Abstract
The pharmaceutical industry is a high-technology industry that requires a combination of in-depth knowledge from various fields. It is characterized by high cost, high risk and a long-term perspective due to the high level of regulation. In addition, it is known that research and development (R&D) productivity is deteriorating in the industry. Under these conditions, the importance of open innovation strategies has been emphasized. Under an open innovation system, it is essential for firms to develop several dynamic capabilities to effectively manage their resources both internally and externally. Using a systematic framework of dynamic capabilities suggested by previous studies, this study focuses on the determinants affecting firms’ desorptive capacities, which are measured as the number of out-licensing deals, as an indicator for the performance of their outbound innovation. For the analysis, negative binomial regression is employed and inventive capacity and connective capacity are selected as the determinants of the licensors’ desorptive capacity. The results of regression analysis reveal that inventive capacity does not have a significant effect on desorptive capacity and that only connective capacity has a significant positive effect on desorptive capacity.
Highlights
The pharmaceutical industry is traditionally known as a knowledge-intensive industry in which various technologies are combined
In order to examine the effect of each explanatory variable in detail, the regression is conducted in three ways; in Model 1, connective capacity is excluded; Model 2 is the result of analysis excluding inventive capacity; and Model 3 is the full model incorporating all variables
The pharmaceutical industry is a high technology industry that requires a combination of in-depth knowledge of various fields and is characterized by high cost, high risk and long-term perspectives due to high regulation
Summary
The pharmaceutical industry is traditionally known as a knowledge-intensive industry in which various technologies are combined It entails astronomical research and development (R&D) costs, and a long-time perspective attributed to the regulatory approval required for the production of new drugs. The extremely technology-driven, risky, costly and long drug development process used to be dominated by large pharmaceutical firms, sometimes referred to as the ‘Blockbuster Model’. This traditional vertical model conducted by the large pharmaceutical firms has become increasingly hard to maintain since the 1980s. The large pharmaceutical firms have been faced with the (1) patent expiration of their main blockbuster drugs, and the overall pharmaceutical industry being in the situation of (2) lowering
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Journal of Open Innovation: Technology, Market, and Complexity
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
