Keywords: pharmaceutical industry, biotechnology, innovation, strategic alliances, research and development, collaboration, SMEs
The biotechnology revolution: implications for the pharmaceutical industry
Until recently, many of the larger pharmaceutical companies were exclusively responsible for the discovery of novel treatments through the efforts of their own in-house research. However, the arrival of biotechnology was to change these traditional patterns of innovation. Today, pharmaceutical manufacturers no longer view themselves as the sole innovators in the industry. Rather, they are increasingly relying on small firms for drug discovery, while concentrating on their core competencies for drug development and marketing. The emergence of these smaller firms that comprise the biotech sector has facilitated a radical transformation of many of the long-held business practices of the pharmaceutical majors. This phenomenon is what has now come to be known as the "biotechnology revolution".