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Date: 06/10/2008

Level: Master Thesis in International Business and Entrepreneurship

Title: Organizational innovation processes and network relationship development-“The case study of Athera Biotechnologies and AstraZeneca R&D”

Authors: Marina Tasheva and Patchara Thaisrivichai

Advisor: Bengt Olsson

Research Problem: It has been known that developing a novel drug in pharmaceutical companies is a complex and expensive process. A company within these industries is forced to increase its innovativeness in order to compete with others. In this case study we will examine Athera Biotechnologies AB and AstraZeneca R&D respectively and how both companies promote, develop, sustain and enhance organizational innovation. At the same time we will also examine what is the two companies’ business strategy when it comes to networks relationship development.

Aim of thesis: The main purpose of our thesis is to compare two Swedish pharmaceutical companies and to see what are the differences and similarities in the way they foster organizational innovation processes.

Method: The method used for analyzing the collected data and information in our research is qualitative. We decided to use this method to examine the two companies’ organizational innovation processes and networks development. Further on we have collected both primary and secondary data. Primary data was collected through two semi-structured interviews with open questions. Secondary data was gathered from companies’ official web sites, annual reports and different publications and articles.

Conclusion: Our findings indicate that organizational innovation is crucial for pharmaceutical and biotechnological companies to sustain their competitive advantage in the rapid changing environment within this industry. Further more, entrepreneurial culture, corporate culture and networks and partnerships are the main factors that help AstraZeneca R&D and Athera to develop, maintain and enhance their organizational innovation. This in turn leads to the ability of the firms to successfully propose, adopt, develop and implement any new idea in relation to certain product or process.

Key words: Organizational Innovation, Entrepreneurial Culture, Corporate Culture, Networks and Partnership, Entrepreneurship