Abstract
Greek pharmaceutical industry has been emerged as one of the major drivers for the Greek manufacturing sector mostly from 2000 until 2011. The value-added of the industry in the overall economy is indicated through its impact on the gross value-added production, employment, exports, innovation and global competiveness. Greek pharmaceuticals firms have one of the highest shares of investment in innovation and R&D activities in the total Greek economy. The purpose of this study is to investigate the potential causal relationship between industry-level competitiveness, profitability and R/D intensity. Specific financial ratios have been selected for the regression analysis using a sample of Greek pharmaceutical firms with in-house Research and Development department. The period of the analysis has been defined between 2004 and 2015. According to the existing literature, it is expected that R/D intensity plays a significant role on the profitability for pharmaceutical firms.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
References
Donelson DC, Resutek J (2012) The effect of R&D on future returns and earnings forecasts. Springer science and business media
Erickson G, Jacobson R (1992) Gaining comparative advantage through discretionary expenditures: the returns to R&D and advertising. Manag Sci 38(9):1264–1279
European Federation of Pharmaceutical Industries and Associations (EFPIA) (2018) The pharmaceutical industry in Figures, www.efpia.org (accessed January 2019)
Fischer C, Schornberg S (2007) Assessing the competitiveness situation of EU food and drink manufacturing industries: an index–based approach. Agribusiness 23(4):473–495
Foundation for Economics and Industrial Research (2018) The pharmaceutical market in Greece: facts and figures in 2018, https://iobe.gr/
Ghaffar A, Khan WA (2014) Impact of research and development on firm performance. Int J Account Finan Rep 4(1):357–367
Goto A, Suzuki K (1989) R&D capital, rate of return on R&D investment and spillover of R&D in Japanese manufacturing industries. Rev Econ Stat 71(4):555–564
Griliches Z (1986) Productivity, R&D, and the basic research at the firm level in the 1970s. Am Econ Rev 76(1):141–154
Hashi I, Stojcic N (2010) The impact of innovation activities on firm performance using a multi-stage model: evidence from the community innovation survey 4. CASE network studies and analyses, No. 410
Hayes RH, Abernathy WJ (1980) Economic scene results now: pay later? The New York Times
Jefferson G, Huamao B, Xiaojing G, Xiaoyun Y (2006) R&D performance in Chinese industry. Econ Innov New Technol 15:345–366
Kafouros M (2005) R&D and productivity growth: evidence from the UK. Econ Innov New Technol 14(6):479–497
Koellinger P (2008) The relationship between technology, innovation, and firm performance- empirical evidence from e-business in Europe. Res Policy 37:1317–1328
Makris I (2008) The factors affecting firms’ growth: investment in tangible versus intangible assets in the Greek pharmaceutical industry. Int J Behav Healthc Res 1(1):91–104
Makris I (2016) The effect of innovative activity in firm performanceand development: Analysing data from eurozone. Int J Bus Econ Sci Appl Res (IJBESAR) 9(2):87–92
Notta O, Vlachvei A, Samathrakis V (2010) Competitiveness-the case of Greek food manufacturing firms. Int J Arts Sci 3:211–225
OECD (2013) Science. Technology and Industry Scoreboard, OECD Publishing. https://doi.org/10.1787/sti_scoreboard-2013-en
OECD (2018) Science, technology and industry outlook. OECD Publishing, https://www.oecd.org/innovation/oecd-science-technology-and-innovation-outlook-25186167.htm
Porter ME (1990) The competitive advantage of nations. The Free Press, New York
Porter M (1980) Competitive strategy. The Free Press, New York
Voulgaris F, Lemonakis C (2014) Competitiveness and profitability: the case of chemicals, pharmaceuticals and plastics. J Econ Asymmetr 11:46–57
Vurur NS, Ilarslan K (2016) Analysis of the relationship between R & D expenditure and profitability: a sample application from BIST. J Multidisc Dev 1(1):103–112
Wakelin K (1998) Innovation and expert behavior at the firm level. Res Policy 26(7–8):829–841
Wang CH (2011) Clarifying the effects of R&D on performance: evidence from the high technology industries. Asia Pac Manag Rev 16(1):51–64
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2020 The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG
About this chapter
Cite this chapter
Kounnou, V., Kyrkilis, D. (2020). Competitiveness, Profitability and R/D Intensity: The Case of the Domestic Pharmaceutical Industry in Greece. In: Horobet, A., Polychronidou, P., Karasavvoglou, A. (eds) Business Performance and Financial Institutions in Europe. Contributions to Economics. Springer, Cham. https://doi.org/10.1007/978-3-030-57517-5_3
Download citation
DOI: https://doi.org/10.1007/978-3-030-57517-5_3
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-57516-8
Online ISBN: 978-3-030-57517-5
eBook Packages: Economics and FinanceEconomics and Finance (R0)