Strategic Considerations for Innovation and Commercialization in the US Biotechnology Sector

This paper examines the importance of alliances as an innovation strategy utilized by US biotechnology firms. In doing so, the role of alliances with universities vis-à-vis alliances with industrial companies is emphasized. The biotechnology sector is dominated by few large and many small firms. The small firms are research focused or technology developers. Several large firms are now integrated biopharmaceutical companies. Very few small firms can survive without strengthening their relationships with universities, biotechnology or pharmaceutical or other large companies. These relationships range from licensing agreements, export–import connections to various forms of alliances for R&D, product development and marketing. Large firms supplement in-house R&D by acquiring research products and/or new technologies from small firms as well as universities. A survey of US biotechnology companies is used to show the emergence of alliance relationships, which continue to highlight university linkages, emphasize connections of biotechnology firms with other biotechnology entrepreneurs, and an ongoing effort to build a synergistic relationship with pharmaceutical or other large companies. Most linkages are not confined to the local area; the main locational attribute is the science base or the labour market.     

Networks Mobilized to Access Key Resources at Early Stages of Biotech Firms: A Comparative Analysis in Two Moderately Innovative Countries

This paper investigates the networking behaviour of biotechnology start-ups in peripheral locations. The aim is to understand whether the conditions found in this type of environment introduce some specificities in the networking process, namely in network building and early mobilization to access key resources. The paper compares biotechnology start-ups in Portugal and in Southern Italy, focusing on relationships with research organizations and on the relevance assumed by international connections, and investigating the role played by entrepreneurs’ personal networks. The research identified some common features that diverge from the typical biotechnology start-up behaviour and can be regarded as firms’ adaptive responses to the conditions faced. Notwithstanding the frequent presence of close connections with local research organizations—that often play functions that go much beyond that of a knowledge source—the local environment is a lesser determinant for a substantial proportion of firms than would be expected in start-ups. A distinctive feature of these firms is an extensive reliance on foreign sources, for different purposes and from the very early stages. Entrepreneurs’ personal networks are found to be instrumental, both to identify and obtain knowledge in the vicinity and to support the establishment of more complex distant relationships.     

Distant networking: The knowledge acquisition strategies of 'out-cluster' biotechnology firms

This paper addresses the conditions that enable new biotechnology firms (NBF) operating outside major biotechnology clusters, to obtain the resources and competences necessary to emerge and grow. Drawing on in-depth research on the structure, rationale and evolution of scientific and technological relationships of a group of Portuguese NBFs, the paper discusses the knowledge sourcing strategies devised by these firms and the type of factors that favour their adoption. NBFs are found to draw creatively from a diverse combination of local and distant technological relationships and to profit from a number of mechanisms that can reduce the impact of geographical distance on access to partners and on the transmission of knowledge. This behaviour is favoured by factors associated with the strength of the local science base in relevant fields and to the level of international mobility and exposure achieved by local scientists.     

Demographics,Innovative Outputs and Alliance Strategies of Canadian Biotech Firms

This paper focuses on the characteristics of biotech firms that consider alliances as critical to the innovation and commercialization of biotech-based products. First, we consider alliances with both universities and industries. Next, we examine attributes for those firms who consider proximity to universities as critical compared with others that do not put high value on physical proximity. Our study is informed by the literature on the biotechnology industry as well as studies on absorptive capacity, alliances and clusters in exploration and exploitation of knowledge, research and technologies. We analyse data based on a 2002 survey of Canadian biotech firms and find that while collaborative arrangements with universities are the most common among our sample firms, those who assign a high value to such linkages are not necessarily always the biotech firms experiencing commercial success.     

Firm Heterogeneity in Biotech: Absorptive Capacity,Strategies and Local-Regional Connections

This paper focuses on the characteristics of biotech firms with various levels of research and development (R&D) activity. It is done by exploring the relationship between R&D intensity, alliances and the extent of regionalization of firms' activities using evidence from a survey of US-based biotechnology firms. We profile two firm prototypes: research-oriented firms and product-oriented firms, focusing on their characteristics, strategies and operations. These include activities devoted to exploration and exploitation through alliances with universities (more exploration) and with pharmaceutical companies (exploration and exploitation), and locational needs which facilitate both exploration and exploitation.     

