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KMID : 0370220190630040204
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Yakhak Hoeji
2019 Volume.63 No. 4 p.204 ~ p.213
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The Effects of R&D Investment and Marketing Expenses on the Performance of Korean Pharmaceutical Companies
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Jung Jae-Eun
Kang Min-Ku
Bang Joon-Seok
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Abstract
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The purpose of this study was to investigate the effect of R&D investment and marketing expenses on theperformance 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, operatingprofitability. In addition, the differences between innovative and non-innovative pharmaceutical companies were alsoexamined. Both the amount and the ratio of R&D investment over sales activities were significantly higher in theinnovative pharmaceutical companies compared with the non-innovative pharmaceutical companies. In these competitivecircumstances, 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&Dactivities to increase the capabilities for developing innovative new products and future prosperity.
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KEYWORD
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Pharmaceutical company, R&D investment, marketing expense, company performance, sales growth rate, operating profit
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