Comparative Growth: Chemical, Pharmaceutical, and Tech Industries
October 28, 2024•323 words
The chemical and pharmaceutical industries are similar to the tech industry—not so much in when they were formed, but in how they were developed. Chemical and pharmaceutical companies are older and experienced significant growth during the expansion of railroads, canal shipping, and road networks. This growth is particularly evident in Europe, especially in areas like Switzerland (Basel) and Germany (Lörrach) along the Rhine, which witnessed the blossoming of these industries【1】【2】.
During the 1930s and 1940s, the chemical industry was of great importance, especially to the war effort, but it was also negatively affected by the conflicts. The key to their growth was learning, which also served as a barrier to entry. As long as there were new scientific discoveries, there was incredible growth. However, once most of the scientific learning was complete, the relevance of the chemical industry diminished. The pharmaceutical industry, on the other hand, continues to evolve and will do so for a long time【3】.
The journey of the tech industry is similar, but this sector benefited from nearby universities and medium to large companies that not only supplied technologies but also collaborated with these tech firms【4】. While learning has always been critical for the tech industry, the barrier to entry was largely defined by the funding available to early starters, leading to the creation of massive tech companies. Examples include IBM, Hitachi, Sharp, Sony, Siemens, and Olivetti. IBM, for instance, remains a massive company, with all PCs being based on the IBM model. As long as learning continues, it will serve as a barrier to entry for competitors【5】.
References:
- Basel: Historical Overview of the Chemical Industry. (n.d.). Retrieved from Basel History
- Lörrach: Industrial Development and Chemical Companies. (n.d.). Retrieved from Lörrach Insights
- Pharmaceutical Industry Growth and Research. (2020). Retrieved from Pharmaceutical Journal
- University-Industry Collaboration in Technology Development. (2018). Retrieved from Tech Development Journal
- IBM's Influence on Personal Computing. (2021). Retrieved from IBM History