Influence of Star Bioscientists on Obtaining Venture Capital for Canadian Dedicated Biotechnology Firms

Abstract

As organizations based on science, dedicated biotechnology firms (DBFs) establish very narrow links with universities and public research institutions in developing their technologies. This chapter examines the influence of DBF relationships with star bioscientists on their venture-capital funding. It proposes a new definition of bioscientists anchored in today's technological practices. It also classifies Canadian bioscientists into four categories to give a national overview of their involvement with DBFs. The cross-analysis of 150 Canadian DBFs active in human-health applications and 431 bioscientists confirms the positive impact of these relationships on obtaining venture capital when a star is involved because of the credibility it brings to the firm. Moreover, results show that bioscientists most often chose to establish contractual agreements with existing firms or start their own. Future research directions and implications for policy makers are discussed.