Getting Competition Down to a Science: The Effects of Technological Competition on Firms' Scientific Publications

Abstract

Prior research about the interaction between private firms and the scientific community has largely viewed firms' articles in scientific publications as a means to improve research and development productivity—by encouraging their researchers to publish scientific papers, firms can maintain linkages with the scientific community, attract talent, and access external knowledge on which they can build to create innovations. This paper, in contrast, emphasizes the role of scientific publications in firms' battles for market dominance and examines how competitive conditions shape firms' propensities to publish scientific articles about their innovations. Focusing on the context of pharmaceutical drugs, we develop propositions about how the competition that one drug faces from similar drugs and potential substitutes influences the innovating firm's inclination to publish articles in the top medical journals about that drug to facilitate its assessment by the U.S. Food and Drug Administration and the medical community. We also propose that scientific articles about competing drugs compel a firm to highlight its own drug in scientific papers to assert the drug's uniqueness and mitigate the threat of substitution. Whereas prior research has elucidated how science contributes to enhancing firms' competence at creating innovations, which is critical to their ability to compete in technology-intensive environments, this paper draws attention to how competition, in turn, permeates into the scientific arena, creating inducements for firms to use scientific publications to position their innovations in the marketplace.