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The Role of Location and Regional Networks for Biotechnology Firms in Israel

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  • DAN KAUFMANN
  • DAFNA SCHWARTZ
  • AMNON FRENKEL
  • DANIEL SHEFER

Abstract

This article presents results of a study of the Israeli biotechnology sector. The findings of the study show that despite the small geographical size of the country, the Israeli biotechnology industry tends to a great extent to cluster around leading research institutes. Based on a survey of 109 high-tech projects, the study suggests that the relatively weak business background of the entrepreneurs, the fact that most of them have worked at research institutes and that most new biotechnology firms were originated from ideas that came out of universities or research institutes, can provide possible explanations for this geographical concentration. The research emphasizes the relative importance biotechnology entrepreneurs ascribe to networking, both in very early stages as well as in advanced stages of the firm development process. It is argued that although the focus of the network changes over time, both geographically and in content, its links to local research partners are maintained. It is suggested that earmarked regional support policies are crucial to the development of networks required by new biotechnology firms.

Suggested Citation

  • Dan Kaufmann & Dafna Schwartz & Amnon Frenkel & Daniel Shefer, 2003. "The Role of Location and Regional Networks for Biotechnology Firms in Israel," European Planning Studies, Taylor & Francis Journals, vol. 11(7), pages 823-840, October.
    • Handle: RePEc:taf:eurpls:v:11:y:2003:i:7:p:823-840
    DOI: 10.1080/0965431032000121364
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    Citations

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    Cited by:

    1. Dan Kaufmann & Dafna Schwartz, 2008. "Networking: The “Missing Link” in Public R&D Support Schemes," European Planning Studies, Taylor & Francis Journals, vol. 16(3), pages 429-440, January.
    2. Philip Cooke, 2004. "Life Sciences Clusters and Regional Science Policy," Urban Studies, Urban Studies Journal Limited, vol. 41(5-6), pages 1113-1131, May.
    3. Shiri M. Breznitz, 2013. "Cluster Sustainability," Economic Development Quarterly, , vol. 27(1), pages 29-39, February.
    4. Dafna Schwartz & Raphael Bar-El, 2006. "Venture Investments in Israel - A Regional Perspective Dafna Schwartz and Raphael Bar-El Ben-Gurion University, School of Management, Israel," ERSA conference papers ersa06p868, European Regional Science Association.
    5. Gilding, Michael & Brennecke, Julia & Bunton, Vikki & Lusher, Dean & Molloy, Peter L. & Codoreanu, Alex, 2020. "Network failure: Biotechnology firms, clusters and collaborations far from the world superclusters," Research Policy, Elsevier, vol. 49(2).
    6. Miki Malul & Raphael Bar-El & Dafna Schwartz, 2010. "Patterns of Cooperation in High-Tech—Constraints, Feasibility, and Benefits: Results of a Study among Palestinians and Israelis," Conflict Management and Peace Science, Peace Science Society (International), vol. 27(1), pages 67-84, February.
    7. Schwartz Dafna & Bar-El Raphael & Malul Miki, 2008. "A Joint Virtual Advanced Technology Incubator - A New Pattern of Israeli-Palestinian Economic Cooperation," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 14(2), pages 1-19, July.
    8. Dan Kaufmann & Dafna Schwartz, 2009. "Networking strategies of young biotechnology firms in Israel," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(3), pages 599-613, September.

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