By Andre Jungmittag, Guido Reger, Thomas Reiss

The internationalization of analysis and expertise is one key section of the globalization of alternate and company, with probably significant affects on styles of financial improvement and public rules around the world. even supposing convinced points of this internationalization pattern are good documented, and a few results may be quantified, the general procedures are super complicated and the results are hugely doubtful. The life of the phenomenon is usually approved, yet its value and the tendencies are at the moment the subject of a full of life debate. This examine on "New methods in Drug improvement in prescribed drugs" is a part of a 3 yr undertaking which goals at investigating how new innovations of commercial wisdom production are applied within the assorted environ­ ments of the innovation structures of the USA and Germany. the focus of the final venture is a sequence of case reviews of innovation perform in several nationwide and sectoral contexts. the subsequent sectors and technological fields are investigated: prescription drugs and new methods in drug improvement by way of the Fraunhofer Institute for structures and Innovation examine (ISI), complicated fabrics through the collage Hohenheim, Insti­ tute of foreign administration and Innovation (Alexander Gerybadze), monetary providers and residential banking by means of the Massachusetts Institute of Tech­ nology (MIT), heart for business functionality (Richard Lester) and the Sloan university of administration (Edward Roberts). Financially the undertaking used to be supported by way of the German-American educational Council, the German Federal Minstry of schooling, technological know-how learn and know-how and the Fraunhofer Society.

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Extra info for Changing Innovation in the Pharmaceutical Industry: Globalization and New Ways of Drug Development

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In the case of Germany, where national data are available until 1998, this decrease continued until today, however from 1997 to 1998 at least the speed of job cuts decreased. Over the same period, the share of pharmaceutical sector employees in employment for the manufacturing industry as a whole went up quite substantially in most countries (cf. 6). 22% in 1993), followed by Great Britain with a share of 1. 79% in 1992. 62%. 91% in 1994. When making comparisons of this kind it must be borne in mind, however, that growth of the pharmaceutical industry's share in employment may be attributable to two different causes: firstly, employment in the pharmaceutical industry may have risen or, secondly, there may have been an overall decrease in the numbers of employees in the other sectors.

Again, reductions of the shares of intermediate exports for European countries may be the result of the wider acceptance of common testing and inspection procedures. On the other hand, increasing exports of intermediates (like for France and partly also for Germany) might be linked with the expansion of international operations including intermediate exports to affiliates (cf. 0 ECD, 1996, p . 90) . As mentioned before, due to different governmental regulations pharmaceutical firms often must be present in the national markets for final products.

This market is moreover often characterized by price and profit controls. Such measures naturally limit the cash flow of the companies. Further regulations in this area are the limits to reimbursement for medicines, which can make price reductions necessary. Medicines can also be completely barred from reimbursement, so that sales decrease as a result. On the other hand, the sales of generics can be encouraged, i. e. of medicines which are no longer protected by patents and which can now be manufactured and sold by other pharmaceutical companies who have not had to bear the brunt of development costs.

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