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Given this scenario we pose the question: Is it possible to link knowledge acquired via an acquisition to technological development? Our main contribution is to link knowledge base characteristics to potential directions taken in the technological development process. KEYWORDS: Pharmaceutical industryPharmaceutical industry,mergers and acquisitionsmergers and acquisitions,knowledge baseknowledge base,patentspatents,inventorsinventors.
En este artículo, la LPHF amplía su base de conocimientos incorporando parte de las bases de conocimientos de la pequeña empresa. Para responder a esta pregunta, desarrollamos un enfoque que permite observar el impacto de la base de conocimientos differences between knowledge base and database la pequeña empresa en la base de conocimientos del adquirente. Nuestra principal contribución es vincular las características de la base de conocimientos con las posibles direcciones tomadas en el proceso de desarrollo tecnológico.
Esse objetivo foi atingido qualitativamente com base em uma amostra de oito grandes empresas e 51 pequenas empresas adquiridas. Un estudio centrado en la industria farmacéutica. Studies that focus on big-pharma have been discussing an apparent paradox; pharmaceutical companies have been substantially increasing their patent numbers, while new chemical entities NCE - is a drug that contains part of an differences between knowledge base and database molecule approved by any regulatory office- remain stable.
Nowadays, all large pharmaceutical firms LPHF have some kind of scouting team looking for promising new technologies that are being developed by small pharmaceutical firms SPHF. The literature is not yet addressing properly the relationship between small and large firms. Even fewer studies concentrate on the interactions between small and large firms e. Currently, many studies highly focus on post-acquisition performance. The approach adopted by these studies has two limitations.
First, productivity issues are not a patenting activity problem; this specific point is beyond the scope of this study. Second, the post-acquisition performance approach does not deal with the knowledge flow between small and large firms. In short, these studies treat firms as black boxes, in which acquisitions are inputs and patents are outputs, thus the problem is only a matter of correlating acquisitions with the increase or decrease in patenting activity.
In an attempt to overcome this black box problem, we pose an important question: Is it possible to link the knowledge acquired through acquisitions to technological development? To answer this question, we developed an approach that focused on the concept of the analytical knowledge base and that enables us to observe and track the impact of the analytical knowledge base of small firms on large firms. This study does not focus on the outcomes of the acquisitions, which has been discussed in other studies, many of which are referenced here.
The main contribution of this article is to propose an approach that overcomes the black box problem, which enables the knowledge base building blocks to be linked to the technological development of the enterprise. Therefore evidence that the knowledge bases of small firms have an impact on the technological development of LPHFs in different ways. This article proceeds as follows. The next section discusses acquisitions differences between knowledge base and database by technological interests, in which the knowledge bases of firms are incorporated.
The third section discusses the methodology. The fourth section presents and discusses the results, and the final section concludes the article. Chakrabarti, Hauschildt and Sürverkrüp and Gerpott what are the types of nouns and definition among the first to turn their attention to acquisitions in which the main driver was technological interests. Based on Nightingaletherefore, we consider technology in the form of patents as rational processes, and scientists as cognitive processes.
Patents are specific technologies that are classified according to the purpose for which they were developed. According to Strumsy and Lobo ; Verhoeven et al. In essence, Cohen and Levinthal are stressing that firms become better able to understand, search, differences between knowledge base and database and use external knowledge bases the more research they conduct. For instance, the merger of differences between knowledge base and database that are very similar would only lead to duplication.
Therefore, there must be differences in the knowledge bases of firms to provide the opportunities needed for learning and developing absorptive capabilities Makri et al. In other words, the differences in the knowledge bases of acquisition targets must provide learning opportunities, which the acquirer can translate into new products and may even generate new technological trajectories Cloodt et al. Along the same lines, Edjemo and Örtqvist found that increasing differences between firms measured by way of patent classes lead to diminishing returns in innovative entrepreneurial output.
It is as if an optimal degree of difference maximizes innovative output. We believe that relatedness works as a mediator in knowledge transfer processes. For this study, the role of relatedness can be observed in technology. But the analytical knowledge base has another important building block linked to differences between knowledge base and database processes; the workforce.
Arguably, all employees in an enterprise compose and alter its knowledge base. In an attempt to reduce this scope, we follow Asheim and HansenGrillitsch et al. In line with these studies the Matos uses inventors, who are described in the patent information as proxies for the main traceable occupation in the innovation processes of analytical knowledge bases.
This human resource is pivotal, especially in already formalized ventures, like those we are focusing on here. Individually, a prestigious scientist is known and, at the same time, tied differences between knowledge base and database their research, because it is what distinguishes them. Consequently, there is a lock-in effect between the researcher and the research agenda, regardless of their workplace What is causal reasoning in history, If scientists move from one firm to other because of the promising research they are doing, they will continue with the same line of research in the new firm.
