Written by internationally acclaimed experts in the economics of innovation, this volume examines how the biotechnology and pharmaceutical sector is affected by the dynamics of innovation, institutions, and public policy. It contributes both theoretically and empirically to the increasingly influential Schumpetarian framework in industrial economics, which places innovation at the centre of the analysis of competition. Both quantitative and qualitative studies are included, and this varied perspective adds to the richness of the volume's insights. The contributors explore different ideas regarding the historical evolution of technology in the sector, and how firms and industry structure have co-evolved with innovation dynamics. Important policy questions are considered regarding the future of innovation in this sector and its impact on the economy.

Review of the hardback:'The pharmaceuticals industry presents a fascinating set of paradoxes. Dramatic advances in fundamental science have been associated with a wave of mergers among the leading pharmaceutical firms, the entry of small drug-discovery specialist firms, large increases in industry R&D spending and an apparent slowdown in the rate of innovation. This collection examines these paradoxes and derives important implications for our understanding of this science-based industry and for our understanding of industrial dynamics more generally. This volume will be of great interest to students of evolutionary economics, economic theorists and empirical researchers.'

David C. Mowery - University of California - Berkeley

Review of the hardback:'This volume is remarkable and exciting for several reasons - a topic of first-order social importance, outstanding authors, excellent research. Above all, it has the high energy that comes from engaging topical controversies in key areas of scholarship and public policy.'

Sidney G. Winter - University of Pennsylvania

Review of the hardback:'An enriching intellectual tour through the complex and dynamic landscape of the pharmaceutical industry. The rigorous analyses contained in the volume explore a variety of the most salient issues in the economics of innovation and industry evolution.'

Gary Pisano - Harry E. Figgie, Jr., Harvard Business School