The Growth of R&D Investment and Organizational Changes by Japanese Pharmaceutical Firms, 1975-1993

Abstract

Abstract In this chapter we examine the growth of R&D investment and organizational changes undertaken by Japanese pharmaceutical manufacturers during the past two decades. Many firms in the Japanese pharmaceutical industry have taken great strides toward world levels of R&D intensity and product output, but contrary to many other industries discussed elsewhere in this volume, the industry leaders remain below the sales volume of leading global players in the industry. In 1990, for example, the largest Japanese firm spent about $350 million (9% of sales) on R&D, whereas Bristol-Myers Squibb spent $854 million (9% of sales) and Merck spent $881 million (11% of sales).