Multilayer network analysis of the drugs development cycle in the global pharmaceutical industry

Abstract

Abstract Drug development is a time-consuming process from the start of research to obtaining approval, and the probability of success with a candidate compound is extremely low. We aim to understand the characteristics of the flow and localization of knowledge during drug development in the global pharmaceutical industry. We analyze the multilayer network constructed with the drug pipeline layer, global supply chain layer, and global ownership layer. First, we identify the bow-tie structure and the community structure of each network layer. The obtained bow-tie structure shows the large strongly connected component and suggests that the knowledge flow in drug pipelines has similar characteristics as the supply chain network. The communities in each layer are characterized by country, category of the company, and bow tie component. We then study the multilayer network’s knowledge flow, conduct a statistical test, and verify the significance of the overlapping links between the drug pipeline and supply chain layers. Our results suggest a strong connection between open innovation in the pharmaceutical industry and firms’ economic activities in the supply chain.

Keywords

• Multilayer network
• Pharmaceutical industry
• Drug pipeline
• Supply chain
• Ownership