Biopharmaceutical entrepreneurship, open innovation, and the knowledge economy

Abstract

This article focuses on the paradigm shift of the global biopharmaceutical sector’s utilization of open innovation models to optimize drug development. Leveraging four exemplars, this review highlights that traditionally propriety, non-collaborative biotechnology and pharmaceutical companies increasingly use principles, processes, and structures of open innovation to increase drug R&D effectiveness and efficiency. We discern three essential elements in the successful creation of open innovation partnerships: (i) culture, (ii) collaborative management skills, and (iii) strategic capability alignment. This analysis provides guidance for business leaders and scholars interested in the managerial and strategic dimensions of applying open innovation to the drug development environment. Theoretically, the article contributes to the growing stream of research integrating the concepts of knowledge economy, open innovation, and Enterprise 2.0. We discuss the specific ways in which open innovation holds potential to improve quality, increase speed, and lower costs and thus yield positive benefits for global health.