IDEAS home Printed from https://ideas.repec.org/b/rif/bbooks/267.html
   My bibliography  Save this book

Raiders Of Lost Value

Author

Listed:
  • Kotiranta, Annu – Kulvik
  • Tahvanainen, Antti – Trieste

Abstract

Biotechnology has been one in a row of business hypes, preceded by the dot-com boom and followed by megatrends such as nanotechnology and cleantech. Common to all is the challenge of creating value from research and development – and so is an inherent risk of failure. The created value finds form in intangible assets, which are poorly captured by traditional accounting standards and for which no well-established alternative metrics exist. It is frequently assumed that knowledge created by and embodied in a failed organization virtually disappears. Odd? To say the least! Traditional growth metrics reveal that our common perception of the Finnish biotechnology industry as an allegedly failing industry sector is largely unfounded: The growth rate of value added by the biotechnology industry has outperformed industry average more than ten-fold. Intrigued by the finding we decided to raid the dark side of the moon: the unsung, unseen, and forgotten cohort of failed and vanished companies. It turned out to be an interesting journey. Eighteen Finnish and six Italian biotechnology companies that had already been publicly written off as abandoned, failed, or lost from the map of commercial biotechnology were found to have created and nurtured a vivid mix of intellectual capital, which indeed had been recycled. In sheer numbers, the intellectual capital created in our case companies is estimated to generate sales exceeding 1 billion euros. This book tells the story of our raid and the treasure of lost value – hidden from public perception – that we found.

Suggested Citation

  • Kotiranta, Annu – Kulvik & Tahvanainen, Antti – Trieste, . "Raiders Of Lost Value," ETLA B, The Research Institute of the Finnish Economy, number 267, June.
  • Handle: RePEc:rif:bbooks:267
    as

