Now showing 1 - 10 of 14
  • Publication
    Analysis of pharma R&D productivitya new perspective needed
    ( 2023-08-07) ;
    Hinder, Markus
    ;
    Von Stegmann Und Stein, Alexander
    ;
    Hartl, Dominik
    ;
    R&D productivity continues to be the industry's grand challenge. We analyzed the R&D input, output, and outcome of 16 leading research-based pharmaceutical companies over 20 years (2001-2020). Our analysis shows that pharma companies increased their R&D spending at a compound annual growth rate of 6% (2001-2020) to an average R&D expenditure per company of $6.7 billion (2020). The companies in our investigation launched 251 new drugs representing 46% of all CDER-related FDA approvals in the past 20 years. The average R&D efficiency of big pharma was $6.16 billion total R&D expenditures per new drug. Almost half of the leading companies needed to compensate for their negative R&D productivity through mergers and acquisitions.
    Type:
    Journal:
    Volume:
  • Publication
    How do foreign R&D units in China manage their Chinese R&D staff? An empirical exploration
    (Inderscience Enterprises Ltd., 2011-11-19) ;
    Whereas extant literature has explored the question of why foreign R&D is present in China, we still know almost nothing about how these R&D operations are managed. This applies specifically to the management of Chinese R&D staff who conventionally are not known for their respect of foreign firms' intellectual property rights (IPR). However, foreign R&D units in China are likely to have developed management techniques to deal with such problems. In this paper, we engage in qualitative and quantitative exploration of how foreign R&D units in China manage their Chinese R&D staff. For exploration we develop a conceptual framework on the basis of agency theory and the theory of trusted relationships. Our findings show that those R&D units that have developed adequate measures to manage their Chinese R&D staff have succeeded in making Chinese employees loyal to the R&D unit. These results have important implications for both practitioners and future empirical research.
    Type:
    Journal:
    Volume:
    Issue:
    Scopus© Citations 2
  • Publication
    How managers protect the intellectual property rights in China using de facto strategies
    (Wiley-Blackwell, 2009-03-01) ;
    Beckenbauer, Angela
    ;
    Foreign firms trying to protect their intellectual property rights (IPRs) in emerging economies are suffering real pressures because these economies usually offer little or no enforcement of IPR. Foreign firms therefore have to resort to approaches unlike those they use in developed countries. This paper explores what managers of foreign firms in China have already tried in their efforts to achieve effective IPR protection - specifically, they have crafted de facto strategies that can protect IPR without using China's legal system or engaging in lawsuits against imitators. These strategies work, and this paper explains how and why, thus offering a potential template for IPR protection in other economies with weak appropriability systems.
    Type:
    Journal:
    Volume:
    Issue:
    Scopus© Citations 60
  • Publication
    Determinants and archetype users of open innovation
    (Wiley-Blackwell, 2009-09-01) ;
    Extant research on open innovation (OI) offers no systematic insight of how and why firms differ regarding the extent to which they conduct OI activities. Whereas past theoretical contributions have focused on explaining the externalisation of R&D activities as a result of firm-external factors, we focus on explaining this externalisation as a result of firm-internal weaknesses, specifically, impediments to innovation. Using the exploration-exploitation dichotomy as our theoretical framework, we develop hypotheses on how impediments to innovation influence the breadth and depth of OI. We then test these hypotheses by using an exceptionally large and detailed data set to estimate population-averaged panel models. Our results provide support for most of the hypothesised relationships. Further, they allow to identify four ‘archetypes' of firms that differ significantly regarding the breadth and depth of OI and the importance of impediments. Finally, we discuss the significance of these findings for both academics and managers.
    Type:
    Journal:
    Volume:
    Issue:
    Scopus© Citations 270
  • Publication
    International Innovation and Strategic Initiatives: A Research Agenda
    Despite the argument that to leverage the expertise of foreign subsidiaries to the global firm is beneficial to the whole firm's competitive advantage, in the case of international innova-tion, such leverage does hardly take place. We investigate into this paradox, applying re-search on strategic initiatives to the context of international R&D. Developing a conceptual model on the basis of communication psychology, we analyse how the innovatory expertise of R&D subsidiaries can be leveraged to the global firm. Thus, we determine six elements the greater exploration of which can lead to a deeper understanding of how the innovatory exper-tise of a foreign R&D subsidiary may be leveraged to the global firm.
    Type:
    Journal:
    Volume:
    Issue:
    Scopus© Citations 9
  • Publication
    Why do 'transnational' approaches to international innovation fail?
