Innovation strategy of local pharmaceutical firms in Korea: a multivariate analysis

Abstract

This article examines 37 local pharmaceutical firms in Korea to identify different patterns of innovation behaviour associated with four types of firms, which are categorized by two variables: the scale of operation and technological capability. Both bivariate and multivariate analyses support the hypotheses that these four types of firms exhibit different innovation strategies and in turn the level of performance they achieved. There are also fragmented indications that many local firms have long evolved from small firms with low capability to large firms with high capability. Finally, managerial and theoretical implications for the innovation strategies in LDCs/NICs are discussed. -from Authors