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The Effects of R&D Investment and Marketing Expenses on the Performance of Korean Pharmaceutical Companies
Yakhak Hoeji 2019;63(4):204-213
Published online August 31, 2019
© 2019 The Pharmaceutical Society of Korea.

Jae Eun Jung*, Minku Kang**, and Joon Seok Bang***,#

*Graduate School of Clinical Pharmacy, Sookmyung Women’s University, **College of Pharmacy, Woosuk University, ***College of Pharmacy, Sookmyung Women’s University
Correspondence to: #Joon Seok Bang, College of Pharmacy, Sookmyung Women’s University, Rm. 307, Cheongpa-ro 47-gil 100, Yongsan-gu, Seoul 04310, Korea Tel: +82-2-2077-7526 Fax: +82-2-710-9799 E-mail: jsbang@sm.ac.kr
Received January 7, 2019; Revised July 15, 2019; Accepted July 18, 2019.
Abstract
The purpose of this study was to investigate the effect of R&D investment and marketing expenses on the performance of the Korean pharmaceutical companies. The top-ranked forty companies in Korea were selected and the 6-year-long data were analyzed to obtain the correlations among R&D intensity, marketing expenses, growth rate, operating profitability. In addition, the differences between innovative and non-innovative pharmaceutical companies were also examined. Both the amount and the ratio of R&D investment over sales activities were significantly higher in the innovative pharmaceutical companies compared with the non-innovative pharmaceutical companies. In these competitive circumstances, R&D investment is indispensable for the sustainable growth in pharmaceutical companies. In conclusion, Korean pharmaceutical companies as well as government bodies should focus on more intensive and strategic R&D activities to increase the capabilities for developing innovative new products and future prosperity.
Keywords : Pharmaceutical company, R&D investment, marketing expense, company performance, sales growth rate, operating profit


October 2019, 63 (5)
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