The Contact-Hitting R&D Strategy of Family Firms in the Japanese Pharmaceutical Industry

Shigeru Asaba, Tetsuo Wada

Research output: Contribution to journalArticle

Abstract

This article addresses the following question: How do family firms investing less in research and development (R&D) than nonfamily firms compete in R&D intensive industries? Using Japanese pharmaceutical industry data, we found that family firms produce more patents per R&D than nonfamily firms but are not biased toward low-value innovations. Further analyses of the distribution over innovation value suggested that family firms adopt a “contact-hitting R&D strategy,” avoiding radical innovations and pursuing incremental innovations compatible with their signature moves: innovation through tradition and narrow and internal search and resulting in may low-value innovations and a few mid or high-value innovations.

Original languageEnglish
JournalFamily Business Review
DOIs
Publication statusPublished - 2019 Jan 1

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Pharmaceutical industry
Family firms
Value innovation
Radical innovation
Investing
Innovation
Industry
Incremental innovation
Patents
Industry data

Keywords

  • contact-hitting R&D strategy
  • frequency distribution over innovation value
  • innovation productivity
  • signature moves

ASJC Scopus subject areas

  • Business, Management and Accounting (miscellaneous)
  • Finance

Cite this

The Contact-Hitting R&D Strategy of Family Firms in the Japanese Pharmaceutical Industry. / Asaba, Shigeru; Wada, Tetsuo.

In: Family Business Review, 01.01.2019.

Research output: Contribution to journalArticle

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