British Pharmaceuticals: a cautionary tale

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