The Economics of Biotechnology


The Economics of Biotechnology

9781843767763 Edward Elgar Publishing
Edited by Maureen McKelvey, Professor, School of Business, Economics and Law, University of Gothenburg, Sweden and the late Luigi Orsenigo, formerly Professor of Industrial Organisation, University of Brescia and CESPRI (Center on the Processes of Innovation and Internationalisation), Bocconi University, Milan, Italy
Publication Date: 2006 ISBN: 978 1 84376 776 3 Extent: 968 pp
This authoritative collection covers the economics and business side of the social scientific debate about the economics of ‘modern biotechnology’ or ‘the biotechnology industry’. Biotechnology has attracted an enormous interest. Research has spawned work on a variety of theoretical issues about economic dynamics, about innovation systems and about what might be called – in the current jargon – the modern ‘learning economy’.

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This authoritative collection covers the economics and business side of the social scientific debate about the economics of ‘modern biotechnology’ or ‘the biotechnology industry’. Biotechnology has attracted an enormous interest. Research has spawned work on a variety of theoretical issues about economic dynamics, about innovation systems and about what might be called – in the current jargon – the modern ‘learning economy’. More generally, biotechnology is often perceived as one of the most important, broad, cutting-edge new technologies of the contemporary era. This collection will provide the reader with an accessible and structured understanding of the main issues which have characterized debates about the economics of biotechnology.
Critical Acclaim
‘. . . the selected contents make for a great leisurely read due to the breadth and the fluency of the various authors, and is thus generally recommended.’
– Iraj Daizadeh, Journal of Commercial Biotechnology

‘This book provides an invaluable introduction to the distinctive economic features of the biotechnology industry. Indeed, it is an introduction in more ways than one. To begin with, the 39 articles that make up the 2 volumes are the result of a thoughtful, judicious selection of the most influential contributions to the emergence and the maturation of this remarkable industry. At the same time, an introductory essay by the editors provides an indispensable reader's guide to the wide range of issues that have become especially salient along with the growth of the biotechnology industry: the costs and benefits of large vs. small firms; the benefits of vertical integration; the effectiveness of networks as a way of organizing the critical functions of R&D; the changing economics of the division of labor; the causes of geographical clustering; the relevance of the tacitness of knowledge; the impact of intellectual property rights, etc. The editors deserve to be congratulated for their endeavors in providing a book that should serve as an extremely useful research tool for a growing army of researchers. The book’s usefulness is significantly enhanced by the fact that it draws upon a wide range of journals, many of which will not be readily accessible except at a very small number of the largest research universities. One can only admire the depth and the breadth of the research, on the part of the editors, that must have been involved in creating this invaluable research tool.’
– Nathan Rosenberg, Stanford University, US

‘An excellent collection of papers which are not only essential for the understanding of the biotechnology industry, but are also a must for students of industrial dynamics at large, of intellectual property rights, and of the economics and geography of innovation.’
– Giovanni Dosi, St Anna School of Advanced Studies, Pisa, Italy
38 articles, dating from 1984 to 2005
Contributors include: D.B. Audretsch, M.P. Feldman, R. Henderson, M. Kenney, R.R. Nelson, G.P. Pisano, W.W. Powell, L.G. Zucker
Volume I
Preface Maureen McKelvey and Luigi Orsenigo
Introduction Maureen McKelvey and Luigi Orsenigo
1. (1984), ‘Summary’
2. Rebecca Henderson, Luigi Orsenigo and Gary P. Pisano (1999), ‘The Pharmaceutical Industry and the Revolution in Molecular Biology: Interactions Among Scientific, Institutional, and Organizational Change’
3. Govindan Parayil (2003), ‘Mapping Technological Trajectories of the Green Revolution and the Gene Revolution from Modernization to Globalization’
4. Hannah E. Kettler and Sonja Marjanovic (2004), ‘Engaging Biotechnology Companies in the Development of Innovative Solutions for Diseases of Poverty’
5. Ashish Arora and Alfonso Gambardella (1994), ‘Evaluating Technological Information and Utilizing It: Scientific Knowledge, Technological Capability, and External Linkages in Biotechnology’
6. Gary P. Pisano (1994), ‘Knowledge, Integration, and the Locus of Learning: An Empirical Analysis of Process Development’
7. Paul Nightingale (2000), ‘Economies of Scale in Experimentation: Knowledge and Technology in Pharmaceutical R&D’
8. Michelle Gittelman and Bruce Kogut (2003), ‘Does Good Science Lead to Valuable Knowledge? Biotechnology Firms and the Evolutionary Logic of Citation Patterns’
9. Maureen D. McKelvey (1996), ‘Introduction’ and ‘Conclusions for Science and Technology’
10. Martin Kenney (1986), ‘Schumpeterian Innovation and Entrepreneurs in Capitalism: A Case Study of the U.S. Biotechnology Industry’
11. David B. Audretsch (2001), ‘The Role of Small Firms in U.S. Biotechnology Clusters’
12. Lynne G. Zucker, Michael R. Darby and Marilynn B. Brewer (1998), ‘Intellectual Human Capital and the Birth of U.S. Biotechnology Enterprises’
13. Vincent Mangematin, Stéphane Lemarié, Jean-Pierre Boissin, David Catherine, Frédéric Corolleur, Roger Coronini and Michel Trommetter (2003), ‘Development of SMEs and Heterogeneity of Trajectories: The Case of Biotechnology in France’
14. Louis Galambos and Jeffrey L. Sturchio (1998), ‘Pharmaceutical Firms and the Transition to Biotechnology: A Study in Strategic Innovation’
15. Joanna Chataway, Joyce Tait and David Wield (2004), ‘Understanding Company R&D Strategies in Agro-Biotechnology: Trajectories and Blind Spots’
16. Iain Cockburn and Rebecca M. Henderson (1998), ‘Absorptive Capacity, Coauthoring Behavior, and the Organization of Research in Drug Discovery’
17. Lynne G. Zucker and Michael R. Darby (1997), ‘Present at the Biotechnological Revolution: Transformation of Technological Identity for a Large Incumbent Pharmaceutical Firm’
18. Shyama V. Ramani (2002), ‘Who is Interested in Biotech? R&D Strategies, Knowledge Base and Market Sales of Indian Biopharmaceutical Firms’
Name Index

