Research in the pharmaceutical industry

Jürgen Drews

European Management Journal, 1989, vol. 7, issue 1, 23-30

Abstract: Research in the industrial context can either be driven by forces which are inherent in science and technology or by customer needs. In the first instance, research will generate a culture of the 'technically feasible', in the second case a 'demand culture' will emerge. Most pharmaceutical and chemical companies embrace both types of research. In some companies the technology-oriented research which is an instrument of corporate strategy is organized in the central research department, while research operating along established technological lines in order to satisfy market needs is incorporated into the divisions. To provide a suitable organizational environment for both types of research is a crucial task for the management of multi-divisional companies. The interaction between central and divisional or between technology-driven and market-driven research can only function if each part understands its role properly. Central research will bring new methods and concepts into the corporation. These concepts will either be discarded after proper analysis or substantiated and passed on to the divisions in the form of prototypical products or processes. The requirements for a successful transition of technology from central to divisional research as well as the organizational and technical conditions which have to be met in order to allow both types of research to thrive are discussed in some detail. The conclusions drawn from this analysis are meant to provide strategic assistance to pharmaceutical companies facing a multitude of technological and societal challenges.

Date: 1989
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