Strategy of Innovation’s Management in the Pharmaceutical Industry Holds Intellectual Property


In the management of innovation, intellectual property rights assume the primary role. In this sense, this paper aims to describe, with examples, the various strategies used by the pharmaceutical industry in the preservation of their legitimate rights of the intellectual property system. This is an exploratory study by using documentary research and longitudinal time. Even with the difference in laws between countries, the pharmaceutical anti-competitive practices gain more space in the global economy. For patents become political tools that foster innovation and diffusion of knowledge, it is suggested that revisions in the legislation, homogeneous international regulation and supervision of health authorities ensure quality of product and control of pharmaceutical marketing. This work also addresses political and social considerations on the subject while exploring some suggestions of ideal patent system.

Share and Cite:

Veiga, C. , Veiga, C. , Corso, J. and Catapan, A. (2013) Strategy of Innovation’s Management in the Pharmaceutical Industry Holds Intellectual Property. American Journal of Industrial and Business Management, 3, 565-572. doi: 10.4236/ajibm.2013.36065.

Conflicts of Interest

The authors declare no conflicts of interest.


[1] Y. Baba and J. Walsh “Embeddedness, Social Epistemology and Breakthrough Innovation: The Case of the Development of Stations,” Research Policy, Vol. 39, No. 4, 2010, pp. 511-522.
[2] G. Dosi, L. Marengo and C. Pasquali, “How Much Should Society Fuel the Greed of Innovators? On the Relations between Appropriability, Opportunities and Rates of Innovation,” Research Policy, Vol. 35, No. 8, 2006, pp. 1110-1121.
[3] G. Duflos and F. R. Lichtenberg, “Does Competition Stimulate Drug Utilization? The Impact of Changes in Market Structure on US Drug Prices, Marketing and Utilization,” International Review of Law and Economics, Vol. 32, No. 1, 2012, pp. 95-109.
[4] M. Agrawal and N. Thankkar, “Surviving Patent Expiration: Strategies for Marketing Pharmaceutical Products,” Journal of Product & Brand Management, Vol. 6, No. 5, 1997, pp. 305-314.
[5] S. G. Winter. “Conhecimento e Competencia Como Ativos Estrategicos,” In: D. A. Klein, Ed., A Gestao Estrategica do Capital Intellectual, Qualitymark Editora, Rio de Janeiro, 1998, pp. 251-286.
[6] F. R. Lichtenberg and T. J. PhilipsoNo. “The Dual Effects of Intellectual Property Regulations: Within-and Between-Patent Competition in the US Pharmaceuticals Industry,” NBER Working Paper Series, 2002.
[7] G. Dwivedi, S. Hallihosur and L. RangaNo, “Evergreening: A Deceptive Device in Patent Rights,” Technology in Society, Vol. 32, No. 4, 2010, pp. 324-330.
[8] D. S. Fernandez and J. T. Huie, “Balancing US Patent and FDA Approval Processes: Strategically Optimizing Market Exclusivity,” Drug Discovery Today, Vol. 9, No. 12, 2004, pp. 509-512.
[9] J. C. Gerez, “Indústria Farmacêutica: Histórico, Mercado e Competicao,” Ciência Hoje, Vol. 15, No. 89, 1993. pp. 21-30.
[10] C. Sternitzke, “Knowledge Sources, Patent Protection, and Commercialization of Pharmaceutical Innovations,” Research Policy, Vol. 39, No. 6, 2010, pp. 810-821.
[11] D. M. Carolis, “Competencies and Imitability in the Pharmaceutical Industry: An Analysis of Their Relationship with Firm Performance,” Journal of Management, Vol. 29, No. 1, 2003 pp. 27-50.
