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The pharmaceutical industry is opening its R&D boundaries

  • The reduced research and development (R&D) efficiency, strong competition from generics, increased cost pressure from payers, and an increased biological complexity of new target indications have resulted in a rethinking and a change from a traditional and more closed R&D model in the pharmaceutical industry toward the new paradigm of open innovation. In the past years, pharmaceutical companies have broadened their external networks toward research collaborations with academic institutes, technology providers, or codevelopment partners. To fulfill the demand to reduce timelines and costs, research-based pharmaceutical companies started to outsource R&D activities. In addition, internal R&D processes were adjusted to the more open R&D model and new processes such as alliance management were established. The corporate frontier of pharmaceutical companies became permeable and more open. As a result, the focus of pharmaceutical R&D expanded from a purely internal toward a mixed internal and external model. Today, the U.S. pharmaceutical company Eli Lilly may have established the most open model toward external innovation, as it has integrated its innovation processes with its business model. Other companies are following this more open R&D model with newer concepts such as new frontier sciences, drug discovery alliances, private public partnerships, innovation incubators, virtual R&D, crowdsourcing, open source innovation, and innovation camps.

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Author of HS ReutlingenSchuhmacher, Alexander
Erschienen in:Value creation in the pharmaceutical industry : the critical path to innovation
Place of publication:Weinheim
Editor:Alexander Schuhmacher
Document Type:Book chapter
Publication year:2016
Tag:external innovation; open R&D frontiers; open R&D model; open innovation
Page Number:26
First Page:335
Last Page:360
PPN:Im Katalog der Hochschule Reutlingen ansehen
DDC classes:330 Wirtschaft
540 Chemie
Open access?:Nein
Licence (German):License Logo  In Copyright - Urheberrechtlich geschützt