Abstract

This paper analyzes ICT diffusion in the biopharmaceutical industry. Since new paradigms emerge in the industry towards precision medicine and fasten the digitalization of health care, it is necessary to measure the changing value system, especially between life science and the IT industry. The global value chain (GVC) concept is used and data are extracted from the Trade in Value Added (TiVa) dataset (June 2015) from the GVC-OECD project on interconnectivity of economics and industry. A number of indicators were selected: Foreign value added share of gross exports, % of ICT imported in chemicals as a final product, either exported or in use in domestic demand. Trade data are analyzed for two industries: chemical industry, including pharmaceuticals, and the ICT industry for a group of countries: USA, Switzerland, France, Germany, UK and Japan. Only 0.5 to 1% of value added embodied in final chemicals and chemical products can be attributed to the ICT industry. An additional analysis shows higher prices of connectivity for services in the USA versus Japan and Germany, on a price index for a basket of broadband services (fixed and wireless, OECD 2013); this may also reflect the open model of US innovation with more transactions. Fast digitalization of life science requires new measures. TiVa dataset is useful for some IT equipment, but not sufficient for all forms of digital economy. The value chain concept is useful for pricing mobile computing in pharmaceuticals, but needs specific data on connectivity. Complementary datasets (e.g. EU KLEMS) can also track ICT investment in chemicals.

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