The Impact of Failure and Success Experience on Drug Development

Garzon-Vico, Antonio; Rosier, Jan; Gibbons, Pat; McNamara, Peter

doi:10.1111/jpim.12514

Cited by 14 publications

(17 citation statements)

References 95 publications

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“…The new approval represents a firm's new high-tech product development and innovation outcomes. Prior studies in the healthcare industry have often adopted this measurement as a proxy for firms' innovation outcomes (De Carolis, 2003;Garz on-Vico et al, 2020). We restricted the data to Classes 3 and 4 implantable medical device cases because they involve higher risk factors in patient treatment that require clinical and technological data to prove its safety.…”

Section: Dependent Variablementioning

confidence: 99%

Geographic proximity to socially dominant partners and firms' innovation outcomes: Empirical evidence from the medical device industry

Park¹,

Choi

2023

Manage Decis Econ

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Socially dominant partners offer key innovation resources as actors with socially legitimate power, and firms can utilise the geographic proximity to such partners to increase partnership benefits. We examine the impact of geographic proximity to socially dominant partners on firms' innovation outcomes when firms collaborate with partners under varying partnership conditions (i.e., partners' capabilities, partner portfolio size and the presence of local intermediaries) using the Korean implantable medical device industry as a case study. The study found that firms' innovation outcomes increase when teaming up with nearby socially dominant partners if firms collaborate with strongly capable partners and many of them. In contrast, if firms collaborate with less‐capable partners and only a few of them, firms' innovation outcomes increase when partnering with distant socially dominant partners. Moreover, such outcomes also increase when they collaborate with distant socially dominant partners and intermediaries are present in the firms' regions. The study offers theoretical contributions to the extant literature on power imbalance and economic geography regarding inter‐organisational relations.

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Section: Dependent Variablementioning

confidence: 99%

Geographic proximity to socially dominant partners and firms' innovation outcomes: Empirical evidence from the medical device industry

Park¹,

Choi

2023

Manage Decis Econ

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“…Pharmaceutical product development is characterized by little advanced knowledge about the molecular drug properties necessary to achieve the desired physiological effect (Taalbi, 2017). High coupling of properties not only within the drug but also in different molecular pathways triggering physiological drug response makes the development of new active ingredients, in many cases, a more or less random search with limited probability of success (Garzón-Vico et al, 2020;Saint-Hilary et al, 2018). Furthermore, a unique feature of drug innovation is the mandatory combination of a tangible item and a precise labelling describing the desired physiological effect, both essential to the product and subject to rigorous clinical testing before market approval and product launch (Lietzan, 2018).…”

Section: Literature Reviewmentioning

confidence: 99%

Innovation Options and Profitability of Pharmaceutical Brand Manufacturers

Riedel¹,

Špacek²

2022

IJTech

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Much research exists covering clinical development success rates, development costs of new drugs, and market launch impact on stock market valuation of companies, but little systematic work has been done to establish the impact of research input on new product launches and, in turn, their impact on profitability of drug manufacturers. This article investigates these relations using data from the world's largest pharmaceutical brand manufacturers and their product launches in the US over a period of more than 25 years. The objective is to determine the impact of innovation intensity on innovation output intensity and of innovation output intensity on profitability. It is shown that there is a complete lack of evidence that launches of New Molecular Entities (NMEs) necessarily lead to higher profitability, suggesting that many launches of NMEs are not particularly successful from an economic point of view. Furthermore, it was found that intangible knowledge assets acquired by company mergers and acquisitions do often not live up to their valuation. This leads to the conclusion that such intangible assets seem to be overpriced on average. The more and more frequently used strategy of launching new drugs without NMEs like combination drugs or extension of indications increased short-term profitability making this a valid approach to avoid setbacks when patent protection of blockbuster drugs expires.

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“…Nevertheless, existing studies have mostly concentrated on the small group of top managers and have regarded managers' attention as their unique property, overlooking the necessity of spreading their attention throughout the firm and shaping the attention of subordinates. This treatment is reasonable because top managers, or key decision-makers, act as the point at which information converges and is interpreted for organizational moves in product innovation (Garzon-Vico et al , 2020; Kammerlander and Ganter, 2015; Kyriakopoulos et al , 2016). However, apart from top managers' own attention allocation and decision-making, their subordinates' attention, especially the extent to which subordinates share the same pattern of attention with top managers, matters in tension management (Joseph and Ocasio, 2012).…”

Section: Theoretical Background and Literature Reviewmentioning

confidence: 99%

Top managers' communication efforts as response to tensions in product innovation: an attention-based view

Fagerlin

Wang

2021

BJM

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PurposeThe purpose of this study is to map different kinds of tensions in product innovation and investigate how top managers use communication to shape subordinates' attention and thereby respond to these tensions.Design/methodology/approachThis study adopted an embedded case study of four innovation centers within a Nordic multinational firm.FindingsThis study identifies three kinds of tensions that reside in product innovation, namely dilemma, paradox and trade-off. Further, this study reveals how joint attention (among top managers and subordinates) as a response to tensions can be achieved through different aggregates of top managers' communication efforts.Originality/valueIn opening the black box of tensions in product innovation and identifying multiple tensions, this study contributes to advancing the understanding of the attention-based view. Different from previous studies that simply consider communication as channels for information processing, the findings indicate that the contents and practices of communication can help top managers to shape subordinates' attention and thereby respond to tensions. This study also extends the research focus of attention from top managers to the whole organization, by revealing the importance of building a joint pattern of attention among top managers and subordinates.

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The Impact of Failure and Success Experience on Drug Development

Cited by 14 publications

References 95 publications

Geographic proximity to socially dominant partners and firms' innovation outcomes: Empirical evidence from the medical device industry

Geographic proximity to socially dominant partners and firms' innovation outcomes: Empirical evidence from the medical device industry

Innovation Options and Profitability of Pharmaceutical Brand Manufacturers

Top managers' communication efforts as response to tensions in product innovation: an attention-based view

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