BRITISH PHARMACEUTICALS - A CAUTIONARY TALE

British pharmaceuticals is generally represented as a successful secto r which illustrates the potential of knowledge-intensive, high-value-a dded activities. This article presents a revisionist account based on evidence and argument. Pharmaceuticals is a small sector which combine s high-value-added and average wages to benefit capital not labour. Th e knowledge base in the laboratory creates imitative product with mark eting then applied to capture social expenditure. When product-market growth slows, the sector restructures defensively without solving its problems.