IDEAS home Printed from https://ideas.repec.org/p/sru/ssewps/2013-16.html
   My bibliography  Save this paper

High growth firms, innovation and competition: the case of the US pharmaceutical industry

Author

Listed:
  • Mariana Mazzucato

    (SPRU, University of Sussex, UK)

  • Stuart Parris

    (Faculty of Economics, Open University, UK)

Abstract

Firms across sectors and regions are highly skewed in their ability to engage with innovation, and even more skewed in their ability to translate investments in innovation into higher growth. Recent attention has been placed on the importance of ‘high growth firms’ (HGF) for innovation policy. Our paper explores under what conditions HGF matter for translating R&D investments into economic growth and how this depends on firm-specific and industry-specific factors. We use quantile regression techniques to study the R&D-growth relationship in HGF compared to low growth firms. Unlike previous studies, we pay particular attention to whether this relationship depends on the particular period in the industry’s life-cycle. We focus on the US pharmaceutical (pharma) industry from 1963 to 2002 and find that the R&D-growth relationship is sensitive to the changing competitive environment over the industry’s history, which suggests that innovation policy must focus not only on firm attributes but also competitive structures.

Suggested Citation

  • Mariana Mazzucato & Stuart Parris, 2013. "High growth firms, innovation and competition: the case of the US pharmaceutical industry," SPRU Working Paper Series 2013-16, SPRU - Science Policy Research Unit, University of Sussex Business School.
    • Handle: RePEc:sru:ssewps:2013-16
    as

    Download full text from publisher

    File URL: http://www.sussex.ac.uk/spru/documents/2013-16-swps-mazzucato.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Artur-Emilian SIMION & Florentina Viorica GHEORGHE & Gheorghe ZAMAN, 2017. "Exporting high-growth enterprises, including gazelles, in Romania," Romanian Journal of Economics, Institute of National Economy, vol. 45(2(54)), pages 43-62, December.
    2. Šarlija, Nataša & Bilandžić, Ana, 2018. "Does Innovation Matter for SMEs' growth in Croatia?," 6th International OFEL Conference on Governance, Management and Entrepreneurship. New Business Models and Institutional Entrepreneurs: Leading Disruptive Change (Dubrovnik, 2018), in: 6th International OFEL Conference on Governance, Management and Entrepreneurship. New Business Models and Institutional Entrepreneurs: Leading Disrupt, pages 356-375, Governance Research and Development Centre (CIRU), Zagreb.

    More about this item

    Keywords

    R&D; Growth; Venture capitalist; quantile regression; pharmaceutical industry;
    All these keywords.

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sru:ssewps:2013-16. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: University of Sussex Business School Communications Team (email available below). General contact details of provider: https://edirc.repec.org/data/spessuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.