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
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: |
|
| Use Licence: |
This item is available under a Creative Commons Attribution Non Commercial Share Alike Licence (CC BY-NC-SA). Details of this licence are available
here |
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