Do Science and Money Go Together? The Case of the French Biotech Industry
AbstractDeveloping technological applications, entering exploitation alliances, and choosing between a research- or service-focused strategic orientation are decisions that high-tech firms must manage concurrently. This paper explores systematically the contrasting effects of these strategic determinants on rent-generation and rent-appropriation using the entire population of French biotech firms (1994-2002). Findings indicate that science and money do not go unconditionally together - the direct relationship between rent-accruing resources (e.g., patents or articles) and rent appropriation varies depending on the type of resources and the strategic orientation. Moreover, the effects of strategic determinants differ for rent-generation vs. rent-appropriation: 1) technological application diversity undermines a firm's capacity to appropriate rents - in particular for research-oriented firms; 2) exploitation alliances favor rent generation but hinder rent appropriation; 3) service-oriented firms exhibit significantly better performance than research-oriented firms. Such evidence challenges the emergence in the biotechnology industry of a 'one-best' strategic trajectory, as represented by research-intensive start-ups funded by private money engaged in publishing and patenting races.
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Bibliographic InfoPaper provided by HAL in its series Grenoble Ecole de Management (Post-Print) with number hal-00422650.
Date of creation: 2008
Date of revision:
Publication status: Published, Strategic Management Journal, 2008, 29, 12, 1281-1299
Note: View the original document on HAL open archive server: http://hal.grenoble-em.com/hal-00422650
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rent generation; rent appropriation; value drivers; biotech industry;
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