Title: Technology strategies for innovation race: a simulation model for pharmaceutics

Authors: Kalevi Kyläheiko; Ari Jantunen; Kaisu Puumalainen; Pasi Luukka

Addresses: School of Business, Lappeenranta University of Technology, P.O. Box 20, FI 53851 Lappeenranta, Finland ' School of Business, Lappeenranta University of Technology, P.O. Box 20, FI 53851 Lappeenranta, Finland ' School of Business, Lappeenranta University of Technology, P.O. Box 20, FI 53851 Lappeenranta, Finland ' Department of Mathematics and Physics, Lappeenranta University of Technology, P.O. Box 20, FI 53851 Lappeenranta, Finland

Abstract: In this article we will analyze a knowledge-based model of the firm that makes it possible to analyze how the firms can build up their technology strategies to capture profits from innovation race. The importance of different knowledge-based determinants will be analyzed in the context of pharmaceutical industry. We will look at the relevance of different value creating and value protecting determinants of firms and show how different technology strategies (offensive and defensive) affect the net value derived from knowledge assets in different competitive settings. The dynamics behind different strategies will be analyzed using stochastic simulation models.

Keywords: technology strategies; appropriability; innovation race; knowledge-based views; simulation models; pharmaceutics; profits; profit capture; pharmaceutical industry; value creating determinants; value protecting determinants; value creation; value protection; offensive strategies; defensive strategies; net values; knowledge assets; competitive settings; stochastic models; technology intelligence; technology planning.

DOI: 10.1504/IJTIP.2012.048473

International Journal of Technology Intelligence and Planning, 2012 Vol.8 No.2, pp.115 - 136

Published online: 10 Aug 2012 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article