A global survey of 282 senior executives at pharmaceutical, biotech, medical device and service firms found dissatisfaction with their companies’ level of innovation. Their companies’ R&D strategy was rated “moderately effective” by 49% of respondents. Cost was ranked by 47% as their firms’ biggest challenge (respondents ranked their top three challenges) to improving innovation, followed by product development time, which was ranked the highest by 38% of respondents. Asked what steps their firms have taken in the past three years to improve product development efficiency, 33% “invested in technology to improve analytical capabilities” and 30% “used data to do predictive analysis” (multiple responses could be chosen). The highest percentage, 36%, plan to invest in new technology to improve efficiency in the next three years. Asked to select the top three measures that would help the most in reducing R&D costs, 45% chose “improving the cost effectiveness of internal processes.” Asked about their companies’ plans to change innovation processes over the next three years, 38% said that it was one of a handful of priorities and 26% said “change is important, but really just one priority among many others.”

Source: Economist Intelligence Unit