Life science industry has a bright prospect but the competition and risk in this industry are very high. Many companies expect to reduce this risk and to win in the competition through R&D networking with leading companies. Despite the importance of the R&D networking in life science industry, few studies have been done on this issue.
This paper identifies the main characteristics of R&D networking in life science industry and suggests key success factors of the leading companies. In order to verify these, literature review and case studies on seven leading companies (Merck, Novartis, Amgen, Genentech, Takeda Chem., Yamanouchi Pharm., and LGCI) have been done.
Through literature review and case studies, this study found three characteristics of R&D networking in life science industries; 1) Networking partners are well diversified from biotech-companies to universities, 2) The objectives of alliance are very differentiated by companies' environment, 3) The characteristics of horizontal alliances are stronger than vertical alliances. The five key success factors of the leading companies in life science industry are; 1) System focused R&D management, 2) Precise definition of their own R&D capabilities and required technologies, 3) Selection of Win-Win partners, 4) Strategic flexibility for Coopetition, 5) Long-term relationship with partners.
This paper will be a useful reference for Korean companies considering to form a R&D networking with other companies. A company must consider three characteristics and five key success factors of R&D networking identified in this paper to develop a long-term relationship with partners and to succeed.
