Figures; Tables; Contributors; 1. Introduction: innovation, growth and industry evolution Giovanni Dosi and Mariana Mazzucato; Part I. Innovation and Industry Evolution: 2. Pharmaceutical innovation as a process of creative destruction Frank Lichtenberg; 3. The evolution of pharmaceutical innovation Paul Nightingale and Surya Mahdi; 4. Firm and regional determinants in innovation models: evidence from biotechnology and traditional chemicals Myriam Mariani; 5. Comments on Part I Lou Galambos; Part II. Firm Growth and Market Structure: 6. Growth and diversification patterns of the worldwide pharmaceutical industry Giulio Bottazzi, Fabio Paolli and Angelo Secchi; 7. Heterogeneity in the firms' growth process: the case of the pharmaceutical industry Elena Cefis, Matteo Ciccarelli and Luigi Orsenigo; 8. Entry, market structure and innovation in a history-friendly model of the evolution of the pharmaceutical industry Christian Garavaglia, Franco Malerba and Luigi Orsenigo; 9. Comments on Part II Boyan Jovanovic; Part III. Policy Implications: 10. Effects of research tool patents and licensing on biomedical innovation John P. Walsh, Ashish Arora and Wesley Cohen; 11. Upstream patents and public health: the case for generic testing of breast cancer Fabienne Orsi, Christine Sevilla and Benjamin Coriat; 12. Competition, regulation and intellectual property management in GM foods: preliminary evidence from survey data Pierre Regibeau and Katherine Rockett; 13. Governance, policy and industry strategies: agro-biotechnology and pharmaceuticals Joanna Chataway, Joyce Tait and David Wield; 14. The dynamics of knowledge accumulation, regulation, and appropriability in the pharma-biotech sector: policy issues Luigi Orsenigo, Giovanni Dosi and Mariana Mazzucato.