Transaction costs and capabilities as determinants of the R&D boundaries of the firm: a case study of the ten largest pharmaceutical firms in Japan

✦ Synopsis

Abstract

The boundaries of the firm are an important issue in relation not just with the make‐or‐buy decision in production but also with research and development (R&D). Firms depend on universities to gain scientific knowledge, outsource some of their R&D works, purchase patented technologies, commission research, and participate in consortia. In this paper, we take the case of the 10 major pharmaceutical companies in Japan and show that they employ various types of research alliances with various partners, domestic or foreign. Two major theories to explain the boundaries, the transaction‐cost theory and the capability theory, are discussed and we argue that the observed pattern of research alliance is more consistent with the capability theory. Discussion is also made on the consortia and national projects these firms participate. Copyright © 2003 John Wiley & Sons, Ltd.

Acute and Chronic Toxicity of Veratrum V

Acute and Chronic Toxicity of Veratrum Viride††The Veratrum viride studied was the whole-powdered drug marketed by Irwin, Neisler & Co. under the name, Vertavis. The work reported herein was supported by a grant from this firm. The batch of powder used in these experiments was stated by the manufacturer to have been assayed biologically by the Craw method on Daphnia magna. One Craw unit of the material studied was stated to be 15.6mg. With regard to this assay, Mr. R. O. Craw has been so kind as to allow us to publish a brief explanation: A reference lot of Yerolrum oirid; powder was set-aside as a standard and a 10% w/v aqueous extract was made of this powder. The average median length of life in 50 assays of 1000 daphnia on immersion in the solution was determined to be 2.22 hours. The daphnia were considered dead when the heart was found to be in systolic standstill on microscopic examination. Succeeding lots of powder were assayed and their potency determined by relating the median length of life of daphnia to 2.22 hours, which is one unit. Twenty assays of 10 animals each were used on each lot of powder.‡‡The authors wish to thank Dr. J. F. A.,McManus of the Department of Pathology for a pathologic report on the tissues, and Mr. James Thomas and Mrs. Bobby E. Teague for technical assistance.

✍ Perdue, Adoline S. ;Bell, Frances ;Starnes, W.R. ;Hitchcock, Philip ;Teague, R.S 📂 Article 📅 1950 🏛 Elsevier ⚖ 346 KB 👁 1 views