Despite the explosion of knowledge in basic biological processes controlling tissue regeneration and the growing interest in repairing/replacing diseased tissues and organs through various approaches (e.g., small and large molecule therapeutics, stem cell injection, tissue engineering), the pharmaceutical industry ( pharma) has been reluctant to fully adopt these technologies into the traditional drug discovery and research and development (R&D) process. In this article, I discuss knowledge-base gaps and other possible factors that may delay full incorporation of these innovations in pharma R&D. I hope that this discussion will illuminate key issues that currently limit synergistic relationships between pharma and academic institutions and may even stimulate initiation of such collaborative research.B reakthroughs in stem cell biology and the clinical evaluation of regenerative therapeutics offer an unprecedented opportunity to transform traditional pharma research and development (R&D) and revolutionize future medical practice. Capitalizing on these opportunities will require a significant transformation in the pharma R&D model, including a shift in the way pharma and academic institutions interact.Although scientific breakthroughs are driven mostly by academic institutions, conversion of novel biologic insights into successful medical products is dependent on the drug development and distribution infrastructure available in traditional pharma. In this context, successful, purpose-driven innovation at the academia -pharma interface necessitates mutual understanding of the several factors including: general philosophy, long-term vision, operational and cultural paradigms, and key drivers and stressors across both of these enterprises.To describe how emerging technologies in regenerative medicine could transform pharma R&D and revitalize this entire business sector, I will first outline the current pharma R&D business environment and the manner in which this environment is creating the need for change in the prevailing business model.It has been argued that the current pharmaceutical business model is not sustainable because of the productivity crisis in pharma R&D (Pammolli et al. 2011). Many factors are responsible including escalating R&D costs, increased pressures for improved performance drugs, increased payer pressures, excessive regulatory stringency, increased focus on high-risk research involving complex therapeutic targets, and an over-reliance on "molecular reductionEditors: