Basic science as a prescription for breakthrough inventions in the pharmaceutical industry

This analysis contributes to the understanding of the role of basic science in generating breakthrough inventions in the pharmaceutical industry. Recognizing the within-firm heterogeneity of inventive activities, we look not only at the firm level, but also at the firm-technology level for characteristics determining breakthroughs. A key finding is that firms pursuing basic science are more likely to produce breakthrough inventions. At the same...