According to BSC, most of people accept the representative balanced scorecard including at least four dimensions, including “Learning and Growth”,
“Internal Processes”, “Customer” and “Financial”. Thus, the author takes these dimensions as the research dimensions in this study. Based on the development strategy as Table 3-1 and the literature review, the measured variables of four dimensions are selected and classified as Table 3-2. And the relationship between these variables will be described in chapter 4.
Table 3-1: The Main Strategies of Four Dimensions
Dimensions Development Strategy
Financial Increase the R&D contribution and annual output value.
Learning and
Growth Expand the training and recruiting of biotechnology talent.
Internal Processes
1. Strengthen the role of R&D in this industry’s value chain.
2. Focus on the industrial application development of R&D results.
Customer
1. Improve Taiwan’s pharmaceutical legal and regulatory environment.
2. Establish an alliance about drug export to expand domestic and foreign markets
Table 3-2: The Main Variables of Four Dimensions
Dimensions Variable Description Reference
Financial
Sales Value In this study, Sales Value represents the income and profits of Taiwan pharmaceutical industry.
year. Kaplan & Norton (1996b)
Marketing Founding This variable means the founding which is invested in the marketing
every year. Kaplan & Norton (1996b)
Total R&D Funding
It represents that Taiwan pharmaceutical industry invests how much money in R&D. This variable includes corporate, government founding and venture capital.
Hsia (2007); Hung et al., (2009); Lee (2003)
Staff Costs This variable only represents the total R&D staff salary in this study. Chung et al., (2004); Kaplan
& Norton (1996b)
Learning and Growth
Total R&D Staff R&D Staff is an important input factor in R&D activities. The quality of researchers is the key point in the achievement of R&D.
Huang (2002); Hung et al., (2009)
Educational level of employee
The average educational level of staff is related with the accumulation of knowledge and capability. High-tech industry needs professional knowledge and ability, so it is an important factor in this industry.
Hsia (2007); Hung & Huang (2008); Lee (2002); Wang et al., (2004); Wu (1999)
Work Experience Longer work experience should translate in to greater R&D capability.
Hung & Huang (2008); Lee (2002)
The amounts of "Patent" is the lifeblood of the pharmaceutical industry. It can be used Chow & Haddad (1997); De
patents to measure technology competence. Carolis (2003); Kasch &
Dowling (2008); Lee (2003)
The amounts of Publications
This variable is including those papers which are published in Science Citation Index (SCI) or the Science & Technology Policy Research and Information Center (STPI) research projects. Published papers show the result of continually investing in R&D area.
Cheng et al., (2006); Lee (2002); Wu (2004)
Total number of R&D training
Training can improve and strengthen the knowledge and ability. It is one of a channel for learning and growth.
Chow & Haddad (1997); resources can be used. It is one of the important items of estimation in the R&D field. acting not only as the original source of inventive ideas but also as a form of problem-solving which can be called on any point up to
This variable represents the number of projects putting in the “Drug Discovery” which is one of R&D stages in Pharmaceutical industry.
Deng (2007); Kaplan &
Norton (1996b); Lee (2003)
Average Delay Time
This variable is one of productivity evaluation indicators. It represents the delay time from “Drug Discovery” to “New Drug Appear on the Market”.
Deng (2007); Kaplan &
Norton (1996a); Lee (2003);
Wu (1999)
Probability of Success
This variable is one of productivity evaluation indicators. It represents the probability of success from “Drug Discovery” to “New Drug Appear on the Market”.
Deng (2007); Lee (2003); Wu (1999)
Number of Project Successful
This variable represents the number of projects passed from “Drug Discovery” to “New Drug Appear on the Market” in Pharmaceutical industry.
Deng (2007); Kaplan &
Norton (1996b); Lee (2003) New Drug Appear on
the Market
It represents the products which have commercialization. It means the
result in the innovation cycle. Kaplan & Norton (1996b)
Production Quality and Capability
In this study, the author used “Increased Ratio about Equipment investment” and “Increased Ratio about Training Opportunities” to measure the production capacity and quality in operations cycle.
Kaplan & Norton (1996b)
Increased Ratio about Marketing
It is used to measure the “Deliver the Products/Services” in
operations cycle. Kaplan & Norton (1996b)
Customer
Total Amounts of Defective Reaction
Bulletin
It means that during the using process of drugs, there had some side effects which are unexpected or harmful, including significantly less than the expected pharmacological effects. This bulletin resource is come from manufacturers, medical person and the public. This variable represents “the defect rate of product quality”. The defect rate of product quality is related with customer willingness to pay.
Lee (2007); TFDA (2009); Wu (2005)
Total Amounts of Drug Relief Application
It means the number of application cases that in accordance with the instructions of doctors or drugs labeled to use legal drugs, but still occurring serious side effects, such as death, disability or serious
Lee (2007); TFDA (2009); Wu (2005)
illness. In this study, it represents “consumer complaint cases”.
Customer complaint Behavior is related with customer willingness to pay.
Customer Willingness to Pay
This variable includes the effect about positive and negative factors
which affect customers willing to purchase drugs. Chang et al., (2005) Aging index Owing to the serious aging problem, the demand of the therapeutic
and preventive drugs is substantially increased.
Price-Waterhouse-Coopers (2007)
Population The demand of the therapeutic & preventive drugs will increase with the continually growing population.
Price-Waterhouse-Coopers (2007)
The Decline Rate of Drug Price
Because of the financial difficulties, Bureau of National Health Insurance gradually lowered drug prices in recent year. This factor makes the growing strength slow down in this industry.
Chiu (2008)
Domestic Market Demand
In this research, this variable represents “Customer Demand” in
Taiwan. Wu (2005)
Import Value
It represents the domestic market share of foreign competitors. Sales Value is determined by market demand and market share, so this variable will affect the sales value.
Huang (2005)
Source: This Study