Strategic management of innovation risk in the biopharmaceutical industry: a UK perspective. (1st January 1999)

• Record Type: Journal Article
• Authors: Chandrasekar, C.R.; Helliar, C.V.; Lonie, A.A.; Nixon, W.A.; Power, D.M.
• Is Part Of: International journal of healthcare technology and management. Volume 1:Number 1/2(1999)
• Page Start: 62
• Page End: 76
• Publication Date: 1999-01-01
• Subjects: biopharmaceutical industry -- innovation risk -- strategic management; Medical technology -- Periodicals; Medical technology -- Management -- Periodicals; 610.28
• Languages: English
• ISSNs: 1368-2156

Abstract

This paper explores whether that part of the strategic management literature that is concerned with innovation risk may help our understanding of changes in the UK biopharmaceutical industry. In particular, the changes in this industry are analysed to determine whether companies now take account of the real options embedded in their drug development process and include these options in their evaluation of research and development expenditures. In addition, the paper considers whether advances in the management of risks associated with new technology are being applied in the biopharmaceutical sector. A pilot case study of one firm in this industry is examined and the results of three interviews discussed. The principal finding of this study is that a firm which has adopted leading-edge techniques advocated in the recent literature on the subject has achieved remarkable technical and economic success.