MODES OF EXPERIMENTATION - AN INNOVATION PROCESS - AND COMPETITIVE - VARIABLE

The outputs of R&D, such as new research findings and new products and services, are generated with the aid of specialized problem-solving p rocesses. These processes are somewhat arcane and have been largely ig nored in studies of technical change. However, their improvement can s ignificantly affect the kinds of research problems that can be address ed, the efficiency and speed with which R&D can be performed, and the competitive positions of firms employing them. In this paper, we first describe the general nature of the trial-and-error problem-solving pr ocesses and strategies for experimentation used in the development of new products and services. We next discuss the rapid advances being ma de in problem-solving methods, and the impact such advances can have o n the competitive position of adopting firms. Finally, we offer a deta iled case study of the impact one novel experimental method, combinato rial chemistry, is having on the economics of the drug discovery proce ss. (C) 1998 Elsevier Science B.V. All rights reserved.