Innovations and competitive advantage in pharmaceutical industry in the republic of Croatia

Abstract

Growing competition and market dynamics are some of the main features of modern economics so resources such as knowledge and human capital are increasingly emerging. The main aim of this paper is to examine the effects and consequences of innovations in pharmaceutical companies in Croatia, their advantages and disadvantages, the importance of innovation as key drivers of the business, problems they encounter when introducing innovations regarding acceptance and adaptation to new changes in the company. For the purpose of data collection, interviews were conducted with representatives of companies that are performing leading functions and therefore they provided insight into the main differences that make these companies stand out among the competition as well as the characteristics of those innovations that make them unique on the market. Interviews were conducted with a small number of companies, which is why generalization can result in a high degree of bias. Nevertheless, insight has been provided into the correlation regarding investment, innovation, and the benefits they provide for the employees, industry, and society. The differences found can serve as a basis for further research and improvement of the current practice within the industry.