Volume II
A preface and introduction by the editors to both volumes appears in Volume I
1. Gary P. Pisano (1991), ‘The Governance of Innovation: Vertical Integration and Collaborative Arrangements in the Biotechnology Industry’
2. Ashish Arora and Alfonso Gambardella (1990), ‘Complementarity and External Linkages: The Strategies of the Large Firms in Biotechnology’
3. Walter W. Powell, Kenneth W. Koput and Laurel Smith-Doerr (1996), ‘Interorganizational Collaboration and the Locus of Innovation: Networks of Learning in Biotechnology’
4. Julia Porter Liebeskind, Amalya Lumerman Oliver, Lynne Zucker and Marilynn Brewer (1996), ‘Social Networks, Learning, and Flexibility: Sourcing Scientific Knowledge in New Biotechnology Firms’
5. Gordon Walker, Bruce Kogut and Weijian Shan (1997), ‘Social Capital, Structural Holes and the Formation of an Industry Network’
6. Walter W. Powell, Douglas R. White, Kenneth W. Koput and Jason Owen-Smith (2005), ‘Network Dynamics and Field Evolution: The Growth of Interorganizational Collaboration in the Life Sciences’
7. L. Orsenigo, F. Pammolli and Massimo Riccaboni (2001), ‘Technological Change and Network Dynamics: Lessons from the Pharmaceutical Industry’
8. David B. Audretsch and Paula E. Stephan (1996), ‘Company-Scientist Locational Links: The Case of Biotechnology’
9. Maryann P. Feldman (2000), ‘Where Science Comes to Life: University Bioscience, Commercial Spin-offs and Regional Economic Development’
10. Toby Stuart and Olav Sorenson (2003), ‘The Geography of Opportunity: Spatial Heterogeneity in Founding Rates and the Performance of Biotechnology Firms’
11. Philip Cooke (2002), ‘Regional Innovation Systems: General Findings and Some New Evidence from Biotechnology Clusters’
12. Jorge Niosi and Tomas G. Bas (2003), ‘Biotechnology Megacentres: Montreal and Toronto Regional Systems of Innovation’
13. Martha Prevezer (2001), ‘Ingredients in the Early Development of the U.S. Biotechnology Industry’
14. Steven Casper and Hannah Kettler (2001), ‘National Institutional Frameworks and the Hybridization of Entrepreneurial Business Models: The German and UK Biotechnology Sectors’
15. Mark Lehrer and Kazuhiro Asakawa (2004), ‘Rethinking the Public Sector: Idiosyncrasies of Biotechnology Commercialization as Motors of National R&D Reform in Germany and Japan’
16. Jason Owen-Smith, Massimo Riccaboni, Fabio Pammolli and Walter W. Powell (2002), ‘A Comparison of U.S. and European University-Industry Relations in the Life Sciences’
17. Joel A.C. Baum and Brian S. Silverman (2004), ‘Picking Winners or Building Them? Alliance, Intellectual, and Human Capital as Selection Criteria in Venture Financing and Performance of Biotechnology Startups’
18. Michael A. Heller and Rebecca S. Eisenberg (1998), ‘Can Patents Deter Innovation? The Anticommons in Biomedical Research’
19. Roberto Mazzoleni and Richard R. Nelson (1998), ‘The Benefits and Costs of Strong Patent Protection: A Contribution to the Current Debate’
20. John P. Walsh, Ashish Arora and Wesley M. Cohen (2003), ‘Effects of Research Tool Patents and Licencing on Biomedical Innovation’
Name Index
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