The R&D Value Chain and Product Commercialization in the Pharmaceutical Industry
The conversion of promising ideas into commercialized products is a central feature of technological progress and economic growth. However, turning discoveries into marketable products or technologies is a major challenge. The objective of the proposed research project is to analyze how access to different pools of scientific and technological knowledge through different organizational structures during the drug development process, affect (1) the speed at which ideas are turned into products and (2) the technological value and novelty of these products. We do this by mapping the whole drug development process, i.e. the R&D Value Chain. This requires identifying a complex set of elements: the different sources of scientific and technological knowledge, their recombination, the different actors active throughout the development process, the different interactions between those actors, and the inventor mobility across the various development stages and across organizations. The project draws upon a newly assembled dataset where we can carefully match patent and scientific publication data to actual product market-outcomes. Most prior studies measure the impact and value of an invention by using patent based measures due to a lack of data on the actual commercialization process. Moreover, the project characterizes the variety of actors and organizational structures active in the R&D value chain and quantifies their effects on the speed and quality of commercialization efforts.