ORCIBS SEMINAR- Dimitrios (Dimitris) Andritsos

Author: CASE
Time: 15:45
Location: Migros 288



Speaker:     Dimitrios (Dimitris) Andritsos-  HEC Paris

Title:          Process Innovation in the Pharmaceutical Industry  

Date:            Tuesday, 19 February 2019

Time             15:45-17:15

Place:          CASE -Migros 288

Abstract: Problem definition: Process innovation is commonly claimed to be a major source of competitive advantage for firms. Despite this perceived influence it has received substantially less attention than product innovation and much uncertainty remains about its true association with firm performance. We investigate the relationship between a pharmaceutical manufacturing firm’s process-innovation portfolio and its economic performance.

Academic/Practical relevance: Our study uniquely conducts a multi-dimensional evaluation of a firm’s portfolio of process innovations at the product level. This allows a quantitative evaluation of both the relative benefit of the different dimensions of a portfolio as well as the potential complementarities between these.

Methodology: Through a collaboration with expert patent attorneys we develop a unique longitudinal dataset that combines secondary data and evaluations of a firm’s portfolio of process patents along three key dimensions: novelty, scope, and locus. We conduct econometric analyses for a large-scale sample of drugs open to competition from generics, for which process innovation is the main source of competitive advantage.

Results: We find a positive association between overall process innovation and firm performance. When differentiating between dimensions of process innovation, results further suggest that high novelty is benefi- cial, and complemented by a broad scope, but only for patents applying to the later phase of the pharma- ceutical manufacturing process.

Managerial Implications: Our results provide important practical insights that can inform process- related R&D investments in the pharmaceutical sector. In particular, it may not be economically beneficial to invest in high-novelty process innovations in early production stages, which are characterized by numerous opportunities to innovate with potentially higher but less predictable economic payoffs. On the other hand, at later stages of the production process, where the opportunities to innovate are less numerous with potentially lower but more predictable economic payoffs, portfolios that are jointly characterized by high novelty and high scope could be more valuable.”

Short Bio: Dimitrios (Dimitris) Andritsos is an associate professor of Information Systems and Operations Management at HEC Paris. He holds a Ph.D. in Management from the UCLA Anderson School of Management, a Masters degree in Supply Chain Management from the Massachusetts Institute of Technology and a Masters degree in Industrial Engineering from Purdue University.

His research relies on data-analytic techniques to explore two broad themes: i) The operational implications of health policy design and ii) How process design can be a driver for efficiency and innovation in healthcare delivery. Dimitris has published his work in leading management journals and has received recognition at various academic conferences abroad. He regularly collaborates with academic medical centers in Europe and the US on improving the efficiency of different aspects of care delivery. Prior to receiving his Ph.D., Dimitris worked as a consultant in supply-chain redesign projects in the telecommunications and specialty chemicals industries.

Dimitris teaches various courses on services and operations management at the pre-experience, full-time MBA and executive MBA levels."