The Positive Impact of Inter-Organizational Networking in Innovation in Biotechnology Industry: Comparative Case Analysis of Biotech Network One Nucleus

Abstract

To further substantiate the role of inter-organizational networking in innovation, we explored the positive impact of large networks on innovation in the biotechnology industry. The research was conducted in two parts. In the first part, a qualitative research methodology using exploratory case study is performed on the three SME members of the UK-based biotech network One Nucleus. In the second part, a quantitative research approach using comparative empirical OECD data analysis is performed. The two research methodologies used are subsequently linked together thorough a unique research approach known as processual research. A new insight is explored regarding issues linked to inter-organizational networking, like the role of networks on organizational learning, the role of third party organizations within networks, diversity of partners and the nature of learning (localized vs. global) within biotech networks. The primary data is generated on the number of alliances, types of alliances and types of innovation, whereas innovation is measured as a dependent variable. Empirical results obtained clearly indicate that innovation output (patent approval rate, patent success rate) with respect to each alliance made by the sample firms is positively impacted by the parent biotech network One Nucleus.