Financialized Corporations in a National Innovation System: The US Pharmaceutical Industry

What is the most fundamental driver that motivates a business enterprise to pursue economic growth? Is it profits or products?

Driven by shareholder-value ideology, the U.S. pharmaceutical industry has adopted a highly financialized business model. Its key performance metrics are stock-price yield and dividend yield, supported by distributions to shareholders through large-scale stock buybacks and cash dividends.

This 2019 article via @SOAS chronicles the timeline of major policies that have shaped the institutional environment of the American pharmaceutical industry, documenting the evolution of the U.S. innovation system for pharmaceutical drug development since the 1920s.

This is a pre-publication version. A revised version of this paper is published in the International Journal of Political Economy (@tandfonline).