[12] S. Gupta, “Diffusing Knowledge-Based Core Competencies for Leveraging Innovation Strategies: Modeling Outsourcing to Knowledge Process Organization (KPOs) in Pharmaceutical Networks,” Industrial Marketing Management, Vol. 38, No. 2, 2009, pp. 219-227.
[13] D. Grau and G. Serbedzjia, “Innovative Strategies for Drug Repurposing,” Drug Discovery & Development, 2007.
[14] J. A. Pearce, “How Companies Can Preserve Market Dominance after Patents Expire,” Long Range Planning, Vol. 39, No. 1, 2006, pp. 71-87.
[15] A. T. Ching, “Consumer Learning and Heterogeneity: Dynamics of Demand for Prescription Drugs after Patent Expiration,” International Journal of Industrial Organization, Vol. 28, No. 6, 2010, pp. 619-638.
[16] J. Hudson, “Generic Take-Up in the Pharmaceutical Market Following Patent Expiry: A Multi-Contry Study,” International Review of Law and Economics, Vol. 20, No. 2, pp. 205-221, 2000.
[17] A. Vieira, “Pfizer Fecha Parceria com a Eurofarma,” Desenvolva, 2010.
[18] Valor Economico, “Teuto Investe para Duplicar a Producao de genérico,” 2011.
[19] M. Scaramuzzo, “Pfizer e Sanofi vao Exportar Genéricos do Brasil para a AL,” Valor Economico, 2012.
[20] S. A. Charles, “Supergenerics: A Better Alternative for Biogenerics,” Drug Discovery Today, Vol. 10, No. 8, 2005, pp. 533-535.
[21] S. Stegemann, “Improved Therapeutic Entities Derived from Known Generics as an Unexplored Source of Innovative Drug Product,” European Journal of Pharmaceutical Science, Vol. 44, No. 4, 2011, pp. 447-454.
[22] A. Schoubben, “Capreomicin Supergenerics for Pulmonary Tuberculosis Treatment: Preparation in Vitro, and in Vivo Characterization,” European Journal of Pharmaceutics and Biopharmaceutics, Vol. 83, No. 3, 2013, pp. 388-395.
[23] D. I. Gorlin, “Staving off Death: A Case Study of the Pharmaceutical Industry’s Strategies to Protect Blockbuster Franchise,” The Food and Drug Law Journal, Vol. 63, 2005, pp. 1-51.
[24] T. X. Witkowski, “Intellectual Property and Other Legal Aspects of Drug Repurposing,” Drug Discovery Today: Therapeutic Strategies, Vol. 8, No. 3-4, pp. 131-137.
[25] M. Angell, “A Verdade Sobre os Laboratorios Farmaceuticos: Como Somos Enganados e o que Podemos Fazer a Respeito,” 3rd Edition, Editora Record, Rio de Janeiro, 2008.
[26] I. Agranat and H. Caner, “Intellectual Property and Chirality of Drugs,” Drug Discovery Today, Vol. 4, No. 7, 1999, pp. 313-321.
[27] H. Caner, “Trends in the Development of Chiral Drugs,” Drug Discovery Today, Vol. 9, No. 3, 2004, pp. 105-110.
[28] I. Agranat and S. R. Wainschtein, “The Strategy of Enantiomer Patents of Drugs,” Drug Discovery Today, Vol. 15, No. 5-6, 2010, pp. 163-170.
[29] B. Cremers and M. Bohm. “Non Erectile Dysfunction Application of Sildenafil,” Herz, Vol. 28, No. 4, 2003, pp. 325-333.
[30] E. R. MacNamara and C. F. Donatucci, “Newer Phosphodiesterase Inhibitors: Comparison with Established Agentes,” Urologic Clinics of North America, Vol. 38, 2011, pp. 155-163.
[31] S. Shibayama, “Effect of Mergers and Acquisitions on Drug Discovery: Perspective from a Case Study of a Japanese Pharmaceutical Company,” Drug Discovery Today, Vol. 13, No. 1-2, 2008, pp. 86-93.
[32] I. Khana, “Drug Discovery in Pharmaceutical Industry: Productivity Challenges and Trends,” Drug Discovery Today, Vol. 17, No. 19-20, 2012, pp. 1088-1102.
[33] IBM Business Consulting Service.
[34] Revista Exame, “Setor Farmaceutico Mantem Ritmo de Fusoes e Aquisicoes,” 2010.
[35] D. Encaoua, D. Guellec and C. Martínez, “Patent Systems for Encouraging Innovation: Lessons from Economic Analysis,” Research Policy, Vol. 35, 2006, pp. 1423-1440.

Copyright © 2024 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.