Development of SMEs and heterogeneity of trajectories: the case of biotechnology in France

Vincent Mangematin (), Stéphane Lemarié (), Jean-Pierre Boissin, David Catherine (), Frédéric Corolleur (), Roger Coronini and Michel Trommetter
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Vincent Mangematin: GAEL - Laboratoire d'Economie Appliquée = Grenoble Applied Economics Laboratory - UPMF - Université Pierre Mendès France - Grenoble 2 - INRA - Institut National de la Recherche Agronomique, MTS - Management Technologique et Strategique - EESC-GEM Grenoble Ecole de Management
Stéphane Lemarié: GAEL - Laboratoire d'Economie Appliquée = Grenoble Applied Economics Laboratory - UPMF - Université Pierre Mendès France - Grenoble 2 - INRA - Institut National de la Recherche Agronomique
Jean-Pierre Boissin: CERAG - Centre d'études et de recherches appliquées à la gestion - UPMF - Université Pierre Mendès France - Grenoble 2 - CNRS - Centre National de la Recherche Scientifique
David Catherine: MTS - Management Technologique et Strategique - EESC-GEM Grenoble Ecole de Management
Frédéric Corolleur: GAEL - Laboratoire d'Economie Appliquée = Grenoble Applied Economics Laboratory - UPMF - Université Pierre Mendès France - Grenoble 2 - INRA - Institut National de la Recherche Agronomique
Roger Coronini: GAEL - Laboratoire d'Economie Appliquée = Grenoble Applied Economics Laboratory - UPMF - Université Pierre Mendès France - Grenoble 2 - INRA - Institut National de la Recherche Agronomique

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Abstract: Biotechnology is an emergent sector based on the creation of research-intensive Small and Medium Enterprises (SMEs). While some SMEs are growing, most of them remain small, even those set-up several years ago. What is the pattern of development of the biotech sector? What are the patterns of development of firms? Studies on the development of high-tech SMEs have focused on a business model, in which entrepreneurs rely on growth forecasts to persuade capital investors (business angels and venture capitalists) to invest in a radical innovation project. Firms aim for a world market to industrialise their innovation, and initial public offering (IPO) enables initial investors to make profits that offset risky initial investment. While this model is appealing, it is simply one of the possible models of biotechnology development. Some firms are not designed to experience exponential growth, and choose to target local markets. Moreover, not all firms have the ambition of being listed on the stock exchange. Based on an in-depth analysis of the business and development of 60 French biotech SMEs, this article identifies two business models. By defining the development trajectories of each of these models, it highlights the temporary nature of the emergent model.

Keywords: Biotechnology; SMEs; Resources; Innovation; Research; Corporate strategy; Business model; Trajectories of development (search for similar items in EconPapers)
Date: 2003
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Published in Research Policy, 2003, 32 (4), pp.621-638. ⟨10.1016/S0048-7333(02)00045-8⟩

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Related works:
Working Paper: Development of SMEs and heterogeneity of trajectories: the case of biotechnology in France (2006)
Working Paper: Development of SMEs and heterogeneity of trajectories: the case of biotechnology in France (2006)
Journal Article: Development of SMEs and heterogeneity of trajectories: the case of biotechnology in France (2003)
Working Paper: Development of SMEs and heterogeneity of trajectories: the case of biotechnology in France (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00422563

DOI: 10.1016/S0048-7333(02)00045-8

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