Biotech and pharmaceutical companies are struggling for drug time line and cost cutting. For opening the door of innovation, companies need to come in relationship with other organizations to share with innovative idea and expertise.
In this research work, I explore the concept of open innovation in pharmaceutical industry. Drug development goes through complex processes like drug discovery, clinical trials phases and post-marketing surveillance. For being these processes, they need to do huge investment in R & D projects. Thus, for reducing R & D cost along with product lifecycle, pharmaceutical and biotech companies need to develop an external network with different partners like contract research organizations (CROs) and universities by using both spin-in (outside in) and spin-off (inside out) open innovation. Here, I use an example of company L (pharma) and QPS (CRO) to demonstrate the processes and benefits of open innovation. Furthermore, pharma companies enter into a symbiotic relationship with biotech firms to exchange technologies and knowledge by exploring their innovation processes. This thesis also sheds light on how open innovation benefits to the pharma L and QPS.

CONTENTS
ABSTRACT ii
ACKNOWLEDGEMENT iii
LIST OF ABBREVIATION iv
CONTENTS v
LIST OF FIGURES vii
LIST OF TABLES viii
CHAPTER 1 INTRODUCTION 1
1.1 Research Motivation 2
CHAPTER 2 LITERATURE REVIEW 3
2.1 Open Innovation 3
2.2 Triggers of Open Innovation (Causes) 4
2.3 Closed Innovation Vs Open Innovation 5
2.3.1 Closed Innovation 5
2.3.2 Open Innovation 5
2.4 Open Innovation Processes and Model 7
2.4.1 Inside-Out Process 7
2.4.2 Outside-In Process 8
2.4.3. Coupled Process 9
2.5 Benefits of Open Innovation 11
2.6 Open Innovation in Pharmaceutical Industry 12
2.6.1 Open Innovation Element in Pharma Industry 13
CHAPTER 3 RESEARCH METHODS 16
3.1 Research Design 16
3.2 Research Materials 17
3.3 Data Collection Procedure 17
3.4 Data Analysis 17
CHAPTER 4 CASE STUDY 19
4.1 Companies Overview 19
4.1.1 Background of Company L (Pharmaceutical Company) 19
4.1.2 Background of QPS 20
4.2 Why Pharma L Need to Adapt OI? 22
4.3 Process 24
4.3.1 Adaptation of Open Innovation in Company L 24
4.3.2 IP Management 26
4.3.3 Internal Capabilities and External Network 26
4.3.4 Significant Role of QPS 27
4.4 Mutual Benefits From OI 28
4.4.1 Cutting Costs 29
4.4.2 Chasing Innovation 29
4.4.3 Opening Dedicated Knowledge and Technology 30
4.4.4 Increasing Speed and Agility 31
CHAPTER 5 CONCLUSION 32
LIMITATION 33
References 33
Appendix 36
Interview Questionnaires 36

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Websites
1. https://en.wikipedia.org/wiki/Clinical_trial
2. https://www.qps.com/
3. www.contractpharma.com
4. Company L website (confidential)