PRODUCT INNOVATION, PRODUCT-MARKET COMPETITION AND PERSISTENT PROFITABILTIY IN THE U.S. PHARMACEUTICAL INDUSTRY

摘要

Increasingly, strategy scholars are exploring the relationships between innovation, competition, and the persistence of superior profits. Sustained hgih profitability may results when a firm repeatedly introduces valuable innovations that service previously unment consumer demands. While the returns to the firm each innovation may erode over time, innovation ensures that, overall, the firm maintains a high performance position. At the same time, sustained high profitability may also accrue to firms thawt innovate less often, but effectivley avoid the competition that otherwise erodes high returns.