    Download full text from publisher

    File URL: http://www.etla.fi/wp-content/uploads/Raiders_Of_Lost_Value.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hakala, Terhi & Haltia, Olli & Hermans, Raine & Kulvik, Martti & Nikinmaa, Hanna & Porcar-Castell, Albert & Pursula, Tiina, 2007. "Biotechnology as a Competitive Edge for the Finnish Forest Cluster," Discussion Papers 1076, The Research Institute of the Finnish Economy.
    2. Hopkins, Michael M. & Martin, Paul A. & Nightingale, Paul & Kraft, Alison & Mahdi, Surya, 2007. "The myth of the biotech revolution: An assessment of technological, clinical and organisational change," Research Policy, Elsevier, vol. 36(4), pages 566-589, May.
    3. Roberta Piergiovanni & Enrico Santarelli, 2013. "The more you spend, the more you get? The effects of R&D and capital expenditures on the patenting activities of biotechnology firms," Scientometrics, Springer;Akadémiai Kiadó, vol. 94(2), pages 497-521, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Alberto Onetti & Hal Steger, 2007. "Formulating an open source business model requires community segmentation and targeted marketing," Economics and Quantitative Methods qf0707, Department of Economics, University of Insubria.
    2. Alessia Pisoni & Alberto Onetti & Luciano Fratocchi & Marco Talaia, 2010. "Managing R&D activities in the Italian red biotech industry. A comparison between Italian independent firms and multinational companies," Economics and Quantitative Methods qf1003, Department of Economics, University of Insubria.
    3. Tylecote, Andrew, 2019. "Biotechnology as a new techno-economic paradigm that will help drive the world economy and mitigate climate change," Research Policy, Elsevier, vol. 48(4), pages 858-868.
    4. Fabio Sorrentino & Francesco Garraffo, 2012. "Explaining performing R&D through alliances: Implications for the business model of Italian dedicated biotech firms," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 16(3), pages 449-475, August.
    5. Roberta Piergiovanni & Enrico Santarelli, 2013. "The more you spend, the more you get? The effects of R&D and capital expenditures on the patenting activities of biotechnology firms," Scientometrics, Springer;Akadémiai Kiadó, vol. 94(2), pages 497-521, February.
    6. Irina Dezhina & V. Kiseleva, 2008. "State, Science and Business in Russia's Innovation System," Research Paper Series, Gaidar Institute for Economic Policy, issue 115P.
    7. DiVito, Lori, 2012. "Institutional entrepreneurship in constructing alternative paths: A comparison of biotech hybrids," Research Policy, Elsevier, vol. 41(5), pages 884-896.
    8. Angelo Kenneth S. Romasanta & Peter Sijde & Jacqueline Muijlwijk-Koezen, 2020. "Innovation in pharmaceutical R&D: mapping the research landscape," Scientometrics, Springer;Akadémiai Kiadó, vol. 125(3), pages 1801-1832, December.
    9. Antonio Messeni Petruzzelli & Daniele Rotolo & Vito Albino, 2014. "Determinants of Patent Citations in Biotechnology: An Analysis of Patent Influence Across the Industrial and Organizational Boundaries," SPRU Working Paper Series 2014-05, SPRU - Science Policy Research Unit, University of Sussex Business School.
    10. Davit Khachatryan & Brigitte Muehlmann, 2017. "Determinants of successful patent applications to combat financial fraud," Scientometrics, Springer;Akadémiai Kiadó, vol. 111(3), pages 1353-1383, June.
    11. Valérie Sabatier & Vincent Mangematin & Tristan Rouselle, 2010. "From Business model to Business model portfolio in the european biopharmaceutical industry," Post-Print hal-00430782, HAL.
    12. Medina-Molotla, Nelly & Thorsteinsdóttir, Halla & Frixione, Eugenio & Kuri-Harcuch, Walid, 2017. "Some factors limiting transfer of biotechnology research for health care at Cinvestav: A Mexican scientific center," Technology in Society, Elsevier, vol. 48(C), pages 1-10.
    13. Nikulainen, Tuomo & Kulvik, Martti, 2009. "How General Are General Purpose Technologies? Evidence from nano-, bio- and ICT-technologies in Finland," Discussion Papers 1208, The Research Institute of the Finnish Economy.
    14. Bergek, Anna & Berggren, Christian & Magnusson, Thomas & Hobday, Michael, 2013. "Technological discontinuities and the challenge for incumbent firms: Destruction, disruption or creative accumulation?," Research Policy, Elsevier, vol. 42(6), pages 1210-1224.
    15. Stuart Hogarth & Paul Martin, 2021. "The ratio of vision to data: Promoting emergent science and technologies through promissory regulation, the case of the FDA and personalised medicine," Regulation & Governance, John Wiley & Sons, vol. 15(3), pages 969-986, July.
    16. Ohid Yaqub, 2018. "Variation in the dynamics and performance of industrial innovation: what can we learn from vaccines and HIV vaccines?," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(1), pages 173-187.
    17. Vargas-Peláez, Claudia Marcela & Soares, Luciano & Rover, Marina Raijche Mattozo & Blatt, Carine Raquel & Mantel-Teeuwisse, Aukje & Rossi Buenaventura, Francisco Augusto & Restrepo, Luis Guillermo & L, 2017. "Towards a theoretical model on medicines as a health need," Social Science & Medicine, Elsevier, vol. 178(C), pages 167-174.
    18. 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).
    19. Anckaert, Paul-Emmanuel & Cassiman, David & Cassiman, Bruno, 2020. "Fostering practice-oriented and use-inspired science in biomedical research," Research Policy, Elsevier, vol. 49(2).
    20. Billette de Villemeur, Etienne & Scannell, Jack & Versaevel, Bruno, 2021. "Biopharmaceutical R&D outsourcing: Short-term gain for long-term pain?," MPRA Paper 108233, University Library of Munich, Germany.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rif:bbooks:267. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kaija Hyvönen-Rajecki (email available below). General contact details of provider: https://edirc.repec.org/data/etlaafi.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.