This book covers a strategic industry analysis of a globally operating pharmaceutical and biotechnology industry. Both biotechnology and large pharmaceutical firms compete in a network industry characterized by rapid technological change which leads to industry change and market structure. In particular, these firms depend on the creation of new knowledge. New knowledge presents particular issues regarding transferability. Innovation potentials and alliance competencies should be prevalent in any market characterized by fast changing intangible assets , given the difficulties in trading intangibles; moreover, in industries with very high rates of technology change, technologies can be introduced that create new market segments, obsolesce existing product lines, and create substantial competitors from previously little-known firms.
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