R&D resources development in life sciences ventures: a dynamic capabilities perspective

Abstract

Purpose The purpose of this paper is to examine the development of R&D resources in early stage life sciences firms. It looks at how young firms use dynamic capabilities to develop R&D resources. Design/methodology/approach An in-depth case study approach was used to examine the research questions. It draws on longitudinal data collected from ten life science firms. Data were collected from three rounds of interviews with each case firm. A systematic theme analysis was conducted to analyse the results. Findings Results from the study indicate that a unique set of past decisions, future opportunities, assets, capabilities, and routines leads to the development of R&D resources. It is evident that scientific breakthroughs, partnership opportunities, the founders’ experience and the firm’s ability to integrate resources and learn from earlier paths are vital to the development of R&D resources. Research limitations/implications This study extends the application of the dynamic capabilities framework to early stage life sciences ventures. It also demonstrates that dynamic capabilities can lead to the development of important resources. Practical implications The findings from this study provide prescriptive insights for evaluating alternatives on how to develop R&D resources in life sciences ventures. Originality/value Life sciences firms are critical to the modern global economy. However, little work examines how young, small life sciences firms develop R&D resources. Moreover, little work uses the dynamic capabilities framework as a lens to holistically examine how small firms develop R&D resources. This study helps to fill those gaps.