Technological area experience, experience diversity and innovation

ABSTRACT

One conclusion from the knowledge-based view is that firms develop knowledge from experience. This paper examines the conditions under which firms’ R&D experiences might have stronger or weaker effects on innovation capabilities. We posit that any potential benefit depends on the nature of this experience. In particular, we look at how technological area experience and experience diversity affects innovation capabilities. We further propose that, in order to leverage their experience, firms need to consider how the interactions of technological area experience and experience diversity affect performance. To test this model, we draw on a data set of 3034 drug development projects undertaken by 30 large pharmaceutical companies between 1980 and 2008.

KEYWORDS:

• Experience diversity
• innovation
• organisational learning
• pharmaceutical
• technological area experience

Notes on contributors

Antonio Garzón-Vico holds a Ph.D. in Management and an Mlitt in Philosophy from University College Dublin and a Degree in Philosophy from ‘Universidad de Granada’. Antonio is a postdoc researcher in the Chair of Business of Biotech in University College Dublin. During his Ph.D. studies Antonio obtained the Best Paper Award from the Academy of Management Conference in 2012, published academic articles in peer reviewed journals and presented at various international conferences. While completing his Ph.D. Antonio also worked as Programme Manager in the Overseas Programmes in UCD School of Business. His current research interests revolve around organisational learning (learning from failure and success) and CEO’s role in innovation in the Biotech Industry.

Professor Patrick Gibbons was appointed Jefferson Smurfit Professor of Strategic Management in 2003. He graduated with a Ph.D. in Strategic Planning and Policy from the University of Pittsburgh. Prior educational qualifications at Bachelor’s and Master’s levels were gained at UCD. Before entering academia, he worked in a number of financial and corporate strategy roles with KPMG, Jefferson Smurfit Group, The Investment Bank of Ireland and An Post (The Irish Post Office). He also held the position of Vice President of Staff and Administrative Systems at UCD. His previous academic positions were held at the University of Pittsburgh, Nanyang University, Singapore and the Pennsylvania State University. His current research interests revolve around control practices of MNCs, the impact of strategic planning systems on organisational behaviour and performance, and the application of social theory to strategic process research.

Peter Mc Namara is the Professor of Management at Maynooth University (National University of Ireland Maynooth) and Head of the School of Business. He is currently the Program Chair of the Management Education and Development division of the Academy of Management (the AOM being an academic management professional organisation of circa 18,000 members). His previous academic appointments include being a tenured senior lecturer at University College Dublin, Michael Smurfit Graduate School of Business, and a Research Fellow at the Cass Business School, City University, London. Peter’s research lies at the intersection of strategy, innovation and entrepreneurship. His work focuses primarily on two areas. First, he explores the process and performance consequences of collaboration within and between organisations. Second, he explores the process and performance consequences of innovation in terms of science, knowledge work, and business processes. His work focuses on strategic issues relating to business model design and innovation; capturing financial value from innovation and R&D; inter-organisational collaboration processes and performance; and the micro foundations of competitive advantage.

Professor Rosier holds both a Ph.D. in Pharmaceutical Sciences (Ghent University, Belgium) and a Ph.D. in Management (Cranfield School of Management, UK). He was a Fulbright Scholar at the Harvard School of Public Health and was awarded a NATO research fellowship for research at MIT. As vice president pharmaceutical drug development at Johnson & Johnson he was instrumental in the development of TIBOZOLE®, LIVOSTIN®, PREPULSID®, SPORANOX®, RISPERDAL® and ERGAMISOL® and was awarded the Johnson & Johnson Leadership Award for outstanding and exceptional contribution to the development of PREZISTA® and INTELENCE® for the treatment of AIDS. In 2009, he became Chief Executive Officer of FORMAC Pharmaceuticals NV, a high technology drug delivery spin-off from the University of Leuven that uses silica-based technology to increase the performance of drugs. Jan has extensive experience in attracting venture capital for high-risk academic spin-off biotech firms. His career has continuously taken place at the interface between university and industry. During his stay in industry he was engaged in academic biomedical research which resulted in scientific papers published in e.g. the International Journal of Pharmaceutics, European Journal of Biopharmaceutics, Electrophoresis, Journal of Chromatography Biomedical Applications, Nature, etc. Since 2008, he teaches new drug development at the University of Leuven as a visiting professor. He also researches innovation in biotech firms as a Visiting Fellow at the Cranfield School of Management (UK). Jan is author of Global New Drug Development – An Introduction (Wiley-Blackwell) and is currently writing his new book on the business of biotechnology. He is also a member of the Advisory Board of Incentives for Global Health's Health Impact Fund (healthimpactfund.org).