Centre for Technology Management

Innovation strategies in the pharmaceutical industry: success factors for pioneers and late entrants

Scott Wilson and David Probert

Centre for Technology Management, Institute for Manufacturing
University of Cambridge, Department of Engineering

Abstract

This paper attempts to illustrate the impact of differing product strategies on product innovation strategies and processes pursued by pharmaceutical companies in the healthcare industry. By recognising a definite split between pioneering product strategies and late entrant product strategies, the product innovation processes of two firms were investigated and compared. The findings from the study are far from conclusive and need to be treated with some caution. However there seems to be some evidence that in defining themselves as pioneers or late entrants, firms (in some cases unknowingly) are also defining the processes they use for innovation. By doing so a set of innovation success factors has emerged for both pioneers and late entrants. These factors have been tentatively grouped together on a framework developed from literature and tested empirically.