Biotechnology and the UK 2000-05: Globalization and innovation

Abstract

This paper discusses some selected topics seen as being most important in currently affecting the development of biotechnology in the UK. The importance of demand side factors such as the role of professional experts, regulatory bodies, retailers, public opinion and political activity in stimulating or discouraging innovation in biotechnology is discussed. Supply side factors are then analysed, particularly the major changes in the organizations which generate biotechnology innovations - especially collaborative alliances and network firms, and the restructuring of the chemical, pharmaceutical and agro-food industries which use biotechnology, via merger, acquisition, demerger and divestment. Two important aspects of the infrastructure for innovation, which are rapidly changing and generating debate and concern, are then considered. These are intellectual property regimes on the one hand, and corporate governance and the sources of finance for investment on the other. The issue of globalization of innovative activity in biotechnology and in the industries which use it is addressed next, and it is concluded that collaborative alliances are the main mechanism by which overseas sourcing of technology is taking place. Finally, future trends and some policy implications are considered.