US market entry by Spanish pharmaceutical firms

Marco S. Giarratana and Fabrizio Cesaroni
Authors registered in the RePEc Author Service: Ester Martínez-Ros

DEE - Working Papers. Business Economics. WB from Universidad Carlos III de Madrid. Departamento de Economía de la Empresa

Abstract: This work explores the factors that spur firms’ propensity to enter in international markets. Among the whole population of Spanish firms active in the pharmaceutical sector (over the period 1995-2004), we identify those firms that have entered the US market by assessing whether they have filed at least a trademark in the US Patents and Trademarks Office. By means of a hazard model, we empirically estimate which firm’s characteristics affect the probability of entry in the US market in a given year. Results show that technological capabilities (breadth and depth of firms’ patent base), and the firm’s cost structure explain the entry in the US market with a branded product. Moreover, our evidence shows that entry strategies based on differentiation advantage (technological diversification) and strategies based on cost advantage (scale economies) are exclusive and do not mix well each other

Keywords: Foreign; market; entry; Internationalization; strategies; Firm-Specific; advantages; Competitive; advantage; Innovation; and; R&D; Patents; Trademarks (search for similar items in EconPapers)
JEL-codes: F23 (search for similar items in EconPapers)
Date: 2010-02
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Persistent link: https://EconPapers.repec.org/RePEc:cte:wbrepe:wb101103

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