Technological infrastructure and regional economic development of biotechnology firms

Abstract

Biotechnology will have a significant effect on future global industrial competitiveness and regional economic development, and intense competition has resulted between regions and local communities to attract biotechnology investment. This paper describes empirical evidence from thirty-seven commercial biotechnology firms on background attributes, company origins, financial capital resources, market distributions, and strategic alliances. Data were collected through extensive personal interviews with senior executives and scientists. Findings indicate the significance of small- and medium-sized firms in the biotechnology sector, the entrepreneurial origins of these firms, and the key relationship between the existing regional technological infrastructure and biotechnology firm formation. Evidence also outlines shifting patterns in firm development and financing, and the move towards foreign markets and collaborative arrangements. The paper concludes with a discussion of the major challenges confronting biotechnology firms and policy implications for regional economic development.