Biopharmaceutical R&D outsourcing: Short-term ...
Document type :
Compte-rendu et recension critique d'ouvrage
Title :
Biopharmaceutical R&D outsourcing: Short-term gain for long-term pain?
Author(s) :
Scannell, Jack [Auteur]
Science, Technology and Innovation Studies Subject Group [Edinburgh]
Versaevel, Bruno [Auteur]
EMLyon Business School [EM]
Billette De Villemeur, Etienne [Auteur]
Lille économie management - UMR 9221 [LEM]
Science, Technology and Innovation Studies Subject Group [Edinburgh]
Versaevel, Bruno [Auteur]
EMLyon Business School [EM]
Billette De Villemeur, Etienne [Auteur]

Lille économie management - UMR 9221 [LEM]
Journal title :
Drug discovery today
Pages :
103333
Publisher :
Elsevier
Publication date :
2022-11
ISSN :
1359-6446
English keyword(s) :
Research
Development
Biotechnology
Pharmaceuticals
Externalities
Outsourcing
Development
Biotechnology
Pharmaceuticals
Externalities
Outsourcing
HAL domain(s) :
Sciences de l'Homme et Société/Economies et finances
English abstract : [en]
Research and development (R&D) outsourcing offers some obvious productivity benefits (e.g., access to new technology, variabilised costs, risk sharing, etc.). However, recent work in economics points to a productivity ...
Show more >Research and development (R&D) outsourcing offers some obvious productivity benefits (e.g., access to new technology, variabilised costs, risk sharing, etc.). However, recent work in economics points to a productivity headwind at the level of the innovation ecosystem. The market for technologies with economies of scope and knowledge spillovers (those with the biggest impact on industry economics and social welfare) has structural features that allow customers to capture a disproportionate share of economic value and transfer a disproportionate share of economic risk to technology providers, even though the providers aim to maximise profit. This reduces the incentives to invest in new ventures that specialise in the most promising early-stage projects. Therefore, near-term gains from R&D outsourcing can be offset by slower innovation in the long run.Show less >
Show more >Research and development (R&D) outsourcing offers some obvious productivity benefits (e.g., access to new technology, variabilised costs, risk sharing, etc.). However, recent work in economics points to a productivity headwind at the level of the innovation ecosystem. The market for technologies with economies of scope and knowledge spillovers (those with the biggest impact on industry economics and social welfare) has structural features that allow customers to capture a disproportionate share of economic value and transfer a disproportionate share of economic risk to technology providers, even though the providers aim to maximise profit. This reduces the incentives to invest in new ventures that specialise in the most promising early-stage projects. Therefore, near-term gains from R&D outsourcing can be offset by slower innovation in the long run.Show less >
Language :
Anglais
Popular science :
Non
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