The Impact of Genomics on Innovation in the Pharmaceutical Industry
L218 25 2087
University of Nottingham, University of Sussex, Nottingham Business School
Dr Paul Martin, Dr Paul Nightingale, Professor Harry Rothman
September 2002-August 2004
Website
Abstract
This project examines how the recent development of genomics has influenced the drug discovery and development process within the pharmaceutical industry and the competitiveness of the UL biotechnology sector. Genomics is claimed to be having a significant impact on the cost and productivity of innovation and the future development of new medicines, and there is evidence that the UK lags behind the US and other European countries in this key sector. The four work-packages will: 1. Describe the key genomic technologies that have been introduced into the innovation process; 2. Examine how these technologies have been commercialized by the global biotechnology industry; 3. Analyse how genomic technologies have been integrated into new patterns of drug discovery and development within large companies and explore the technical, organizational and productivity changes they have been associated with and how best their introduction might be managed; 4. Assess how genomics is being commercially developed in the UK, the competitiveness of the UK industry and how public policy might be used to strengthen UK genomics.
To achieve this the project will undertake empirical research including detailed literature searches, bibliometric analysis, surveys of the industry and interviews with managers and researchers in the pharmaceutical and biotechnology industries. It will also be conceptually innovative by drawing on both traditional innovation studies and the sociology of science and technology. In conclusion, the research will explore the implications of the development of genomics for the management of innovation in the pharmaceutical industry, UK science and technology policy, and the the future of healthcare.
Summary
Background
Pharmaceutical innovation in Europe has historically been based on organic synthetic chemistry and the screening of large libraries of variants of known biologically active compounds. While this drug discovery paradigm was successful during the Golden Age of the pharmaceutical industry in the 1950s and '60s, by the '70s and '80s decreasing returns had set in. The search for new drugs has led the industry to increasingly embrace recombinant DNA, molecular biology and, more recently, gene sequencing and analysis (genomics) techniques. During the 1990s both the drug discovery and the drug development processes within firms have been transformed by a cluster of technologies centred on genomics. The likelihood of improved efficiency and increased therapeutic success has driven all major pharmaceutical companies to embrace genomics and has seen their reinvention from predominantly chemistry-based firms to enterprises led by the life sciences. At the same time, genomics has stimulated the creation of a major sub-sector within the biotechnology industry and there are now several hundred genomics firms in the US and Europe who are actively collaborating with large pharmaceutical companies. However, the UK has lagged significantly behind both the US and Germany in the formation of dedicated genomics firms. Important policy questions are therefore raised about the relative position of the UK genomics sector and its long-term competitiveness. For its advocates, genomics holds out the prospect of greatly improved therapies and healthcare and may usher in a new era of molecular medicine. These changes will be driven by the pharmaceutical industry.
Research Design
This project will address the following main research question: What impact is the commercial development of genomics technology having on the innovation processes within the pharmaceutical industry and the competitiveness of the UK biotechnology sector? To achieve this it will:
- Describe the key genomic technologies that have been introduced into the innovation process;
- Examine how these technologies have been commercialised by the global biotechnology industry, identify the main firms involved and describe the business strategies have they adopted;
- Analyse how genomic technologies have been integrated into new patterns of drug discovery and development within large companies. Explore the technical, organisational and productivity changes they have been associated with and how best their introduction might be managed;
- Assess how genomics is being commercially developed in the UK, the competitiveness of the UK genomics industry and how public policy might be used to strengthen UK genomics;
- Explore the implications of the development of genomics for the future of healthcare in the UK
The project will cover the period 1975-2001, with a detailed focus on the 1990s, and place recent changes within the longer history of innovation in the pharmaceutical industries. The research will also be international in scope, given the global nature of the genomics industry and the inter-firm collaborations in this sector, but will pay particular attention to UK based companies. Qualitative methods will be mainly used in order to provide detailed analysis, however these will be supplemented by bibliometrics and simple quantitative analysis of industry structure and organisation. The analytical framework for this study will be novel and attempt to bring together insights from both innovation and management studies, and social studies of science and technology.
Policy and Academic Implications
Genomics has come at a critical time for the pharmaceutical and biotechnology industries, with large companies facing dwindling drug pipelines, patent expiries and consolidation. While it has been claimed that the integration of genomics has dramatically improved the efficiency of the drug discovery and development process, and will lead to better drugs and healthcare, there has been very little social sciences research evaluating this claim. Nor have there been any studies that have examined the impact of genomics on the pattern of innovation across the sector and within firms, or the way in which these changes might affect health policy and services. Given that genomic technologies are precipitating major changes in the industry and may have a profound impact on the future development of the NHS, it is vital to understand what may be one of the most important shifts in the pharmaceutical industry since its inception in the 19th century. The project will analyse the implication of these developments for health, as well as science and technology, policy and contribute to academic work on innovation and the sociology of technology.
Contacts
Outputs
TRENDS in Biotechnology Vol.22 No.11 November 2004, P Nightingale &
P Martin
Myth of the Biotech Revolution here
- pdf
News
22 November 2004
Genetics Revolution on the Radio
BBC Radio 4's 'Today Programme' briefly discussed the so called genetics revolution. A member of the IHT Programme, Dr Paul Nightingale* can be heard giving his project's view on the situation. To listen to the article in the show click below
http://www.bbc.co.uk/radio4/today/listenagain/ram/today5_biotech_20041122.ram
To read their article on the subject click here - pdf