Ingredients in the Early Development of the U.S. Biotechnology Industry

Ingredients in the Early Development of the U.S. Biotechnology Industry This paper explores the ingredients that stimulated the development of the biotechnology industry in the US and contrasts conditions with those in Europe. It examines relationships between established firms and new start-ups; the financing and managerial environment and the organizational environment, whereby firms were able to set up networks of alliances. Its main findings are that: 1) The funding of the medical science research base has been substantially more generous in the U.S. than Europe. It is the funding of the science base rather than of the biotechnology industry directly that has provided the foundations for start-ups to be created out of the science base. 2) It has been easier for U.S. academics to found start-ups, close to their research establishment, and to retain their academic posts and status as well as be involved in a commercial enterprise. In Europe, the scientific/academic and commercial worlds have a wider divide. 3) Start-ups have been concentrated in the therapeutics and agricultural fields, with strong scientific research inputs into their commercialization, in contrast to other sectors where downstream processing innovations have been more important, which have been undertaken in-house by the large incumbent companies. 4) Financing and managerial conditions have been significantly easier in the U.S. for start-ups, in terms of access to venture capital specialising in high technology, ability to use the stock market to raise capital, and access to people able to forge links between scientists and entrepreneurs, and to introduce managerial expertise into new companies. 5) There has been a greater facility in the U.S. than in Europe for alliances to be formed between incumbent companies and indigenous U.S. start-ups; European start-ups have not found similar backing from European incumbent companies. Small Business Economics Springer Journals

Ingredients in the Early Development of the U.S. Biotechnology Industry

Loading next page...
Kluwer Academic Publishers
Copyright © 2001 by Kluwer Academic Publishers
Business and Management; Management; Microeconomics; Entrepreneurship; Industrial Organization
Publisher site
See Article on Publisher Site


You’re reading a free preview. Subscribe to read the entire article.

DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 12 million articles from more than
10,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Unlimited reading

Read as many articles as you need. Full articles with original layout, charts and figures. Read online, from anywhere.

Stay up to date

Keep up with your field with Personalized Recommendations and Follow Journals to get automatic updates.

Organize your research

It’s easy to organize your research with our built-in tools.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

Monthly Plan

  • Read unlimited articles
  • Personalized recommendations
  • No expiration
  • Print 20 pages per month
  • 20% off on PDF purchases
  • Organize your research
  • Get updates on your journals and topic searches


Start Free Trial

14-day Free Trial

Best Deal — 39% off

Annual Plan

  • All the features of the Professional Plan, but for 39% off!
  • Billed annually
  • No expiration
  • For the normal price of 10 articles elsewhere, you get one full year of unlimited access to articles.



billed annually
Start Free Trial

14-day Free Trial