We evaluate the impact of basic research on pharmaceutical firms' technological performance, distinguishing between internal basic research and the exploitation of external basic research findings. We find that firms increase their performance by engaging more in internal basic research, in...

This analysis contributes to the understanding of the role of basic science in generating breakthrough inventions (BTs) in the pharmaceutical industry. Recognizing the within-firm heterogeneity of inventive activities, we look not only at the firm level, but also at the firm-technology level for...