Interaction between public research organizations and industry in biotechnology

Abstract

This paper summarizes the most important findings of the literature on the close interaction between public research organizations and industry in biotechnology. The first question deals with why researchers in academic organizations were and are still important players in the biotechnology industry. Three arguments explain why biotechnology emerged as an organization network: its origins in academic research, the impact of participation in networks on competitiveness and the weight of these networks on R&D intensity and innovation. The second focuses on the factors that explain the regional concentration of such interactions and of biotechnology firms. The paper concludes with a discussion of policy implications. The dynamic of biotechnology is rather unique and can be attributed to the specific institutional arrangements characterizing the American scientific system. Its replication to other sectors or countries seems rather difficult. Copyright © 2003 John Wiley & Sons, Ltd.

Proactive versus reactive M&A activities in the biotechnology industry

“…Industry experts highlight that spin-offs of academic research institutions have a different organizational structure, culture, and strategy than independent firm foundations or corporate spin-offs. Dalpé (2003) finds that many university researchers founded biotechnology firms while retaining their academic job. Furthermore, academic spin-offs tend to establish a culture that is more science oriented and to a lesser degree commercialization oriented than other firms.…”

A spatial investigation of venture capital investment in the US biotechnology industry, 1995–2008

“…This is especially true in the biotechnology industry. Founders of new biotechnology firms are usually university researchers (Dalpe 2003;Owen-Smith and Powell 2004), who may not be exposed to commercialized trade organizations. It is easier and more likely for them to know local venture capitalists through social networks or casual conversations.…”

Different Missions and Commitment Power in R&D Organization: Theory and Evidence on Industry-University Alliances

“…Lately, a similar pattern seems to be occurring in emerging …elds such as Nanoscience. 14 In science-based sectors, moreover, some scholars have noticed a process from the collaboration with academic organizations in the very early stages of these industries, followed by an increase in the building of in-house research capacity (see for example Dalpé 2003). In mature stages of an industry, more competitors are present, and alternative paths of research with lower scienti…c content might become available.…”

“…The problem of the company can be though of as one of choosing the optimal amount of e¤ort e and the bonus b F . Equation (18), which represents the incentive compatibility constraint for the agent, will then determine b s . The company chooses the optimal level of these variables taking also into account the reservation utility of the scientist (her utility in the next best available option), which we normalize to be equal to zero for simplicity, and the non negativity constraints on b s and b F .…”