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Essay from the year 2006 in the subject Pharmacology, grade: 71 % - A, University of Sunderland (Faculty of Business and Law), course: International Trade and Finance, language: English, abstract: This paper will firstly analyse the importance of R&D, its global dimension and its future trends. Furthermore, the emphasis by nations put on investment in knowledge will be explained. The second part then outlines the main economic theories concerning innovation and knowledge creation. Finally, Germany and its pharmaceutical industry will be taken as an example to illustrate the dimensions of investment in R&D and its outcomes.