Differentiation of innovation strategies based on pharmaceutical licensing agreements: Insight from Korean pharmaceutical firms |
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Authors: | Chie Hoon Song Jens Leker |
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Institution: | 1. Research Center for Epigenome Regulation, School of Pharmacy, Sungkyunkwan University, Suwon, South Korea;2. Institute of Business Administration at the Department of Chemistry and Pharmacy, University of Münster, Münster, Germany |
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Abstract: | The paper aims to show how licensing behaviour can be used to differentiate distinct innovation strategies. Information on in-licensing and out-licensing agreements is used to guide the development of a framework that details the licensing firm’s relational preference for internal and external orientation. Using firm-level data of the Korean pharmaceutical firms, the study categorised the distinct strategic orientations of firms based on the proposed matrix model. The results indicated that firms with higher R&D (research and development) expenditures have a tendency to greater external exploitation of technological knowledge than firms with low R&D spending. The study provides potential avenues for targeting of licensing partners from the perspective of firms seeking to in-license or out-license their innovations. |
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Keywords: | Pharmaceutical industry network analysis innovation strategy licensing |
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