The generic pharmaceutical industry: moving beyond incremental innovation towards re-innovation

Fereshteh Barei, Claude Le Pen and Steven Simoens
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Fereshteh Barei: LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique
Claude Le Pen: LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique
Steven Simoens: UCL - Université Catholique de Louvain = Catholic University of Louvain

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Abstract: Background: Due to the declining innovativeness of the classic R & D model in the original pharmaceutical industry, the generic pharmaceutical industry is aiming to become an innovation generator itself. Objective: The objective of this article is to gain insight into the re-innovation model in some of the innovative generic pharmaceutical firms. To this effect, we show how some of the generic pharmaceutical firms attempt to achieve competitive advantages either by improving existing product attributes or by replacing new components, reshaping their configuration, and using new technology platforms to produce new innovative products. Methods: We used a qualitative method to examine re-innovation at several levels within these companies, in their management systems, business models and product portfolios. The research was conducted by a series of semi-structured interviews with chief executive officers (CEOs), consultants, researchers, patent attorneys, pharmacists and medics in different countries. Results: Those generic pharmaceutical firms that implement new competitive strategies have integrated re-innovation design into their product portfolio to provide more personalized, cost-effective products to meet the healthcare systems', policymakers' and patients' demand for high quality accessible treatments. This re-orientation hopes to better face the changing competition challenges in both mature and developing markets. Conclusions: A new approach to innovativeness together with a value proposition strategy aims to deliver high quality products to patients.

Keywords: Competition strategy; product portfolio; re-innovation; super generics; technology platforms (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (1)

Published in GaBI Journal, 2013, 2 (1), ⟨10.5639/gabij.2013.0201.011⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01507535

DOI: 10.5639/gabij.2013.0201.011

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