In this paper I propose to discuss the implications of the development of the so-called third biotech generation (r-DNA techniques) for the pharmaceutical industry. This third generation of biotechnology represents an important discontinuity in the knowledge base used by pharmaceutical firms. Biotechnology, which essentially depends upon advances in molecular biology, and Pharmaceuticals, which was mainly based on chemistry and microbiology, were previously distinctively specialized and separate. They are now facing a context which drives the knowledge of these firms and sectors towards convergence.
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