Pharmaceutical companies decreased their US market research budgets by an average of 22.7% from 2006 to 2007.

The average US market research budget in 2006 was just higher than $2.5 million, according to the report. In 2007, that figure dropped by $461,923 to slightly more than $2.0 million. Market research spending outside the US, however, increased by an average of 42.9% to $2.9 million in 2007.

Even though 53.8% of companies increased their market research budgets in 2007, the average budget for all participants still dropped in the US. The study also reveals best practices, strategies and resource allocation metrics for top pharmaceutical and biotechnology companies, such as Pfizer, Bristol-Myers Squibb, Eli Lilly and Bayer Schering.

None of the participating companies in Cutting Edge Information's survey decreased their ex-US market research budgets from 2006 to 2007, a stark contrast to US spending. The study found that only 15.4% of participants maintained the same rest-of-world market research budget and a staggering 84.6% of companies increased their budgets.

"There's a shift toward conducting more market research activities in markets outside the US," said Elio Evangelista, research team leader at Cutting Edge Information. "Pharma companies are looking to launch their drugs and establish a firm foothold in Asian and European markets, and they need to conduct extensive research to gather market intelligence."

"Developing Integrated Market Research Functions: Decision Support for 2008" is an extensive guide outlining participating companies' market research structures, budgets, staffing and outsourcing metrics.