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To survive or succeed? An analysis of biotechnology firms

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  • Kalle Pajunen

    (University of Jyväskylä)

  • Joonas Järvinen

    (University of Jyväskylä)

Abstract

In this paper, we address the question whether there exists differences in the determinants that support survival versus success of small and medium-sized high-tech firms. We examine this question in the context of Finnish biotechnology industry by analyzing the survival of all dedicated biotechnology firms in the period of 1978–2008. We argue and show that the success and survival of firms are not necessarily driven by similar determinants. Specifically, we find that while the role of different types of alliances, focused market scope as well as legitimacy of the industry seem to be important both in ensuring survival and enhancing successful performance, determinants related to sources of financing, clustering, and patenting show differences in terms of how they relate on survival and success.

Suggested Citation

  • Kalle Pajunen & Joonas Järvinen, 2018. "To survive or succeed? An analysis of biotechnology firms," Small Business Economics, Springer, vol. 51(3), pages 757-771, October.
    • Handle: RePEc:kap:sbusec:v:51:y:2018:i:3:d:10.1007_s11187-017-9963-6
    DOI: 10.1007/s11187-017-9963-6
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    2. Mariia Shkolnykova, 2021. "On the way from invention to innovation: the role of applicant and inventor team characteristics," Bremen Papers on Economics & Innovation 2110, University of Bremen, Faculty of Business Studies and Economics.

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