This paper focuses on the characteristics of biotech firms with various levels of R&D activity. It does this by exploring the relationship between R&D intensity, alliances and the extent of regionalisation of firms' activities using evidence from a survey of US-based biotechnology firms. We profile two firm prototypes: research oriented firms and product oriented firms, focusing on their characteristics, strategies, and operations. These include activities devoted to exploration and exploitation through alliances with universities (more exploration) and with pharmaceutical companies (exploration and exploitation), and locational needs which facilitate both exploration and exploitation.