In many markets invention and innov

In many markets invention and innovation are important competitive tools, more
important than traditional tools of competition like price or advertising. The commonly
quoted example is of pharmaceuticals, where the level of R&D and innovation is very
high. The introduction of a new drug can have dramatic effects on markets. Although
pharmaceuticals is not shown as a separate category in Table 8.2, it accounted for 20 per
cent of total R&D spending in 2002.