Co-Evolutionary Innovation Patterns in the Pharmaceutical Industry Since 1888

This paper examines the relation between the innovation output from universities and the innovation output from industry on a historic-empirical data base in the pharmaceutical industry. We suggest a stable cross-country pattern of innovation output to exist where public funded universities act as a trigger for new scientific developments, opening the way for a new industry to emerge. Our results highlight the importance of publicly funded basic research for future socio-economic benefits