Cluster versus Firm-specific Factors in the Development of Dynamic Capabilities in the Pharmaceutical Industry in Ireland: A Study of Responses to Changes in Environmental Protection Regulations

Rachel Hilliard and David Jacobson

Regional Studies, 2011, vol. 45, issue 10, 1319-1328

Abstract: Hilliard R. and Jacobson D. Cluster versus firm specific-factors in the development of dynamic capabilities in the pharmaceutical industry in Ireland: a study of responses to changes in environmental protection regulations, Regional Studies . This paper uses the evolutionary economic theory of the firm to examine the response of pharmaceutical manufacturing firms to changes in environmental regulations. Quantitative indicators of firms' learning and problem-solving are developed using data reported to the Irish Environmental Protection Agency (EPA). These are used to look at differences in capability between firms that are part of a pharmaceutical agglomeration and firms that are stand-alone. Analysis shows that spatial proximity may be a factor in firms' ability to implement both cleaner technology and the mandated managerial processes, but that the strength of problem-solving routines is also associated with firm-specific capabilities.

Date: 2011
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DOI: 10.1080/00343404.2010.505916

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