Staying Power: What Influences Micro-firm Survival in Tourism?

Abstract

The purpose of this paper is to investigate how previous experience and location of entrepreneurs influence the survival of new tourism firms. The paper departs from recent evolutionary economic geography advancements, highlighting the importance of routines and skills as well as location-specific knowledge for firm success. While having been well-researched for manufacturing industries characterized by high entry barriers, little knowledge is currently available on the factors influencing survival rates in service sectors with low entry barriers. A quantitative approach applies hazard models to investigate the survival rates over a seven-year period of a total of 133 new micro-tourism firms started between 1999 and 2001 in the four northernmost counties of Sweden. The geo-referenced micro-database ASTRID links information on firm features (e.g. firm births and deaths, spatial coordinates and industry codes) to characteristics of entrepreneurs (e.g. age, education, previous experience). The main finding is that entrepreneurs with previous work experience in related sectors are more likely to survive and, in this case, entrepreneurs without local experience tend to be less successful. We find no evidence that new firms operating in regions specialized in tourism have a survival advantage. Our analysis also indicates that surviving firms improve performance over time. The paper thus contributes new knowledge on the determinants of micro-firm survival in tourism.     

Multi-level Science Policy and Regional Innovation: The Case of the Munich Cluster for Pharmaceutical Biotechnology

Knowledge-based industries tend to develop within regional or local clusters that allow for knowledge spillovers, the generation of a critical mass of complementary competencies and skills as for spatial proximity to academic organizations out of which many highly innovative firms have been founded. The prototype of that development certainly is the biotechnology industry which has emerged since the 1970s first in the US where especially small and medium-sized research companies have been established around leading science bases. Following the example of the US biotechnology industry, public policies in many industrialized countries aimed at stimulating cluster formation in biotechnology. This holds true especially for member states of the European Union (EU) where public policy initiatives have been initiated at different territorial levels. This article refers to the Munich pharmaceutical biotechnology cluster and applies institutional and organizational indicators that have been developed in various systemic analyses of technological development and innovation. It will be shown that reforms of the institutional environment in which the innovative organizations are embedded were crucial for the commercialization of biotechnological research in Germany. These reforms have occurred mostly at the regional and national level, whereas the EU played a role especially in establishing the regulatory framework for the biotechnology industry. Organizational indicators will be applied in order to assess the modes of knowledge production within the cluster.     

(Un)related variety,urban milieu and tourism-company differentiation

High tourism growth in single-asset tourism cities is often associated with a standardization of supply of products and services by tourism entrepreneurs. However, and in contrast to this common-sense view, tourism growth in specific urban tourism milieus in the ‘sun-sea-sand’ tourism city of Antalya has stimulated tourism entrepreneurs to differentiate their products. Contrary to most economic-geography literature on spatial clusters, evolutionary economic geographers argue that inter-industry relations of (un)related variety are crucial in inter-firm differentiation. The aim of the paper is to define the factors that influence tourism-firm differentiation in the single-asset tourism city of Antalya. The empirical research is theoretically informed by evolutionary economic-geography literature, and pays much attention to the role different urban sub-milieus play in tourism-firm differentiation. It is the first research on the relation between (un)related variety and tourism-firm differentiation in tourism studies. The empirical research is based on primary data collected by a firm-level survey (hotels, restaurants, jewellery- and retail-trade firms) in the city of Antalya. The factors that influence tourism-firm differentiation are explored by using quantitative methods of analysis (an econometric logit-regression model and a correspondence analysis). The main result of the empirical research is that investments in firms in related sectors, in our case jewellery companies and hotels, are positively and significantly related to tourism-firm differentiation. In addition, the location tourism firms in areas visited by a mix of consumers (tourists and locals) also is positively and significantly related to inter-firm differentiation whereas urban milieus visited by locals only have a negative effect.     

