Why has R&D productivity declined in the pharmaceutical industry?

Productivity in pharmaceutical R&D has been on the decline for the past several years, and much has been written on the subject. The causes for the decline in productivity are many and complex. Some of the causes are external to R&D and therefore difficult to address, such as growing regulatory conservatism and lack of international regulatory harmonisation. However, a number of the causes for the decline in productivity are internal to R&D groups and can be addressed by R&D managers, such as cost-containment and maximum use of resources. This article focuses on some of the major issues that have caused productivity to decline, and some of the areas where those who manage large R&D organisations may focus to improve R&D productivity.