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Vertical And Horizontal Coordination In The Agro-Biotechnology Industry: Evidence And Implications

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  • Kalaitzandonakes, Nicholas G.
  • Bjornson, Bruce

Abstract

Agro-biotechnology is evolving from a pre-commercial phase dominated by basic research science to a commercial phase oriented around marketing products. In pursuing innovation rents in the commercial phase, firms are reorienting their strategies around complementary marketing and distribution assets. This is impacting vertical and horizontal industry structure. Conversely, industry structure is also impacting firm strategies. Horizontal alliances and consolidation continue from the pre-commercial phase into the commercial phase, while vertical coordination and integration strategies are accelerating rapidly. Interplay between firm strategy and industry structure is too complex for firms to anticipate early in the pre-commercial phase for long-term strategy formulation.

Suggested Citation

  • Kalaitzandonakes, Nicholas G. & Bjornson, Bruce, 1997. "Vertical And Horizontal Coordination In The Agro-Biotechnology Industry: Evidence And Implications," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 29(1), pages 1-11, July.
    • Handle: RePEc:ags:joaaec:15537
    DOI: 10.22004/ag.econ.15537
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    References listed on IDEAS

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    Cited by:

    1. Sambidi, Pramod R. & Harrison, R. Wes, 2006. "Spatial Clustering of the U.S. Biotech Industry," 2006 Annual meeting, July 23-26, Long Beach, CA 21360, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. Mahka Moeen & Rajshree Agarwal, 2017. "Incubation of an industry: Heterogeneous knowledge bases and modes of value capture," Strategic Management Journal, Wiley Blackwell, vol. 38(3), pages 566-587, March.
    3. Hudson, Darren & Herndon, Cary W., Jr., 2000. "Mergers, Acquisitions, Joint Ventures, And Strategic Alliances In Agricultural Cooperatives," Research Reports 15799, Mississippi State University, Department of Agricultural Economics.
    4. C.S. Srinivasan, 2005. "The International Trends In Plant Variety Protection," The Electronic Journal of Agricultural and Development Economics, Food and Agriculture Organization of the United Nations, vol. 2(2), pages 182-220.
    5. Nadolnyak, Denis A. & Sheldon, Ian M., 2002. "A Model Of Development Of Agricultural Biotechnological Innovations: Patent Policy Analysis," 2002 Annual meeting, July 28-31, Long Beach, CA 19802, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    6. Rousselière, Samira & Rousselière, Damien & Ramani, Shyama, 2016. "Innovation Led Alliances: Theory and application to the GM Plant Industry," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235711, Agricultural and Applied Economics Association.
    7. Alexander, Corinne E. & Goodhue, Rachael E., 1999. "Production Systems Competition And The Pricing Of Innovations: An Application To Biotechnology And Seed Corn," 1999 Annual meeting, August 8-11, Nashville, TN 21646, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    8. Kalaitzandonakes, Nicholas G. & Hayenga, Marvin L., 2000. "Structural Change In The Biotechnology And Seed Industrial Complex: Theory And Evidence," Transitions in Agbiotech: Economics of Strategy and Policy, June 24-25, 1999, Washington, D.C. 26026, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.

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