Abstract: The purpose of this research is to build an integrated and sustainable model innovation development to improve quality of strategic asset and innovation. This research used two-steps approach sequential equation modeling with respondents the top level managers of 121 pharmaceutical companies in Indonesia as sample research while target population of about 225 pharmaceutical companies. The result of this research concludes that quality of strategic innovation is mainly achieved through improving quality on strategic asset. By developing internal and external organizational learning, subsequently, strategic asset development will be well-developed. The process of external organizational learning is influenced by the quality of strategic alliance and the power of market orientation culture whereas the internal organizational learning has role as a growth generating factor.