Table 6.
Definitions and measurement of radical innovation used in each paper
| References | Determinants | Direction of relationship with radical drug innovation | Definition of radical innovation | Measurement of radical innovation |
|---|---|---|---|---|
| Achilladelis (1993) | R&D spending | Positive | Based on different scientific principles, technology, or materials which have replaced or competed successfully with existing products | The author assigns certain antibiotic drugs as radical innovation while others are deemed to be incremental innovation. No clear decision or framework for the differentiation |
| Arnold and Troyer (2016) | R&D spending | Positive | No definition | Joint NME and Priority Review count |
| Marketing spending | Negative | |||
| Belderbos et al. (2016) | R&D alliances with universities: direct collaborations for pharmaceutical companies with a high level of scientific absorptive capacity; indirect collaborations for pharmaceutical companies with a low level of scientific absorptive capacity | Positive | No definition | Patent count |
| Cammarano et al. (2017a) | R&D outsourcing | Negative | Technological originality; generates a new combination of technological components | Patent count |
| Purchase of external technology | Positive | |||
| M&As | Negative | |||
| Cammarano et al. (2017b) | R&D outsourcing | Negative | No definition | Patent count |
| Knowledge stock of an organization | Negative | |||
| Cardinal (2001) | Scientific diversity | Positive | No definition | NME count |
| Centralization | Positive | |||
| Formalization | Positive | |||
| Frequency of performance appraisals | Positive | |||
| Goal specificity | Positive | |||
| Rewards/recognition for output | Positive | |||
| Cohen and Caner (2016) | R&D alliance network (heterogeneous knowledge) | Curvilinear | Advance the state of the technology or represent a completely new type of product | NME count |
| Knowledge stock of an organization | Positive | |||
| DiMasi (2000) | Internal R&D | Positive | No definition | NME count |
| Therapeutic area focus | Positive | |||
| Dunlap-Hinkler et al. (2010) | Firm size | Positive | Radical innovations start the cycle of technological change | NME count |
| Prior radical innovations | Positive | |||
| Prior incremental innovations (generics) | Negative | |||
| Joint ventures/strategic alliances | Positive | |||
| Dunlap et al. (2014) | Cross-national knowledge from intra-firm sources | Positive | The degree of novelty or change embedded in the innovation; needs to be new to the market | NME count |
| R&D spending | Positive | |||
| Dunlap et al. (2016) | R&D alliances | Positive | Scientific novelty | Joint NME and Priority Review count |
| M&As | Negative | |||
| Eslaminosratabadi (2018)a | R&D alliances with universities and other biotech firms | Positive | New product that incorporates a substantially different core technology and offers significantly higher benefits to customer | Joint NME and Priority Review count |
| R&D alliances with other, larger pharmaceutical firms | Negative | |||
| Fernald et al. (2017) | M&As of (start-up) biotechs | Negative | No definition | NME count |
| M&As of other, larger pharmaceutical firms | Positive | |||
| R&D alliances with (start-up) biotechs | Positive | |||
| Firm size | Positive | |||
| Jong and Slavova (2014) | Open science strategies (publication in science journals and joint ventures/alliances) | Positive | A genuinely new product | NME count |
| Firm size | Positive | |||
| Firm age | Positive | |||
| Knowledge stock of an organization | Positive | |||
| Kamuriwo et al. (2017) | R&D alliances | Positive | Products that create entirely new markets or radically change existing ones | Patent count |
| Karamanos (2012) | R&D alliances (direct ties) | Curvilinear | The creation of technological knowledge that falls outside the firm’s existing know-how | Patent count |
| R&D alliances (embedded in a dense network) | Curvilinear | |||
| Karamanos (2014) | R&D alliances (firm’s partner’s centrality in the network) | Positive | No definition | Patent count |
| Karamanos (2016) | R&D alliances (firm’s partner’s centrality in the network) | Positive | The creation of technological knowledge that falls outside the firm’s existing know-how | Patent count |
| R&D alliances (indirect ties or structural holes) | Positive | |||
| Firm size | Positive | |||
| Keyrouz (2013)a | Market orientation (customer orientation and technological orientation) | Positive | High level of newness and high level of customer need fulfillment | Joint NME and Priority Review count |
| Malva et al. (2015) | Basic science | Positive | Inventions with a high impact on subsequent inventive activity | Patent count |
| Park and Tzabbar (2016) | Venture capital funding (for early stage R&D ventures) | Positive | Recombination of knowledge components that is new in a given industry | Patent count |
| CEO’s structural power | Positive | |||
| Phene et al. (2006) | Technologically distant knowledge of national origin | Curvilinear | No definition | Patent count |
| Technologically proximate knowledge of international origin | Positive | |||
| Qi Dong et al. (2017) | R&D alliances (with other central organizations in an alliance network) | Curvilinear | Paradigm shifts in technological trajectories; can lead to the creation of new customers and new markets | Patent count |
| Quintana-García and Benavides-Velasco (2011) | R&D alliances (access to complementary technology) | Positive | No definition | NME count |
| Firm size | Positive | |||
| R&D spending | Positive | |||
| Singh and Fleming (2010) | Internal R&D collaboration (team affiliation and organization affiliation vs. being a lone inventor) | Positive | No definition | Patent count |
| Sorescu et al. (2003) | Firm size (sales, assets, profits) | Positive | Novel technology plus substantial customer benefits | Joint NME and Priority Review count |
| Sternitzke (2010) | Basic research | Positive | Novel technology plus substantial customer benefits | Joint NME and Priority Review count |
| Knowledge stock of an organization | Positive | |||
| Supriyadi (2013)a | Firm's resources (e.g., technology and talents) and culture | Positive | No definition | NDA counts |
| Suzuki (2018) | Organizational slack | Positive | Identifying or generating new knowledge that is beyond the scope of current business | NME counts |
| Suzuki and Methe (2014) | Local search (i.e., searching for new knowledge in close distance to the existing knowledge of a firm) | Positive | No definition | NME counts |
| R&D spending | Positive | |||
| R&D alliances (frequency) | Positive | |||
| Tzabbar and Margolis (2017) | Educational heterogeneity of founding team | Positive | No definition | Patent count |
| Founding experience | Positive | |||
| Watts and Hamilton (2013) | Applied science | Positive | No definition | Therapeutic evidence (TE) codes from the FDA’s Orange Book |
| M&As (only for firms dedicated to basic science) | Positive | |||
| Wuyts et al. (2004) | R&D spending | Positive | Different core technology; provide substantially greater customer benefits than previous products in the industry | Joint NME and Priority Review count |
| R&D alliances (repeated partnering) | Positive | |||
| Technological diversity | Positive | |||
| Xu (2015) | Knowledge breadth | Curvilinear | Incorporation of significantly new technology into product offerings; offer substantially improved product benefits to serve customer needs | Joint NME and Priority Review count |
| Xu et al. (2013) | R&D alliances | Negative | No definition | Joint NME and Priority Review count |
| Internal technological knowledge strength | Curvilinear | |||
| Yeoh and Roth (1999) | R&D spending (direct impact) | Negative | No definition | NME count |
| M&D spending (sales force) | Positive | |||
| Zheng and Yang (2015) | R&D alliances (repeated partnering) | Curvilinear | High-impact innovations with the potential to introduce new technological trajectories or paradigm shifts | Patent count |
| Zucker et al. (2002) | R&D alliances (with star scientists at leading universities) | Positive | No definition | Number of research articles written jointly by corporate and star scientists |
aPhD Thesis