{"title":"Firm-Level Determinants of Breakthrough Innovation: A Systematic Literature Review","authors":"Ingo Stiller","doi":"10.2139/ssrn.3454109","DOIUrl":null,"url":null,"abstract":"The objective of this review was to search the literature for key firm-level determinants of breakthrough innovation in pharmaceutical companies. Understanding these determinants is of utmost importance in the pharmaceutical industry due to the high failure rates of research and development (R&D) projects in pursuit of new pharmaceutical drugs. Following a systematic literature review approach, I reviewed approximately 2,000 peer-reviewed journal articles and identified nine determinants of breakthrough innovation at a firm level. These determinants were related and, thus, grouped into two distinct categories of firm-level determinants of breakthrough innovation in pharmaceutical companies: R&D spend (particularly the investment in basic science) and market dominance. However, the empirical data in support of these determinants are limited and sometimes contradictory. Future research should address these limitations.","PeriodicalId":103805,"journal":{"name":"Innovation & Organizational Behavior eJournal","volume":"16 3 1","pages":"0"},"PeriodicalIF":0.0000,"publicationDate":"2019-09-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Innovation & Organizational Behavior eJournal","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.2139/ssrn.3454109","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"","JCRName":"","Score":null,"Total":0}
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Abstract
The objective of this review was to search the literature for key firm-level determinants of breakthrough innovation in pharmaceutical companies. Understanding these determinants is of utmost importance in the pharmaceutical industry due to the high failure rates of research and development (R&D) projects in pursuit of new pharmaceutical drugs. Following a systematic literature review approach, I reviewed approximately 2,000 peer-reviewed journal articles and identified nine determinants of breakthrough innovation at a firm level. These determinants were related and, thus, grouped into two distinct categories of firm-level determinants of breakthrough innovation in pharmaceutical companies: R&D spend (particularly the investment in basic science) and market dominance. However, the empirical data in support of these determinants are limited and sometimes contradictory. Future research should address these limitations.
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