Biotech revolution: the impact of biotechnology on the pharmaceutical industry

Abstract

This paper analyses the impact of biotechnology on the pharmaceutical industry based on Schumpeter's concept of technological change. The economists have argued from different perspectives that the change in biotechnology is either revolutionary or evolutionary. The study attempts to structure the comparison of these conceptual differences in order to explain the generalisability of their studies with regard to the degree of technological change. Policy decisions, both at the firm level and the national level, would greatly benefit from a clearer understanding of the technological change in the pharmaceutical industry.