Globalization of biotechnology: The agglomeration of dispersed knowledge and information and its implications for the political economy of technology in developing countries

Abstract

This study examines a contradictory development in the era of globalization wherein country-specific economic and socio-political institutional environment limits the global flow of technological knowledge and information, particularly in the biotechnology sector. International collaborations for developing new biotechnologies has increased significantly in recent years, but these have virtually bypassed firms in developing countries. The international flow of technologies tends to agglomerate in developed economies particularly in the US, where an appropriate mix of economic choices, social regulation and state action fostered institutional environments that facilitated the development and commercialization of biotechnologies. Moreover, with the heightening competition in the global economy, state and firms of developed economies have evolved into a relationship of close partnership. This shows that, far from being irrelevant, the state remains a political entity that structures the innovation system in order to promote the well-being of its firms. This calls for a re-thinking of the role of the state in technological and economic development, particularly among the developing economies.