EIU survey: Top innovators in life sciences twice as likely to generate new products

By eGovInnovation Editors | Jul 27, 2011

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A recent survey conducted by the Economist Intelligence Unit (EIU) showed that companies that describe their innovation strategies as very effective produce almost twice as many new products or NMEs (new molecular entities) than other companies.

On average, these innovators produce on average 7.2 NMEs per year compared with 3.8 for all other companies. However, only 47 percent of life sciences companies have R&D models that meet their needs, according to the innovation imperative in biopharma, a new report written by the EIU and sponsored by Quintiles.

This points to a lack of confidence among life sciences executives with regard to the quality of their existing innovation programs. There is reason for optimism, though. Changing the innovation process is a leading priority for only 54 percent of the companies surveyed. Moreover, the most successful innovators recognize the importance of looking outside the R&D function and beyond their firm's walls for collaboration.

"These companies are also creating a propitious innovation environment that encourages thinking and makes the most of existing data and intellectual property," the report said.

The report is based on a global survey, conducted in April 2011, of 282 senior executives from the life sciences industry, including biopharma and biotech companies, medical device manufacturers and service providers such as CROs, as well as in-depth interviews with industry executives and experts. It explores the difficulties companies face with their innovation programs, and the steps they are taking to reinvigorate innovation efforts.

Other key findings of the report include the fact that executives recognize the need for a more open innovation process and that Internal R&D is still the leading source for innovation, although companies often do not make the most of their resources.

"Culture is the biggest impediment to improved innovation in 43 percent of the less effective companies, compared with just 10 percent of those that are very effective. The most frequently cited barriers to improving innovation strategies overall in the industry are cost, time in product development and regulatory restrictions. But for the companies with the worst innovation record, culture is the primary barrier to a better performance. This is in their power to change," the report said.