The Evolution and Performance of Biotechnology Regional Systems of Innovation

Abstract

The paper maintains that biotechnology regions develop as complex systems: they start with star scientists in research universities, generating knowledge spillovers, then move progressively towards regional technology markets. In the process they attract venture capital (or modify the behaviour of existing venture capital firms with the addition of biotechnology portfolios). The routines of universities are also modified with the addition of intellectual property and technology transfer offices intervening as sellers in the newly created knowledge markets. The paper also considers whether companies located in regional agglomerations grow faster than isolated ones, and whether companies spun-off from universities have a better performance than start-ups. The study is based on about 90 Canadian-based publicly quoted biotechnology companies.

Keywords: Biotechnology, Evolutionary economics, Regional innovation systems, University spin-offs