From financialisation to innovation in UK Big Pharma : : AstraZeneca and GlaxoSmithKline / / Öner Tulum, Antonio Andreoni, William Lazonick.

The tension between innovation and financialisation is central to the business corporation. Innovation entails a 'retain-and-reinvest' allocation regime that can form a foundation for stable and equitable economic growth. Driven by shareholder-value ideology, financialisation entails a sh...

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Place / Publishing House:Cambridge : : Cambridge University Press,, 2022.
Year of Publication:2022
Edition:First edition.
Language:English
Series:Cambridge elements. Elements in reinventing capitalism
Physical Description:1 online resource (104 pages) :; digital, PDF file(s).
Notes:Title from publisher's bibliographic system (viewed on 30 Nov 2022).
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Summary:The tension between innovation and financialisation is central to the business corporation. Innovation entails a 'retain-and-reinvest' allocation regime that can form a foundation for stable and equitable economic growth. Driven by shareholder-value ideology, financialisation entails a shift to 'downsize-and-distribute'. This Element investigates this tension in global pharmaceuticals, focusing on the two leading UK companies AstraZeneca and GlaxoSmithKline. In the 2000s both adopted US-style governance, including stock buybacks and stock-based executive pay. Over the past decade, however, first AstraZeneca and then GlaxoSmithKline transitioned to innovation. Critical was the cessation of buybacks to refocus capabilities on investing in an innovative drugs pipeline. Enabling this shift were UK corporate-governance institutions that mitigated US-style shareholder-value maximisation. Reinventing capitalism for the sake of stable and equitable economic growth means eliminating value destruction caused by financialisation and supporting value creation through collective and cumulative innovation. This title is also available as Open Access on Cambridge Core.
Bibliography:Includes bibliographical references.
ISBN:1009278185
1009278177
1009278142
ISSN:2634-8950
Access:Open Access.
Hierarchical level:Monograph
Statement of Responsibility: Öner Tulum, Antonio Andreoni, William Lazonick.