Science Business

by Pisano, Gary P.

• ISBN13: 9781591398400
• ISBN10: 1591398401
• Edition: 1st
• Format: Hardcover
• Copyright: 2006-11-30
• Publisher: Harvard Business School Pr

Summary

Why has the biotechnology industry failed to perform up to expectations-despite all its promise? In Science Business, Gary P. Pisano answers this question by providing an incisive critique of the industry. Pisano not only reveals the underlying causes of biotech's problems; he offers the most sophisticated analysis yet on how the industry works. And he provides clear prescriptions for companies, investors, and policymakers seeking ways to improve the industry's performance. According to Pisano, the biotech industry's problems stem from its special character as a science-based business. This character poses three unique business challenges: 1) how to finance highly risky investments under profound uncertainty and long time horizons for R&D, 2) how to learn rapidly enough to keep pace with advances in drug science knowledge, and 3) how to integrate capabilities across a broad spectrum of scientific and technological knowledge bases. The key to fixing the industry? Business models, organizational structures, and financing arrangements that place greater emphasis on integration and long-term learning over shorter-term "monetization" of intellectual property. Pisano maintains that all industry players-biotech firms, investors, universities, pharmaceutical companies, government regulators-can play a role in righting the industry. The payoff? Valuable improvements in health care, and a shinier future for human well-being.

Author Biography

Gary P. Pisano is the Harry E. Figgie, Jr. Professor of Business Administration and Chair of the Technology and Operations Management unit at Harvard Business School.

Table of Contents

Preface	ix
The Science-Based Business	1	(20)
A Novel Experiment
Part I The Science of the Business
Mapping the Scientific Landscape	21	(20)
The Complex Anatomy of Drug R&D	41	(12)
Drug R&D and the Organizational Challenges	53	(26)
Part II The Business of the Science
The Anatomy of a Science-Based Business	79	(32)
The Performance of the Biotech Industry	111	(20)
Promise Versus Reality
The Monetization of Intellectual Property	131	(28)
Part III The Science-Based Enterprise
Organizational Strategies and Business Models	159	(24)
The Path Ahead	183	(22)
Appendix A Biotechnology Companies Used in the Analyses of the Industry	205	(6)
Appendix B List of Pharmaceutical Companies Used in Productivity Analysis	211	(2)
Notes	213	(10)
Index	223	(14)
About the Author	237