Ganuza, Juan-José; Llobet, Gerard; Domínguez, Beatriz - In: Management Science 55 (2009) 4, pp. 539-551
It is commonly argued that in recent years pharmaceutical companies have targeted their research and development (R& D) at small improvements of existing compounds instead of riskier drastic innovations. In this paper, we show that the bias in the pharmaceutical industry toward small innovations...