中国企业家成长路径的地理学研究

通过建构中国786位企业家四个成长阶段空间信息数据库,本文运用地理空间分析方法和复杂网络模型,在对企业家成长时空规律分析的基础上,对中国207个城市在企业家成长中发挥的作用进行了研究,并着重对在企业家成长中发挥重要作用的30个城市的角色进行了精准识别,得出以下结论：①中国企业家成长在空间上呈现出分散-集中-分散的演化过程,长三角地区是中国企业家成长最为依赖的空间载体;②企业家成长视角下的中国城市创新网络等级层次明显,北京市以绝对优势成为中国城市创新网络的核心;③在30个扮演重要角色的城市中,只有北京与宁波两市同时身兼两个角色,其中北京为成功兼创业型,宁波为成功兼奠基型。     

The Development of Geographical Specialization of Venture Capital

Many regions have realized that access to capital is an important prerequisite for establishment and growth of businesses, and have therefore focused policies to ensure an adequate supply of risk capital. The growth of the venture capital industry in the 1990s put pressure on venture capital firms (VCFs) to act more strategically. Many VCFs have thus specialized along one or more dimensions: certain industries, stages of development of the firm, or geographical areas. A theoretical dichotomy is developed in this paper to explain regionally focused venture capital. A competence-based theoretical view sees increased competition in the industry as promoting the growth of geographical specialization, while, according to financial theory, it would lead to diversification in order to spread risk. The empirical analysis illustrates the development in the average distance between VCFs and their Danish portfolio firms. All venture capital investments are included. Findings suggest that the process of geographical specialization follows an inverted V-shaped curve. This is interpreted in light of the developments in competition and in the competencies in the market. VCFs search broadly for investment opportunities in the first phase of the emergence of the venture capital industry, but when competition increases they tend to confine themselves to investments within a closer geographical distance. The implications of these findings are important both for funds-of-funds, regional governments, and VCFs.     

The spatial diffusion of party entrepreneurs in Swedish local politics

Theoretical expectations predict instances of party formation to be unusual. It is therefore puzzling that new ‘non-national’ parties became increasingly common in Swedish local councils between 1973 and 2002. This article sets out to answer why party formation became an increasingly popular strategy throughout these years. I show that previous research has not provided satisfactory answers, and argue that existing theories are of limited use explaining this development. It is suggested that a diffusion mechanism may explain why new parties became increasingly common in Swedish local councils. Theoretically, it is argued that an entrepreneur who creates a new party inspires potential entrepreneurs in neighboring municipalities to repeat this at later points in time. A geographical clustering of municipalities where these parties exist is therefore expected. Support is found for this assertion. The result is important since it outperforms the alternative ‘local contextual’, socioeconomic hypotheses previously tested in this empirical setting.     

Digital gravity? Firm birth and relocation patterns of young digital firms in Germany

This paper analyses the spatial patterns of young (<10 years) digital firms in Germany between 2008 and 2017 on county level. Determinants of firm birth locations as well as relocations are considered jointly to understand differences in location choices within firms' life cycles. I match commercial register data of 107,321 firms with county-level administrative data to capture local characteristics. Using an OLS model with fixed effects, I find that the local knowledge base—that is, universities, research institutes, and colocated incumbents—are significant key determinants of digital firm birth when controlling for a host of local characteristics. My results indicate that for five firms per 1000 inhabitants, there is around one firm birth. Second, using a fixed effects gravity model for the analysis of relocations, I find that the most dominant explanatory factor for firm relocation across specifications is distance, that is, relocation costs. Relocation flows are more than twice as high to neighboring counties relative to other locations which shows that digital firms are not as footloose as their business model may suggest. Jointly, my results reflect economic activity's regional persistence, particularly for new firms. My paper provides evidence for policies targeting homogenous digital clusters based on strong colocation and that digital economic activity is not shifted over long distances, but the regional entrepreneurship capital is crucial for local growth.     

Israeli historical geography and the Holocaust: reconsidering the research agenda

The case of the Israeli historical geography demonstrates how nationalism affects academic research agenda. As in many other cases of nation-building, Israeli geographers have played an important role in the manipulation of landscapes and places to form a modern Jewish Israeli national identity. Their role in the construction of national consciousness expanded following the development of a territorial national conflict with the Palestinian Arabs. Despite the eighteen centuries of the pre-Zionist Diaspora, and the fact that more than a half of the Jews in the world live outside Israel, Israeli historical geographers almost totally neglect Diaspora lifestyles and spatialities and ignore the impact of the geographical imagination of Diaspora Jews on the (re)construction of Zionist territorial concepts and space. Following five decades of a Palestine/Israel-centered agenda, it is time for Israeli historical geographers to turn to the research of different spatial aspects of the Jewish Diaspora. This move should begin with the research of the spatial aspects of the concentration and annihilation of Jewish European communities during the Holocaust, and to more general spatial aspects of Nazism, as well as to the political and cultural geography of the Holocaust remembrance.     

