Abstract
Biopharmaceutical research and development (R&D) productivity has been steadily declining for several decades. Preliminary evidence suggests that this trend is stabilizing or reversing. One hypothesis explaining this improvement in R&D productivity is that the industry has shifted early-stage R&D activity from large multinational pharmaceutical companies to more smaller venture-backed startup companies. We examine recent trends in FDA approvals and biopharmaceutical R&D investment to develop a framework to evaluate whether small companies are more productive at R&D than larger companies.
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