Table 3 Overview of innovation strategies

Product-line extension

Extensions of existing drug (e.g. reformulations and combination drugs); improvement over the predecessor

Depending on the patentability of the product/3 years of market exclusivity for extensions involving clinical research

Bhat (2005), Dubey and Dubey (2009)

New indications

Finding new potential usage by extending the therapeutic indication of the drug

3 years of market exclusivity

Bhat (2005)

Introduction of follow-on products

Introduction of next-generation drug; demonstration of improved properties

Depending on the patentability of the product

Agrawal and Thakkar (1997)

Rx-to-OTC-switch

Switching a prescription drug to OTC status; expansion of the market

–

Brass (2001)

Business model innovation

Altering the firm’s core logic for creating and capturing value by specifying the value chain

–

Mittra and Tait (2012)