Table 3.

Overview of innovation strategies

Strategic options	Description	Exclusivity period	Source
Product-line extension	Extensions of existing drug (e.g. reformulations and combination drugs); improvement over the predecessor	Depending on the patentability of the product/3 years of market exclusivity for extensions involving clinical research	Bhat (2005), Dubey and Dubey (2009)
New indications	Finding new potential usage by extending the therapeutic indication of the drug	3 years of market exclusivity	Bhat (2005)
Introduction of follow-on products	Introduction of next-generation drug; demonstration of improved properties	Depending on the patentability of the product	Agrawal and Thakkar (1997)
Rx-to-OTC-switch	Switching a prescription drug to OTC status; expansion of the market	–	Brass (2001)
Business model innovation	Altering the firm’s core logic for creating and capturing value by specifying the value chain	–	Mittra and Tait (2012)