The transformation of Israel's religious-Zionist middle class

This article argues that the emergence of a new religious-Zionist middle class in Israel may be a factor in restraining the radical potential of the political tendencies that research on religious Zionism has been pointing to for years. It examines, as test cases, the restrained protest against the Israeli disengagement from Gaza in 2005 and the most recent attempt to change the political leadership of the religious-Zionist parties prior to the 2009 elections. It concludes by connecting the processes described here with a discussion of the possible role of the Israeli middle class in mitigating the rifts within Israeli society.     

A THEORETICAL FRAMEWORK FOR SMALL BUSINESS POLICY

A number of public policy issues have been discussed in this article, the most important of which are: 1. Small business would not need special consideration if our economy were basically a competitive one. 2. A large and growing segment of our economy has sufficient market and political power to make our economy basically non-competitive. 3. Small firms tend to provide price competition, to lead in the development of new products and processes, and to generate new innovations and new employment. 4. Government policy tends to create artificial economies of scale, giving an unwarranted advantage to the very large firm. As a first approximation, a policy of government neutrality on firms of varying size is needed. But, because of discriminations which already exist which favor large firms over small firms, special small business programs may be necessary to provide an equitable policy base. Unfortunately, programs designed to benefit all business, like the investment tax credit, tend to primarily benefit larger firms (Berney, 1979). This is the case for two reasons. First, there is a basic difference in production relationships: large firms tend to be more capital intensive and small firms more labor intensive. Second, the more complex a rule or regulation, the more costly it is for small business to use it. Consequently, even the employment tax credit, which should benefit the small firm is not used by them. Instead, it tends more to benefit the larger firm. Neutrality, as a governmental policy, would appear to demand different treatment for firms of varying size. As an example, the “regulatory flexibility” concept applies different standards to different sized firms so that the burden of regulation is more equitably distributed. The concept of encouraging or requiring financial institutions and other lenders to establish “dual prime rates” is a further example. Since small firms appear to have much higher debt to equity ratios and rely more heavily on shorter-term bank credit, they are more heavily burdened by a tight money policy which forces increases of interest rates. Thus, dual prime rates help to spread the burden of rising interest costs more equally. As many people prefer to work for themselves, equalizing the burden of government policy could only serve to increase the basic growth rate for small business, thus providing an easier start for entrepreneurs and would encourage a more rapid rate of economic growth. None of these discussions, however, argues that small business should be protected from failure. The more efficient firms will succeed and prosper, and the least efficient will not. Many currently successful entrepreneurs learn how to improve their production processes or managerial skills from their failures. What is being recommended as a first step is that government should concentrate on equalizing burdens and benefits in order to achieve true neutrality. If private economies of scale do indeed exist, new firms must grow to survive; what the government should not create are artificial economies of scale with public policy. A strong argument for further action can also be made: it appears that significant external benefits are produced by an economic system with a dynamic small business sector. Since these benefits go to society as a whole rather than entrepreneurs alone in the form of increased profits, a freely operating market without government assistance does not generate as many new small businesses as would be optimal for our society. To internalize the benefits that come from small business, governmental programs need to be devised to increase the rate of return on new, innovative small businesses. Should this happen, we could then anticipate increased rapid rates of innovation and technological change, more rapid rates of employment growth, expanded price competition in all sectors of the economy, and improved export capabilities, in short, true flexibility in our capitalistic system.     

