The evolution of the pharmaceutical industry

This article provides an overview of the main traits of the historical development of the pharmaceutical industry, using the lenses of the evolutionary approach to economic and industrial change. After a brief overview of the main evolutionary concepts which guide the subsequent discussion, our presentation identifies four main eras: from the formative stages (from the late 1800s to War World II) to the so-called Golden Age (the 1940s to the mid-1970s), the biotechnology revolution (the 1970s to the new millennium, approximately) and what we label the ‘Winter of Discontent?’ (the first decade of the new century). Within all these epochs, we discuss the main trends in technology, firms' strategies and structures, patterns of competition, demand, regulation and institutional developments. Section 6 concludes the article, briefly discussing some main implications for the present and future of the industry on the one hand and for the relevance of an evolutionary approach to the analysis of corporate and industrial change on the other.