Factors Affecting Innovation Performance in Establishing a Generic Plan in the Pharmaceutical Industry

Abstract

Background: The pharmaceutical industry has a significant impact on the promotion of health and safety indicators in society. In this knowledge-based industry, the development of companies in complex environments is a function of innovative research, investment, and government regulation to maintain and survive. Given the technical knowledge and specific supportive laws (e.g., patents), being active in such an industry is one of the important criteria in developing countries. Therefore, the generic plan was implemented in Iran with the prospect of taking practical steps toward achieving drug self-sufficiency and acquiring the rank of manufactured pharmaceutical raw materials and branded drugs. Objectives: This study, therefore, aimed to investigate factors affecting innovation performance in establishing a generic plan in the pharmaceutical industry of developing countries. Methods: The statistical population in this descriptive survey consisted of PhD experts involved in the Iranian pharmaceutical industry. To this end, 42 standard questionnaires were distributed based on the conceptual model of the research. Next, the effects of the research variables were analyzed using partial least squares (PLS) structural equations. Results: According to the results, research and development (R&D), product innovation, process innovation, and organization size significantly positively affected innovation performance. In comparison, knowledge management did not substantially affect innovation performance in the Iranian pharmaceutical industry. Conclusions: Due to the introspective developmental approach and the lack of effective communication, a major failure of the generic plan is witnessed within the pharmaceutical industry.