Marketing and r&d strategies for biotechnology firms in the usa

This pape reports on a survey of 64 biotechnology firms in the USA about their R&D strategy, marketing focud and sources of technology. The survey explored the interrelationships among the strategic issues and how they were related with the means of appropriating R&D results. Three stralegic clusters for technology acquisitin emerged from the data: (i) internal developer, (ii) joint developer, and (iii) cooperative financed. Three marketing clusters were: (i) market penetartor, (ii) innovative marketer, and (iii) market developer. The R&D clusters were: (i) defensive strategy, (ii) aggressive strategy, and (iii) research-intensive strategy. External sources of technology appeared to be predominant among thje various firms and apparently marketing strategy and source of technology had no significant relationship. Most of the firms were involved with commercial innovation in their R&D strategy and few were research specialists. Innovative firms were inclined to depend on external sources sources of technology. Issues related to appropriability of R&D results for the different groups have been examined for their implications for public policy.     

Restructuring corporate r&d: from an autonomous to a linkage model

Since the mid-1980s, industrial R & D in the US has been going through major changes, i.e. a decline in industrial R&D expenditure and restructuring of centralized coqorate R&D laboratories. the autonomous model of rerearch, which has existed since World War Il, is being replaced by the linkage model in many leading corporate R&D laboratories. This paper presents the main features of both models, the reasons behind the retructuring, and the future implications of the linkage model. The findings of the paper are primarily based on 53 industrial with industrial scientists and managers; most of the changes are new and have not been examined in the literature. This paper draws the attention of scholars to recent changes in the management qf znnovatzon and sugests further study. The linkage model links scientists' research to the immediatt needs of business. However, it also decreases the likelihood of major breakthroughs occurring in technological in.innovation.     

Strategic alignment and organizational options in biotechnology firms

Biotechnology has created a number of oflfiortunities for new start-up firms. A feu of these fims have grown rapidly and have ambitious strategies. These strategies reflect the fim growing organizational competences i n the context of rapidly changing technological, competitive, Jinanczal and regulatory circumstances. The firms have pursued adaptive, learning-based strategies which give them advantages over large firms. Underpinning these strategies have been long-term efforts to establish a highly motivated and creative workforce. Using the examples fo the UK's two leading biotechnology firms, some of the features of these strategies are exumined. It is found that there are dgerences i n the organizational forms selected by the two fims. These reflect temporal factors, differing environmental conditioru, and elements of manugement choice. The difficulty oj strategic management in turbulent conditions 6s highlighted by considering some of the strengths and weaknesses of both options.     

Strategic alignment and organizational options in biotechnology firms

Biotechnology has created a number of oflfiortunities for new start-up firms. A feu of these fims have grown rapidly and have ambitious strategies. These strategies reflect the fim growing organizational competences i n the context of rapidly changing technological, competitive, Jinanczal and regulatory circumstances. The firms have pursued adaptive, learning-based strategies which give them advantages over large firms. Underpinning these strategies have been long-term efforts to establish a highly motivated and creative workforce. Using the examples fo the UK's two leading biotechnology firms, some of the features of these strategies are exumined. It is found that there are dgerences i n the organizational forms selected by the two fims. These reflect temporal factors, differing environmental conditioru, and elements of manugement choice. The difficulty oj strategic management in turbulent conditions 6s highlighted by considering some of the strengths and weaknesses of both options.     

Using resources in R&D policy planning: Brazil, the Amazon and biotechnology

Brazil's research and development (R&D) policies are examined in light of changes in economic direction especially as it pertains to competition. In a competitive environment, regions should develop industrial applications and expertise in areas that coincide with their resources. These could be human resources but could, as in the focus of this paper, be useful resources that differentiate the region from others in the world. This differentiation provides an advantage to the region. Brazil and its Amazon region has the large majority of the world's rare genes. In biotechnology, genes are “green gold,” and Brazil is slowly developing a biotechnology industry and beginning to tap into the Brazilian Amazon region's economic biotech potential. This region has enormous potential for the development of biotech-related technologies and products. This paper discusses the relationship between resources and an R&D strategy using as an example the recent developments in biotechnology research in Brazil and the role of the Amazon region in the development of a Brazilian biotechnology industry. It recommends a number of policy initiatives that will enhance Brazil's focus on biotechnology.     

