Continuous Leap of Innovation in Pharmaceutical Industry

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The pharmaceutical industry has seen a continuous leap of innovation from organic chemistry to microbiology and now to genomics. Chemists in the 19th century discovered medicinal benefits of their chemical dyes leading to the development of fever-reducing drugs. Post World War II, pharmaceutical companies delved into microbiology through various unconventional methods such as sending workers down mineshafts or collecting air samples via balloons to find new drugs. Today, genomics is the frontier of innovation in medicine, requiring pioneers to transition through different knowledge disciplines for groundbreaking discoveries.

For more than a century, the pharmaceutical company Roche has been headquartered in Basel, Switzerland. It’s one of more than a dozen pharmaceutical companies that have long been based there.

Howard Yu, Lego Professor of Management and Innovation at IMD Business School in Switzerland, discusses how this industrial cluster is a unique example of enduring competitive advantage. He explains how these companies offer a counter-narrative to the pessimistic view that you can’t stay ahead of the competition for long.

In this episode, you'll learn how these historic companies began as makers of chemical dyes and later evolved into microbiology. You’ll also learn how to repackage your company’s existing knowledge to pioneer new products and services. And you’ll learn why persistence and experimentation over the long term are prerequisites for innovation.

Key episode topics include: strategy, innovation, competitive strategy, pharmaceutical industry, competitive strategy.

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