Morphological Change and Internal Growth Factors of Firms in the Korean Pharmaceutical Industry in Recent Decades

The pharmaceutical industry is a regulatory-based high-tech that requires long-term R&D investments from product development to market entry. This study investigates how firms in Korea have grown their production size, changed morphological structure, and identified the internal factors for sustainable growth recent decades. First, with time series data of collected based on records finished drugs, we studied change adapt environmental by using general analysis. Second, were divided into above-average non-above-average firms, high non-high decision tree technique analyze visualize determining firms. analysis result showed during past two decades, response undergoing policy changes, types products significantly over-the-counter ethical drugs shifted generic more R&D-intensive ones. Furthermore, non-growth three high-growth such as firm’s age, investment, drug ratio, choice between chemical bio drugs. research findings imply must combine strategy-side organization-side achieve or over long term. Some detailed business implications future topics are also presented.