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Managing Innovation in the Information Age

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The continued vitality of the most successful U.S. and European pharmaceutical companies in the face of accelerating scientific and technological change holds valuable lessons for managers in all industries trying to respond to turbulent times. The pharmaceutical industry faces some serious challenges in the future, most notably, the proposed reform of the U.S. health care system. Yet its success in the crucial area of research can serve as a benchmark for companies seeking to become more innovative in the overloaded environment of the information age. New research conducted by Rebecca Henderson of MIT and Iain Cockburn of the University of British Columbia suggests that the longevity of pharmaceutical companies attests to a unique managerial competency: an ability to foster a high level of specialized knowledge within an organization, while preventing that information from fixing the company in the past, unable to respond to an ever-changing environment.
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