In the past decade(s) the pharma industry has experienced an innovation gap crisis characterized by relatively flat growth rate in new drug approval rates and a steady growth of 2.5X in cost. Big pharma has tried to tackle the innovation gap with a series of strategic solutions: throwing money at internal R&D, horizontal consolidation, and increased in-licensing from the biotech sector, all with limited success. In our whitepaper, we survey the literature to pinpoint the fundamental root causes of the innovation gap. In addition we discuss emerging business models and technology enabled solutions on the horizon and assess their opportunities and challenges in addressing the R&D productivity crisis.

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