Authors: Philip Cooke
Addresses: Centre for Advanced Studies, Cardiff University, 44-45 Park Place, Cardiff, CF10 3BB, UK
Abstract: The pharmaceutical industry remains powerful due to its firm scale and global reach. However, analysis of the source of biotechnology-derived products in healthcare, valued at $70 billion worldwide by 2000, reveals an almost complete dependence, in three key markets of the USA, UK and Germany, on products developed by entrepreneurial biotechnology firms. These tend to operate in knowledge-driven clusters centred upon universities, research hospitals and research institutes, supported in major ways by public funding. This, and the growing public perception of possible problems with biotechnologies will increasingly bring ||big pharma|| into uncertain relations with governmental bodies, something that has been pronounced in the UK of late. Whether large pharmaceutical firms will retain their traditional powers of action in relation to governments and markets under these circumstances seems unlikely. However, such is their control over marketing and distribution as well as funding of entrepreneurial firms within or outside biotechnology clusters, that any serious challenge to their hegemony is difficult to envisage at present.
Keywords: biotechnology; clusters; pharmaceuticals; drugs; research; commercialisation.
International Journal of Technology Management, 2003 Vol.25 No.1/2, pp.65-80
Published online: 11 Jul 2003 *Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article