As a result, acquisitions are used by large firms to access the knowledge base of a small firm. We suppose that knowledge transfer is a consequence of acquisitions mediated by relatedness, which is one way of dealing with this process. Therefore, each of these building blocks should be considered when observing the knowledge base impacts resulting from acquisitions. This is how we think the main concepts presented in this article interplay.
Some recent studies have discussed related ideas, e. These 8 firms acquired 51 SPHFs. This report contains: i the target companies; ii the acquiring companies; and iii the amount paid. Another important data source was Forbes list of the largest companies in the world, which we used to determine the largest firms. A similar approach involving knowledge base notions was used by Lange and WagnerEdjemo and Örtqvist Indirect impact of an external analytical knowledge base: This process will enable us what does the slang term ride dirty mean draw an evolutionary picture that compares relational database in dbms in hindi base relatedness.
In this regard we track when the LPHF had differences between knowledge base and database patent granted in the same patent classes as its target differences between knowledge base and database. This comparison offers a time-perspective observation of the construction of the knowledge base. Here we choose to focus on biotechnology only, because it follows the technological category classifications developed by Hall et al. We must stress that with regard to the indirect use of external knowledge bases, we consider only the subclasses of Classes and This idea is mainly based on the work of: Hall et al.
Here we observe which patents of the target firms were cited by the acquiring LPHF. We also use citation lags, calculated by Hall et al. Utilization of inventors: this concept was used and further explored by Matos To do so we differences between knowledge base and database all target firm inventors who had had at least one patent issued for the SPHF. In order to corroborate our choice, Asheim and Hansen show a significant statistical correlation between analytical knowledge base occupations and patent indices.
The process of patenting in different patent classes is a process of creating absorptive capabilities. In this process, LPHFs and SPHFs may develop patents pertaining to the same patent classes, thereby increasing their analytical knowledge base relatedness over time. Figure 1 illustrates knowledge base relatedness in all subclasses of Classes and biotechnologies in a time perspective. To arrive at this result, we first determined the analytical knowledge bases of the small firms, following we searched for the why is it called a love child patent granted for each LPHF in the same patent classes as its target s.
The Y axis shows the number of new classes developed. A new class is considered when a patent is first granted to the large enterprise in a patent subclass. The X axis indicates the years. For example, inGSK started to patent in five new classes. Figure 1 Indirect use of external knowledge base Source: Prepared by the authors. This figure can be divided into three main areas: i from toii from toand iii from onwards. From toa few firms developed a few new classes. This period resembles an early period in the development of biotechnology, as Sharp proposes.
From tothis process became more intensive as more classes and more firms started to develop new classes. Finally, the development of new classes slowed down from onwards. Figure 1 summarizes the arguments of Sharp and Malerba and Orsenigowho point to the scattered and slow development of biotechnologies in large firms. Over time, and as collaboration between large and small firms increased Organization for Economic Cooperation and Development [OECD], ; Sharp,so did the development of biotechnologies.
Another important element was the Bayh-Dole Act ofwhich allowed researchers and universities to own and commercialize their research outputs, thus increasing the number of biotechnology patents Hall, From Figure 1we can clearly see that LPHFs slowly start developing similar knowledge bases as their targets, and this process accelerated between and The acquisitions we looked at to occurred in the same period as the development of new classes started to slow down from to ; first we how to describe linear relationship a growth in knowledge bases, then acquisitions take place.
Similarly, Desyllas and Hughesshowed the propensity of firms with a large body of knowledge to acquire high-tech companies. We can further develop our analyses to observe the degree what does molecular taxonomy mean relatedness between the LPHF and its targets.
The idea is very simple; the incorporation of SPHFs allows LPHFs to develop similar analytical knowledge bases, but as the process continues the possibility of creating new patent classes decreases. Thus, the expansion of knowledge bases based on acquired knowledge slows down differences between knowledge base and database time. The opposite is also true; a certain degree of differences between knowledge bases, may lead to more opportunities for the large enterprise to develop innovations Ahuja e Katila, In order to observe this potential, Table 2 outlines the classes not developed.
Table 2 shows different degrees of relatedness. Even Astra-Zeneca and Abbott-Laboratories have an intermediate degree of relatedness, but all other firms are extremely similar. Therefore, the data indicate that company knowledge bases start with a degree of relatedness that how to graph with slope intercept form grow over time as acquisitions become more frequent.
Similar knowledge bases, however, have an important aspect, which possibly indicates differences between knowledge base and database SPHFs contribute towards improvements in already developed patent classes. Firms may understand the same piece of knowledge, but the innovative solution to the problems differs from one enterprise to another, i.
We capture this behavior when firms start to produce several patents in the same patent class, because these firms are further developing broad categories of knowledge patent classesand creating specific technological solutions inventions. Thus, the production of patents within classes shows that an enterprise is improving the knowledge of a patent class by adding new pieces of knowledge to a broader category. The knowledge base of these firms may be best quotes in hindi 2 line for specific technological solutions in already developed classes.
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