Innovation Management as a Post-Modern Phenomenon: The Outsourcing of Pharmaceutical R&D

The institutionalization of R&D by large, modern organizations is regarded as one of the most significant social and economic factors of the twentieth century. In recent years post-modern organizations have begun to replace bureaucratic control with market control. This approach is particularly attractive in the case of R&D employees who have been relatively successful in resisting direct managerial control. Government statistics are used to demonstrate that external R&D increased from 5% to 16% of internal R&D expenditure between 1989 and 1995. This trend is examined in the context of consolidation within the UK pharmaceutical industry, which has considerable implications for the sustainability of high-technology industry in the UK.