Creation of Biotech SMEs in France
The paper examines the determinants of the creation of high tech SMEs at a regional level. Relations between the scientific and technical profile of a region, the size of the local market for biotech products and services, and economic development are explored in the French biotech industry during the 1990’s. Empirical analysis shows that a high level of scientific activity within a region is necessary to sustain a continuous flow of new business creation. The likelihood of firm creation depends on scientific and technological organizational factors like cooperation between academic and private organizations. Regional policies can have positive impact on firm creation, especially by promoting diversity and excellence in science. However, contrasting with the U.S. results, the size of the local market for biotech products and services matters in the industry development. Copyright Springer 2006
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