A research note on market creation in the pharmaceutical industry

Jenny Darroch and Morgan P. Miles

Journal of Business Research, 2011, vol. 64, issue 7, 723-727

Abstract: When a firm launches a market-creating innovation, it launches a new product for which there are no close product substitutes. Thus, the new product causes a shift in the existing product-market structure of an industry. This paper reports on the findings of the analysis of 51 large pharmaceutical firms and their market-creating activities. The study suggests that market-creating firms have capabilities in both R&D and marketing. Furthermore, market-creating firms enjoy stronger efficiencies, manage costs better and make more profitable use of their assets.

Keywords: Market; creation; Innovation; Marketing; capabilities; R&; D; capabilities; Pharmaceutical; industry (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:64:y:2011:i:7:p:723-727

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