MURAL - Maynooth University Research Archive Library



    Shareholder returns and the exploration–exploitation dilemma: R&D announcements by biotechnology firms


    McNamara, Peter and Baden-Fuller, Charles (2007) Shareholder returns and the exploration–exploitation dilemma: R&D announcements by biotechnology firms. Research Policy, 36. pp. 548-565. ISSN 0048-7333

    [img]
    Preview
    Download (266kB) | Preview


    Share your research

    Twitter Facebook LinkedIn GooglePlus Email more...



    Add this article to your Mendeley library


    Abstract

    We explore a financial returns dimension of the exploration–exploitation dilemma. Using 1277 R&D announcements by 178 listed bio-pharmaceutical firms, we examine whether investors are myopic along the continuum of exploration (patenting and preclinical trials) to exploitation (human clinical trials and NDA).We find that investors respond positively at every stage, but there are differences between small and large firms. For small firms exploration is favored, provided it is focused. For large firms, there is value in both exploration and exploitation. Projects which are part of an alliance are no more likely to generate abnormal returns. Policy implications are discussed.

    Item Type: Article
    Additional Information: The definitive version of this article is available at Shareholder returns and the exploration–exploitation dilemma: R&D announcements by biotechnology firms; pp. 548-565 Peter Mc Namara, Charles Baden-Fuller DOI: 10.1016/j.respol.2007.02.012
    Keywords: R&D; Knowledge based view; Financial performance; Event study; Alliances;
    Academic Unit: Faculty of Social Sciences > School of Business
    Item ID: 5530
    Identification Number: https://doi.org/10.1016/j.respol.2007.02.012
    Depositing User: Peter McNamara
    Date Deposited: 03 Nov 2014 16:37
    Journal or Publication Title: Research Policy
    Publisher: Elsevier
    Refereed: Yes
    URI:

      Repository Staff Only(login required)

      View Item Item control page

      Downloads

      Downloads per month over past year