The pharmaceutical industry in the twentieth century: A reappraisal of the sources of innovation

Abstract

Abstract The authors use an historical case‐study of a single line of therapeutic development (in vaccines and serum antitoxins) to bring out salient aspects of the shifting sources of innovation in the pharmaceutical industry during the twentieth century. Their emphasis is on the complex relationships that have evolved between three companies ‐ Mulford, Sharp & Dohme, and Merck & Co., Inc. ‐ and the loosely integrated networks of public, profit‐making, and non‐profit institutions that have been central to the process of innovation in this science‐based industry. Galambos and Sturchio enumerate the characteristics of pharmaceutical organisations that have remained successful innovators over the long term.