In a recent Wall Street Journal column, Thomas Friedman presents an interesting take on the Chinese economy, which brings to mind an interesting parallel with the drug development industry. He describes two counterparts: “Command China,” which consists of the Communist Party and traditional, state-owned enterprises, and “Network China,” which is a highly entrepreneurial sector that participates in diverse, high-value flows of business knowledge.
Friedman argues that these economies are at odds, quoting noted business writer John Hagle, who writes, “we are shifting from a world where the key source of strategic advantage was in protecting and extracting value from a given set of knowledge stocks…into a world in which the focus of value creation is effective participation in knowledge flows, which are constantly being renewed.”
While a purely free-flowing exchange of information in our industry would probably not be feasible due to regulatory restrictions, the knowledge flow concept can still be applied to how information is exchanged within a specific study or program, and where pharma, biotech, and device companies look for innovation.
At the study level, a continuous flow of dynamic information made possible by advanced research methods and new technologies gives sponsors the ability to receive real-time information and act on it as quickly as possible. This is contrary to the traditional research model, where information is collected and analyzed periodically, or at the end of the study, and then decisions are made.
At the organizational level, many large companies don’t methodically search for innovation outside their own walls. To be successful, they need to look to specialized consultants and service providers who have the experience and expertise implementing new processes and technologies.
As Friedman points out: “The future belongs to those who promote richer and ever more diverse knowledge flows and develop the institutions and practices required to harness them.” As we continue to see skyrocketing costs, drug developers that embrace new ways of running trials and sharing information have the greatest chance of success.