Innovation as the key of the pharmaceutical companies’ competitive advantage

Pharmaceutical industry belongs to the most innovative branches in Hungary. However as a consequence of increasing development costs and the strong competition on the market the means of gaining competitive advantage has become a focal point of the pharmaceutical companies’ strategy. Economic performance is highly dependent on research and knowledge and economic success is determined how companies are able to apply this knowledge and skills so how flourishing the product or technological development becomes (Imre 2000). Only those branches and companies will gain competitive advantage that are able to compete on knowledge and technology. Since science and technology are considered to be the most important source of economic development, it contributes to the more effective restructuring and increased productivity.