Guilty by Association: A Cross-industrial Approach to Sourcing Complementary Knowledge in the Uppsala Biotechnology Cluster

A wide range of industrial studies recognize the tendency of similar and related economic activities to co-locate in so-called industrial systems or clusters. While a cluster is defined by its cross-industrial relations the supporting and complementary role of cluster actors is seldom fully explored. This study will focus on the dynamics of cluster relations and give an account for the complementary nature of clusters by analysing anchor firms and complementary agents (such as specialized service providers and institutions for collaboration) in the Uppsala biotechnology cluster in Sweden. The empirical data used involves a triangulation of interview, survey and individual-based register data based upon a mapping of cluster actors active in 2002 and 2003. It is shown that both the formerly dominant pharmaceutical company and the local university have actively taken the role as anchor firms/organizations creating a local and dynamic milieu for biotechnology activities. Furthermore, it is shown that the local cluster consists of a variety of complementary agents contributing to knowledge spillovers and cluster competitiveness.     

SMEs and Their Peripheral Innovation Environment: Reflections from a Finnish Case

As it has now been widely argued, innovation is ever more seldom the product of isolated firms but usually requires a combination of multiple technologies, skills and competences, part of which have to be acquired from outside the boundaries of the innovating firm. As the literature on regional systems of innovation and other territorial innovation models suggests, the region is the most appropriate spatial level for investigating and understanding the nature of firms’ external knowledge acquisition in their innovation processes, as well as for identifying the critical actors and factors contributing to them. Unlike the majority of studies focusing on the innovation activities of firms at the regional level, this paper focuses not on the actual importance of different location factors, but on the perceptions of small- and medium-sized firms entrepreneurs of the quality of different factors in their regional innovation environment. By identifying differences between the perceptions of innovative and less-innovative firms, this study contributes to the literature on innovation as a regional-level phenomenon, and also tentatively puts forward some managerial and policy implications, as well as suggestions for further research.     

Entrepreneurial firms in STI and DUI mode clusters: do they need differentiated cluster facilitation?

This paper elaborates on the types of knowledge sources, actors and geographical space that are involved in innovation processes among small entrepreneurial firms located in two distinct city-based clusters in Norway with firms characterized as typical STI mode innovators (Oslo Cancer Cluster) and DUI mode innovators (Subsea cluster in Bergen). The aim of the paper is to see how, when and why firms source distinct knowledge and to what degree this aligns with their initial knowledge base and STI or DUI innovation mode. Findings show that the knowledge base and innovation mode approach hold for describing the early stages of the innovation process, suggesting cumulative path-dependent knowledge dynamics. However, at later stages, firms combine STI and DUI mode innovation logics and activate different types of sources, actors and geographical scales through combinatorial knowledge dynamics, largely pushed forward by the need to solve unforeseen challenges, to understand markets and by the need to reduce risks associated with the newness of innovations. Furthermore, we find that rigid regulatory regimes influence the dynamic interplay between sources, actors and geographical scales in the process of creating and transmitting knowledge. Based on these findings, the paper proposes cluster roles and facilitation initiatives.     

The Importance of Public Research Institutes in Innovative Networks-Empirical Results from the Metropolitan Innovation Systems Barcelona,Stockholm and Vienna

The recent discussion on economics and regional economics has increasingly stressed the importance of knowledge and information. Research institutes, in particular, are seen as crucial for assisting local firms in their innovation activities. The aim of this paper is to explore the real importance of research institutes supporting innovative activities in businesses. Based on the representative European Regional Innovation Survey the results show that the actual significance of research institutions in the support of firms' innovation processes is smaller than revealed in the concepts of the innovative networks, innovative milieu or learning region.     

The Role of Personal Factors in the Location Decision of Software Services Start-up Firms

This paper explores the factors which influence the business location decisions of start-ups, focusing in particular on the role of personal factors. Established explanations of industry location emphasize proximity to firms in the same or related industries and proximity to a wider set of business services, though recent research suggests that personal factors may play an important role in explanations of industry location—particularly in technology-enabled sectors. A survey of 97 new firms, founded between 2008 and 2012, in the Irish software services sector, shows that the business location decision is influenced by the personal motivation of entrepreneurs to attain a desired quality of life, and that this outweighs economic factors such as proximity to firms within the same or related industries, proximity to a broader set of supporting business services, infrastructure or the availability of government support schemes. Personal factors are particularly important to firms located outside the Dublin metropolitan area and to home-based businesses. This has important policy implications for national and regional governments seeking to encourage entrepreneurship in technology-enabled service sectors.