Separating research from development: Evidence from the pharmaceutical industry

Vittorio Chiesa

European Management Journal, 1996, vol. 14, issue 6, 638-647

Abstract: From an organisational point of view, corporate research and development (R&D) has always been viewed as one function. That view, however, has undergone some changes in the last few years, and many major corporations have changed their R&D organisation or re-thought their overall structure on the basis of their technical competencies. With the example of the pharmaceutical industry, in which R&D has a particularly strong role to play, Vittorio Chiesa reports on a survey of nine major pharmaceutical firms which have recently instigated such changes. Among the changes are a separation of the 'research' and 'development' activities organisationally and sometimes physically. The author puts forward explanations for this trend and weighs the advantages and disadvantages.

Date: 1996
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