Implementing open innovation in a closed biopharmaceutical industry

Abstract

Over the last decade, biopharmaceuticals’ research, development, production, and sale have involved high risks and costs for companies. Hence companies have moved toward reaping the benefits of open innovation models. Open innovation is a paradigm that forces the company to use internal and external ideas to accelerate and upgrade its technology and product innovation. This study attempts to identify and explain the open innovation model in the biopharmaceutical industry by studying the successful experiences of two prominent Iranian companies. Also, 22 companies were identified and 19 questionnaires were completed finally. The results of this study showed that the value chain in this industry consists of four major links (including research/discovery, development, production, and sales) and nine sub-links. Based on this, the conceptual model of open innovation in the value chain of Iran's biopharmaceutical industry is drawn with emphasis on four main actors including foreign patent companies, accelerators, large bio-companies, and distribution companies. Meanwhile, despite numerous problems, this industry has been able to move in the direction of open innovation.