Outsourcing and licensing strategies in small software firms: evolution of strategies and implications for firm growth,internationalisation and innovation

Current literature contains extensive results on the possibilities for capitalising different outsourcing strategies. However, previous research suffers from shortcomings on how these overall possibilities and benefits of outsourcing apply to the context of small and medium sized companies in several industries, and in particular, how the outsourcing strategies correlate to a firm's overall strategy during different phases of growth. Through the theoretical structuring and empirical analysis of six small and medium sized software companies and a total of 14 outsourcing or licensing projects, this article provides evidence and further develops the current theory-base on how small computer software companies are able to capitalise on and benefit from using external research-oriented product development related resources during different stages of their growth process. The results of this article are composed into a framework introducing propositions and testable hypotheses for future research.     

Technological competence and the influence of networks: a comparative analysis of new biotechnology firms in france and britain

The objective of this paper is to examine the role of external networks not only as a resource but also as a constraint for the evolution ofthe technological competence of twenty new biotechnology firms (NBFs) in France and Britain. The analysis is bared on extensive interviews conducted with the Chief Executive Officers (CEOs) of twenty NBFs, ten in France and ten in Britain. The paper identifies the network structures ofthe tweng NBFs and the impact of netmorks on the evolution of their technologial competence. The paper also attempts to identify the differences between NBFs in France and Britain in terms of the framework developed. It clearly illustrates that the capacity of NBFs to construct appropriate external linkages with other firms andfinanckrs is crucial to their success.     

Patterns and strategies of Foreign Direct Investment: the case of Japanese firms

This paper is to study globalization motives and strategies of Japanese manufacturing industries by analyzing the causes and patterns of foreign direct investment (FDI) of Japanese manufacturing firms. We use regression analysis to determine internally driving-out factors and externally-inducing factors. Japanese FDI strategy has gone through three different stages; from natural resource-seeking investment in the 1950s and 1960s to market-expansion investment in the 1970s and 1980s and to a combination of cost-reducing (low-cost labor-seeking) investment and market-penetrating investment in the 1990s. Our findings show that Japanese FDI in Asia and other developing countries tends to be in labor-intensive sectors where Japanese firms are losing their comparative advantages at home. The main motive for FDI into these regions is low-cost resource seeking. On the other hand, Japanese FDI in the US and Europe tends to be knowledge-intensive sectors where Japanese firms attempt to internalize transaction and information costs by globalizing its production. The main motive for FDI into these regions is market-seeking.     

Influence of open innovation strategies on employment dynamics: evidence for Spanish manufacturing firms

ABSTRACT

In this paper, we explore the influence of different modes of openness of innovative firms on employment growth. Using a panel database of Spanish manufacturing firms during the period 1998–2015, we analyze the influence open innovation (OI) strategies on employment distinguishing by type of external partner. The main objective of the research is to know whether opening innovation strategy contributes to employment taken into account another firm capabilities and sectorial technological opportunities. For this purpose, a two-step procedure is specified. Firstly, a random-effect computes the effects of OI on the innovation probability. In the second step, the variation of innovativeness due to openness on GMM-system estimation controlling by potential endogeneity and unobserved firm heterogeneity is used. The results support that the influence of open strategy on employment growth is positive. Moreover, the employment depends on the breadth of OI measured by the number of out-inbound relationships. Finally, the employment consequences are different for each mode of open strategy.     

Productivity and R&D sources: evidence for Catalan firms

This paper draws on a sample of innovative Catalan firms to identify how two main sources of innovation – internal R&D and external R&D acquisition – affect productivity in the manufacturing and service industries. The sample comprises 1612 innovative firms from the fourth European Community Innovation Survey (CIS-4) during the period 2002–2004. We compare empirical results when applying the usual OLS and quantile regression techniques controlling with a non-parametric sample selection. Our results indicate the different patterns that are attributable to the two sources of innovation as we move up from lower to higher conditional quantiles. First, the marginal effect of internal R&D on productivity decreased as we moved up to higher productivity levels. Second, the marginal effect of external R&D acquisition increased as we moved up to higher productivity levels. Finally, empirical results show significant complementarities between internal and external R&D, which are higher for knowledge-intensive service sectors.     

Relocation and investment in R&D by firms

The literature on foreign direct investment has analyzed corporate location decisions when firms invest in R&D to reduce production costs. Such firms may set up new plants in other developed countries while maintaining their domestic plants. In contrast, we here consider firms that close down their domestic operations and relocate to countries where wage costs are lower. Thus, we assume that firms may reduce their production costs by investing in R&D and likewise by moving their plants abroad. We show that these two mechanisms are complementary. When a firm relocates it invests more in R&D than when it does not change its location and, therefore, its production cost is lower in the first case. As a result, investment in R&D encourages firms to relocate.     

