Gambardella, A. (1992), Research Policy, 21(5), 391-407 2012 Fall Seminar on Technology Strategy  Competitive advantages from in-house scientific research: The US pharmaceutical industry in the 1980s Gambardella, A. (1992), Research Policy, 21(5), 391-407 2012. 9. 24 박사과정 4학기 한상연 I am Chulwoo Baek and I am working for KISTEP. KISTEP has similar functions as NISTEP in Japan. KISTEP deals with R&D policy and evaluation of National R&D program, and feasibility studies. Since last July, I have been working for Institute of Economic Research of Hitotsubashi university as a visiting status. This research is joint research with Dr.Kim in Hitotsubashi University and Professor Kwon in Nihon University. As you know, there are many debates on economy growth of East Asian countries including Korea, and these countries encountered the Asian financial crisis in 1997. So, this research aims to measure the long-time trend of Total Factor Productivity and to identify the effect of competition on TFP growth rate.

Ⅰ. Summary(1) Science as a public goods firms can take advantage at no cost of the information produced by academia and other non-profit research institutions. The role of in-house scientific research a means of absorbing external knowledge( Cohen and Levinthal, 1989) the price to plug into the outside information network(Rogenberg, 1990) Focus of Paper This graph shows long-term trend of per capita income of Korea It has been stagnant until 1980’s But after 1980’s it shows exponential increase. Some people named this period “the miracle of Han river” As Korea economy encountered the Asian financial crisis in the end of 1997, per capita income decreased drastically. However, it recovered rapidly to 16,000 dollars in 2005, and it exceeded 20,000 dollars in 2007. explores whether, in spite of the public nature of science, large US drug manufacturers have differed in their ability to exploit the public good

Ⅰ. Summary(2) The firms in the case studies Merck : an internal organization of research that resembles academic departments or other scientific institutions - peer group evaluation, using external basic research results Eli Lilly : investing both in equipment, and in learning the new technique from Agouron Bristol-Myers/Squipp : shifting to research-oriented group - comprehensive agreement with Yale University - acquired genetic systems and Oncogen, specialized in biotechnology SmithKline : late R&D Investment and late performance, Tagamet - Restructuring in R&D after entering competitor Glaxo’s Zantac This graph shows long-term trend of per capita income of Korea It has been stagnant until 1980’s But after 1980’s it shows exponential increase. Some people named this period “the miracle of Han river” As Korea economy encountered the Asian financial crisis in the end of 1997, per capita income decreased drastically. However, it recovered rapidly to 16,000 dollars in 2005, and it exceeded 20,000 dollars in 2007. Rorer : Too short periods to invest more R&D - aggressive strategy to increase the R&D, acquired by Rhone-Poulene

Ⅰ. Summary(2) Test of interfirm differences in exploiting public science This graph shows long-term trend of per capita income of Korea It has been stagnant until 1980’s But after 1980’s it shows exponential increase. Some people named this period “the miracle of Han river” As Korea economy encountered the Asian financial crisis in the end of 1997, per capita income decreased drastically. However, it recovered rapidly to 16,000 dollars in 2005, and it exceeded 20,000 dollars in 2007. Company patents are positively correlated with the scientific publications of the firms

Ⅱ. Discussion(1) The effectiveness of Catch-up Strategy What does the strategy of Samsung Biologic resemble firms’ one in our paper? This graph shows long-term trend of per capita income of Korea It has been stagnant until 1980’s But after 1980’s it shows exponential increase. Some people named this period “the miracle of Han river” As Korea economy encountered the Asian financial crisis in the end of 1997, per capita income decreased drastically. However, it recovered rapidly to 16,000 dollars in 2005, and it exceeded 20,000 dollars in 2007. In the respective of papers in this session, discuss and predict the validity of Samsung’s strategies - technology sourcing, cooperation, Joint-Venture, transferring of Informal Knowledge

Ⅱ. Discussion(2) The Classification and Segmentation of R&D capability What’s the difference between Capability of in-house research and Absorptive Capacity? Following the diffusion of Open innovation economy, except capability of R&D in itself and internalization, what Is the other capability for innovation of firms? - focus the ability to investigate the exact demand knowledge In the point of this paper and others, the strategy of Samsung can not be effective due to lack of current R&D capability. What are your views on that? This graph shows long-term trend of per capita income of Korea It has been stagnant until 1980’s But after 1980’s it shows exponential increase. Some people named this period “the miracle of Han river” As Korea economy encountered the Asian financial crisis in the end of 1997, per capita income decreased drastically. However, it recovered rapidly to 16,000 dollars in 2005, and it exceeded 20,000 dollars in 2007.

Tessa C. Flatten, Andreas Engelen , Shaker A Tessa C. Flatten, Andreas Engelen , Shaker A. Zahra , Malte Brettel (2011), A measure of absorptive capacity: Scale development and validation, European Management Journal , 29, 98– 116

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