Technological diversity and future product diversity in the drug industry

Arbeitspapier

This paper deals with the topic of related R&D and innovation strategies of large firms. We ask what determines the diversity of a firm's product portfolio. More specifically, we try to explain large firms' expansion into new product markets driven by the characteristics of their technological knowledge. Empirically, we study firms in the pharmaceutical and biotech industries, using relevant data on product development and technological knowledge. We find a positive relationship between the diversity of a firm's future product portfolio and the diversity of its stock of technological knowledge. This relationship becomes weaker when the breadth of technological knowledge increases.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Jena Economic Research Papers ; No. 2009,031

Classification and Topics

• Classification: Wirtschaft ; Management of Technological Innovation and R&D ; Firm Performance: Size, Diversification, and Scope ; Chemicals; Rubber; Drugs; Biotechnology; Plastics
• Subject: Product diversity ; technological diversity ; product relatedness ; technological relatedness ; coherence ; Diversifikation ; Produktpolitik ; Innovationsmanagement ; Technologie ; Pharmazeutische Industrie ; Biotechnische Industrie ; Großunternehmen ; Europa

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Cantner, Uwe ; Plotnikova, Tatiana
• Event: Veröffentlichung
• (who): Friedrich Schiller University Jena and Max Planck Institute of Economics
• (where): Jena
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/31772
• Last update: 10.03.2025, 11:42 AM CET