Do Science and Money Go Together? The Case of the French Biotech Industry

Rodolphe Durand (), Olga Bruyaka () and Vincent Mangematin ()
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Rodolphe Durand: GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - HEC Paris - Ecole des Hautes Etudes Commerciales - CNRS - Centre National de la Recherche Scientifique
Olga Bruyaka: Virginia Tech [Blacksburg]
Vincent Mangematin: Global Health - MTS - Management Technologique et Strategique - EESC-GEM Grenoble Ecole de Management

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Abstract: Developing 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.

Keywords: biotech industry; rent generation; rent appropriation; value drivers (search for similar items in EconPapers)
Date: 2008
Note: View the original document on HAL open archive server: https://grenoble-em.hal.science/hal-00422650v1
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Citations: View citations in EconPapers (17)

Published in Strategic Management Journal, 2008, 29 (12), pp.1281-1299. ⟨10.1002/smj.707⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00422650

DOI: 10.1002/smj.707

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