Developing a System Dynamic Model for Product Life Cycle Management of Generic Pharmaceutical Products: Its Relation with Open Innovation

The purpose of this study is to identify elements that influence the sale generic pharmaceutical products during their life cycle in order achieve more comprehensive planning and prevent a decline stage product (PLC). We used system dynamic model behaviors demand, supply, competition as three major subsystems PLC products. first investigated patterns 527 medicines “reference mode”, determined causal loop pharmaceuticals phase based on both an in-depth literature review experts’ opinions, finally simulated quantitative real-world data between 2012 2019 from Iran. Based results, “total demand accurate forecasting”, “marketing efforts”, “R D activities firm” are most critical factors involved formation drug PLC. An increase 20–50% manufacturers’ marketing R can raise sales by than 50% give manufacturers insights into processes leading declining may help entering even if total for dropping market.