Open Innovation Lessons from Big Pharma

I often catch myself thinking that big pharma companies have serious challenges on innovation – and open innovation in particular.

It must be difficult getting beyond the R&D mindset of innovation when it takes 10-15 years to be able to market a product and even harder to open up to external partners given the high level of knowledge – and thus intellectual property rights – needed.

Thus, NEWMEDS, an international consortium of universities and pharmaceutical companies such as AstraZeneca, Eli Lilly and Lundbeck caught my interest. The main objective is to develop new models and methods of drug discovery and development, paving the ways for novel treatments for schizophrenia and depression.

I like how Shitij Kapur, Dean of the Institute of Psychiatry at King’s College, describes the project. He said, “NEWMEDS is a joint response. It is not only scientifically innovative, but it is also an innovation, in creating a cluster of nearly 50 scientists from both sides to work together to achieve a common goal – better, safer and more effective medications – more quickly.”

The European Union is a key partner in the consortium and Kapur credits them for having created a neutral playground that brings together competing companies as well as developing a razor-sharp model that helps decide how to share the knowledge output.

I picked up a few lessons as I did some research on NEWSMEDS.

1. Use external, independent facilitators to develop neutral playgrounds when you want to innovate with your competitors.
2. Define clear objectives and goals upfront.
3. Have a strong process in place when it comes to sharing the output.

I think other industries can learn from this.