Business values innovation assessment

After years of internal discussions and smaller investments, the board of a chemical company decided to take a major step in industrial biotech, which out of a number of fields had emerged as the one with the highest innovation potential and a good fit with the company s broader capabilities and position in the value chain. There were many potential entry points and business opportunities, but none had a clear rationale. The company approached the challenge from two sides (Fig. 28.3). It determined its distinctive skills and assets by benchmarking. At the same time, it assessed the relevant opportunities and threats - competitors recent or announced moves, and also the potential for competitors if the company chose not to enter a specific area. It was key to think long-term and broad, and to consider the industry structure ten years out. 

While the book portends to introduce transformative concepts, capable of broadening the technological base of the pharmaceutical industry, we are acutely aware that a sobering note is in order. Wrapping designs are physically sound and seem to withstand the test of academic scrutiny and, yet, ultimately, only clinical trials can fully assess their therapeutic value and safety. In this regard, and from a practical perspective, current business models in the pharmaceutical R D may not be sufficiently resilient to accommodate this type of core innovation. 

Other high-income country initiatives such as the Innovate UK stem cell programme support policy thinking and address regulatory, business development, funding and access to market issues. At the same time, new approaches to health technology assessment constitute what has been colloquially termed the fourth hurdle. Going beyond efficacy, effectiveness and product approval, they cover value assessments and relate... 

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