Innovation,product development and market value: evidence from the biotechnology industryinnovation in biotechnology industry

The subject of the paper is financial valuation of firm's knowledge assets and returns to innovation in the biotechnology industry, where such assets appear to play key role in the commercial success of a product. The biotechnology industry is extremely research-intensive, and successful R&D drives profitability. Further, the pharmaceutical product development advances in a number of well-defined stages that allow relatively precise measurement of product development outcomes. The study reports recent biotechnology R&D statistics, and provides estimates of private returns to innovation and product development activity in the biotechnology industry. The conclusions indicate that the financial market recognizes the value of drugs in product development stage, as it expects the innovative knowledge embodied in drug development projects to become marketable products in the future.     

Public funding for innovation and the exit of firms

This paper focuses on the effect public subsidies for innovation have on the exit of firms. Utilizing Finnish firm level data I employ a kernel matching approach to eliminate the selection bias of public funding and estimate the counterfactual. As a robustness check a treatment model is estimated. Public funding for innovation exhibits a significant effect reducing the probability of exit. Distinguishing between exit by merger and exit by closure shows that public funding has a significant effect on the former. No significant effect on the latter can be found.     

Stuck outside the single market; Evidence from firms in central and eastern Europe

Border effects on firms’ performance are typically estimated following reduced barriers to trade, for instance due to new trade agreements. This paper estimates a border effect on increasing barriers for firms located outside of a new external EU border following the 2004 and 2007 EU enlargement. In a repeated cross-section of three flows of EBRD-World Bank survey data, the study encompasses 23 border regions in 10 countries, four of which bordered new EU/Schengen countries. Taking border transformations as exogenous changes to firms’ environments, and focusing on small and medium-sized enterprises near borders, the results indicate that five years after enlargement, firms in non-EU member states near a new external EU border experienced a fall in sales of 40% and exports of 70% relative to firms near borders that did not change. Firms on the EU side of the same border experienced no such negative effect. Ten years after enlargement, the negative effects effectively disappeared.     

Entry of foreign firms and the R&D behaviour: a panel data study of domestic and foreign firms in China's manufacturing sector

Rapid globalization has resulted in increased competitive pressures. The entry of foreign firms in a host economy increases the level of competition faced by not only the domestic firms but also the existing foreign firms. We argue that domestic firms, especially in developing countries, respond to this situation by increasing their research and development (R&D) spending, whereas the foreign firms decrease their R&D spending. By making use of firm-level panel data from China's manufacturing sector, over the period 2005–2007, this paper investigates the impact of the entry of foreign firms on R&D behaviour of domestic and foreign firms. Empirical analysis, based on Tobit and Instrumental Variables Tobit regression, reveals that foreign entry increases the R&D intensity of domestic firms but its impact on R&D intensity of foreign firms is negative. The estimated results are found to be robust across balanced and unbalanced panels.     

Exploring larger biotech research firm strategies: Projections from a comparison of small and larger firms

This is an exploratory study of larger biotech firms using insights from a head-to-head comparison of 49 small and 17 large U.S. biotech firms using archival data. We found small and large biotech firms to be significantly different from each other on R&D intensity and funding strategies. The findings are used to project and hypothesize about larger biotech firm growth strategies.Whereas R&D expenses in the small firms exceed total income by a wide margin, larger firms are able to cover most, if not all, of their R&D expenses. Thus, the larger firms are relatively more financially viable. Results also show that the larger firms derive a greater proportion of their revenues from collaborative research agreements (CRAs), which has key implications for revenue growth in these firms.Based on the findings we project R&D expenses and collaborative research revenues for biotech firms as they grow in size.     

Asymmetric firms,technology sharing and R&D investment

We use a combination of theory and experiment to study the incentives for firms to share knowledge when they engage in research and development (R&D) in an uncertain environment. We consider both symmetric and asymmetric starting points with regards to the amount of initial knowledge firms have before conducting R&D and look at how differences in starting positions affect the willingness of firms to share knowledge. We investigate when and if firms find R&D cooperation beneficial and how investment in R&D is affected by the outcome of the sharing decisions. The experimental evidence shows that overall subjects tend to behave consistently with theoretical predictions for the sharing of knowledge, although leaders who are not compensated by a side payment from laggards are more willing to share than predicted by the theory, and leaders who are compensated are less willing. The data on investment suggests less investment with sharing than without, consistent with theory. Compared to exact numerical predictions, there is overinvestment or underinvestment except for symmetric firms under no sharing. All cases of overinvestment and underinvestment, regardless of sharing or not and regardless of starting positions, are well explained by smoothed-out best (quantal) responses.