    The 'transnational corporation' paradigm is increasingly at odds with empirical findings on international innovation strategy. Analysing a longitudinal case study, we show that the firm's international R&D subsidiaries can be a powerful force that can shape strategy even more than headquarters can. From a literature review that identifies factors and mechanisms by which the firm's periphery is likely to exert this influence, we explore these factors and mechanisms by applying them to our case. Our findings show that international innovation strategies are unlikely to succeed if international R&D subsidiaries use their capabilities and market power to oppose the implementation of this strategy.
    Type:
    Journal:
    Volume:
    Issue:
    Scopus© Citations 4
  • Publication
    The Internationalisation of R&D in Swiss and German Born Globals: Survey and Case Study Evidence
    (InderScience, 2007-01-11) ;
    While IE literature neglects international innovative activities of born globals (BGs), literature on international innovation management focusses on large firms only. We investigate into this gap, proposing a framework to understand where and why BGs engage in such activities. We operationalise and test this framework with both quantitative and qualitative data. Focussing on the Chinese business environment, and resorting to an organisational learning and competitive advantage perspective, we show that the basic motivation for the conduct of international innovatory activities is independent of firm size yet particularly attractive for BGs to generate and sustain competitive advantage on an international basis.
    Type:
    Journal:
    Volume:
    Issue:
    Scopus© Citations 12
  • Publication
    Some animals are more equal than others: What makes strategic initiatives survive the firm's internal selection environment?
    (Inderscience, 2009-10-13) ;
    Floyd, Steven
    ;
    In this paper we use an intraorganisational ecology perspective to build a theory of the antecedents of initiative selection. Thus, we wish to explain what it is about initiatives that facilitates positive internal selection. We hypothesise several initiative characteristics that may more or less favourably interact with the firm's internal selection environment and which may thus influence initiative selection. We test these hypotheses using data on 1,116 initiatives we collected from the global R&D organisation of a multinational firm. Our findings show that initiative survival is positively influenced by the sponsoring unit's geographical closeness to corporate headquarters, by the past success record of the manager responsible for the initiative (i.e., the number of already recognised initiatives championed by that manager). In contrast, initiatives that entail project complexity when implemented and initiatives that propose exploratory rather than exploitative innovation are less likely to survive than others. Past success is also found to positively condition the negative influence of initiative complexity and exploratory content on survival. Finally, the theoretical implications of these findings are discussed.
  • Publication
    What makes strategic initiatives survive the firm's internal selection environment?
    (Inderscience, 2009-08-06) ;
    Floyd, Steven
    ;
    In this paper we use an intraorganisational ecology perspective to build a theory of the antecedents of initiative selection. Thus, we wish to explain what it is about initiatives that facilitates positive internal selection. We hypothesise several initiative characteristics that may more or less favourably interact with the firm's internal selection environment and which may thus influence initiative selection. We test these hypotheses using data on 1,116 initiatives we collected from the global R&D organisation of a multinational firm. Our findings show that initiative survival is positively influenced by the sponsoring unit's geographical closeness to corporate headquarters, by the past success record of the manager responsible for the initiative (i.e., the number of already recognised initiatives championed by that manager). In contrast, initiatives that entail project complexity when implemented and initiatives that propose exploratory rather than exploitative innovation are less likely to survive than others. Past success is also found to positively condition the negative influence of initiative complexity and exploratory content on survival. Finally, the theoretical implications of these findings are discussed.
  • Publication
    Determinants of initiative survival in multinational companies
    (Academy of International Business, 2008-06-30) ;
    This paper examines why subsidiary initiatives differ with respect to their probability of survival and identifies initiative-related factors which cause this difference. We thus intends to answer the research question: What determines the probability of survival of an initiative sent by a foreign R&D subsidiary? We develop six hypotheses which describe initiative characteristics upon which the survival or failure of a subsidiary initiative may depend. We then test these hypotheses using a sample of 1,116 subsidiary initiatives we collected from the global R&D organisation of a Swiss MNC. We extracted these initiative data directly from the firm's initiative database. This research setting allowed us to collect unprecedented data on subsidiary initiatives. The findings show that initiative survival is positively influenced by social and geographical closeness of the sending R&D subsidiary to headquarters, by the initiative's alignment with the firm's core areas of activity, and by the manager's past success record, i.e. the number of already recognised initiatives sent by that manager. Moreover, initiatives that propose exploitative innovation are more likely to survive than initiatives that propose exploratory innovation. However, inter-subsidiary collaboration is found to have no significant influence on initiative survival.