Life Sciences and Regional Innovation: One Path or Many?

Despite the widespread interest of national, regional and local governments in promoting their own biotechnology industry, it is now well known that this sector exhibits characteristically high levels of geographical clustering in a relatively small number of locations. However, what is less well understood is how these regions have emerged and evolved through time. While there is a tendency to conceive of the necessary and sufficient conditions in fairly universal and formulaic terms—strong research universities with leading medical schools, a well-developed local venture capital industry, and a deep labour market in highly skilled scientific occupations are factors that are most commonly emphasized—we contend that the evolutionary pathways followed by individual regions with successful life science sectors are far from identical. Differences in local historical, geographical and institutional conditions are likely to shape and constrain the subsequent actual evolution of life science industries in particular places in distinctive ways. In this paper, we examine this issue through the lens of a national, 5 years, collaborative research initiative analyzing cluster development and evolution in Canada. We present findings from the study of life science industries in Canada's three largest city regions (Montreal, Toronto and Vancouver), as well as in three smaller city regions (Ottawa, Saskatoon and Halifax). Despite the conventional wisdom that public and private research institutions determine the trajectory of life sciences cluster development, our research suggests that a multiplicity of institutional and non-institutional actors, alongside background regional conditions and chance events, provide the impetus for cluster emergence and growth. We find that regional-scale policy interventions within an overarching national institutional framework have both intended and unintended consequences in helping determine the shape and nature of each region's life science clusters. Finally, we find that both local and non-local sources of knowledge are important to sustaining growth, innovation and dynamism within life science clusters.