:57:y:2015:i:5:p:664-687
    DOI: 10.1080/00076791.2014.975119
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    1. Gambardella,Alfonso, 1995. "Science and Innovation," Cambridge Books, Cambridge University Press, number 9780521451185, January.
    2. Timothy F. Bresnahan & Shane Greenstein & Rebecca M. Henderson, 2011. "Schumpeterian Competition and Diseconomies of Scope: Illustrations from the Histories of Microsoft and IBM," NBER Chapters, in: The Rate and Direction of Inventive Activity Revisited, pages 203-271, National Bureau of Economic Research, Inc.
    3. Christopher Freeman, 2008. "Systems of Innovation," Books, Edward Elgar Publishing, number 12797.
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