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WP 00-3

Louis Galambos, Jeffrey Sturchio. Science, Executive Leadership, and Business: The Multinational Gives Way to the Global Firm in Pharm

Keywords: Industry evolution, top management teams, globalization.

Abstract:

The authors conclude that in pharmaceuticals the MNE, which operates through susidiaries in a number of nations but is controlled by nationals from the headquarters country, is starting to give way to a new form of global enterprise which draws its executives as well as its employees from a wide variety of national cultures, educational systems, and business settings.  R&D and in some cases R&D leadership are internationalized.  Using a prosopographical methodology, they develop data that is consistent with the theory of evolutionary economics, which suggests that greater diversity will conduce to a more successful adaptation to a competitive environment.

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