Small- to medium-size biotech firms’ marketing efforts during the fuzzy front end of innovation

Abstract

The purpose of this study is to understand the nature of and the extent to which the type and level of marketing efforts help with the continuation of early-stage innovations. The locus between the phases of Research and Development and New Product Development is defined as the fuzzy front end of innovation, frequently called the ‘‘Valley of Death.’’ This early stage of innovation is typified by high risks and scarcity of project resources. The challenge for a firm as it develops an early-stage innovation is securing adequate financial, human, and physical project resources. For this study, early-stage innovations are represented by the US National Institutes of Health licenses accorded to small- to medium-size firms. The study develops firm profiles that describe combinations of marketing efforts that enable innovation continuation during the fuzzy front end of innovation. Profiles are evident in terms of marketing variables, firm attributes, and project resources. These profiles vary for type of firm and also by the stage in the firm’s life cycle. The contributions of this study are to (a) develop combinations of variables and profiles for describing and predicting early-stage innovation continuation, (b) provide pragmatic information to potential stakeholders about how to identify and foster early-stage innovations, and (c) help small- to medium-size firms understand how to position and promote themselves in order to obtain resources and advance early-stage innovations.