The need for strong "market research" or competitive analysis is no longer limited to strategic or market planning functions within a company. Research and development, one of the most essential determinants of long-term success in the pharmaceutical industry, is increasingly in need of effective inputs on competitors and markets. As the technological choices broaden and research costs continue to escalate, R&D managers must make difficult decisions regarding the allocation of R&D resources among projects, require inputs of greater magnitude and sophistication than ever before. For individual pharmaceutical firms to compete successfully over the decades ahead, careful management of R&D today, based on accurate, insightful competitive inputs, will be increasingly important. The research and development department represents a key user of competitive analysis and other "market research" in the future.