The Open Innovation Challenge: How to Partner for Innovation

Abstract

The business models of major pharmaceutical companies increasingly include external R{\&}D elements that range from the acquisition of drug projects, traditional collaborations with academic institutions, multi-year research partnerships, crowdsourcing, centers for R{\&}D excellence, open source innovation, virtual R{\&}D and public private partnerships. Commonly known as ``open innovation'', these new virtual forms of organizing innovation processes challenge the traditional, established inhouse-only R{\&}D paradigm. An outlook of the rise of corporate venture funds in the pharma industry illustrates how important the management and valuation of intellectual property is in the life science industry.