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Gary Pisano argues that the development of distinctive and superior process technologies is a key source of competitive advantage. In a multi-year study of international pharmaceutical firms (with references to a variety of other industries), he challenges the widely held product/process life cycle view of competition, which suggests that industries tend to emphasize either product innovation or process innovation. He also offers a set of recommendations for the practices and approaches that can be used to unlock the potential of process development. In doing so, he provides a window into the more general phenomenon of how organizations create, select, and implement new capabilities.