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• W274247790 abstract "We examine the relationship between firm size and research productivity in the Japanese top ten pharmaceutical firms for the years 1981-1994. By using the number of successful patents as research performance measure, we find significant returns to scope in drug discovery research. We also find nearly constant returns to scale at the individual therapeutic level. These findings suggest that Japanese pharmaceutical firms are relatively small in terms of research scope, regardless of firm size per se. The Japanese firms may be able to enlarge the scope of research without suffering from marginal productivity decline at the firm level. Concerning knowledge spillovers, we find positive correlation between domestic competitors’ research spending and individual firm’s patenting. But we detect negative correlation between research expenditures of large western pharmaceutical firms and the Japanese firms’ patenting. This suggests that appropriation mechanism of patent may be very effective in drug discovery research, and may predominate over probable knowledge spillovers among pharmaceutical firms especially in globally patented drug discovery research. JEL classification: L65, O31, O30 Correspondence: Yosuke Okada Graduate School of Economics Hitotsubashi University Naka, Kunitachi, Tokyo, 186-8601, Japan E-mail: yookada@econ.hit-u.ac.jp * We are grateful to helpful comments from Akira Goto, Sadao Nagaoka, Takanobu Nakajima, Hiroyuki Odagiri, Kojiro Sakurai, Yoshindo Takahashi, Mitsuo Yashiro and other seminar participants at Hitotsubashi University, Kyushu University, Development Bank of Japan, the Institute of Developing Economies, and the Office of Pharmaceutical Industry Research. We would like to thank to Hiroyuki Hirai for superb research assistance. A lot of pharmaceutical researchers giving us beneficial opportunities of field interviews are greatly acknowledged. Financial support was provided by the Ministry of Education, Culture, Sports, Science and Technology for the 21st Century COE Program (Normative Evaluation and Social Choice of Contemporary Economic Systems, Hitotsubashi University) and the Japan Pharmaceutical Manufacturers Association (JPMA). The conclusions and opinions expressed herein are our own, and all errors and omissions remain our sole responsibility." @default.
• W274247790 created "2016-06-24" @default.
• W274247790 creator A5055962243 @default.
• W274247790 creator A5068967174 @default.
• W274247790 date "2004-02-24" @default.
• W274247790 modified "2023-09-23" @default.
• W274247790 title "Research Productivity in the Japanese Pharmaceutical Industry: Economies of Scale, Economies of Scope and Spillovers" @default.
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