Open innovation: A real option to restore value to the biopharmaceutical R&D

► The paper focuses on the R&D portfolio selection in the biopharmaceutical industry. ► It proposes a mathematical model (OOL) based on ROA to select the best portfolio. ► OOL allows to choice the best products, the means to develop them (open or closed innovation) and the self-financing policy. ► OOL is very user-friendly and it can be implemented also in a spreadsheet. ► A numerical example has been developed to compare OOL with the main models available in literature.