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Building on Diversity: Institutional Foundations of Hybrid Strategies in Toronto's Life Sciences Complex

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  • Nichola Lowe
  • Meric Gertler

Abstract

Lowe N. J. and Gertler M. S. Building on diversity: institutional foundations of hybrid strategies in Toronto's life sciences complex, Regional Studies. Geographical studies of innovation typically examine the impact of regional institutions on new product and process development. This study considers the influence of these institutional systems on business strategy and firm-level responses to competitive challenges. The paper examines case of Toronto's life science complex and the growing prevalence of a business strategy of hybridization. Toronto's hybrid firms combine core strengths in biotechnology and biomedical technologies with service activities like contract research and manufacturing, blood bank and data management, and device repair and distribution. This strategy is often viewed as a response to lengthy product development cycles, impatient financiers, and the pressure to identify secondary sources of revenue. However, this explanation overlooks an equally compelling rationale stemming from the larger institutional context that shapes and constrains their strategic choices. [image omitted] Lowe N. J. et Gertler M. S. Developper la notion de diversite: les fondements institutionnels des strategies hybrides du Centre des sciences de la vie a Toronto, Regional Studies. Comme d'habitude, les etudes geographiques sur l'innovation examinent l'impact des instances regionales sur le developpement des nouveaux produits et des nouveaux procedes. La presente etude considere l'influence de ces systemes institutionnels sur la strategie commerciale et les reponses aux defis competitifs sur le plan des entreprises. On considere comme etude de cas le center des sciences de la vie a Toronto et la frequence croissante d'une strategie commerciale de d'hybridation. Les entreprises situees a Toronto combinent les principales forces de la biotechnologie et des technologies biomedicales avec des services, tels la recherche ou la production industrielle contractuelles, la gestion des banques du sang et des donnees, et la reparation et la distribution des dispositifs. Souvent une telle strategie est consideree une reponse aux cycles de developpement longs des produits, aux financiers impatients, et a la necessite d'identifier des sources de revenu secondaires. Cependant, cette explication ne considere pas une raison d'etre tout aussi convaincante qui provient du contexte institutionnel plus large qui determine et contraint les choix strategiques. Industrie biomedicale Systemes d'innovation Institutions Developpement economique Lowe N. J. und Gertler M. S. Aufbau auf Vielfalt: Institutionelle Grundlagen fur hybride Strategien im Life-Science-Komplex von Toronto, Regional Studies. In den geografischen Studien uber Innovation wird in der Regel die Auswirkung regionaler Institutionen auf die Entwicklung von neuen Produkten und Verfahren untersucht. In dieser Studie untersuchen wir, wie diese institutionellen Systeme die Geschaftsstrategie und die Reaktionen von Firmen auf Herausforderungen der Konkurrenz beeinflussen. Untersucht werden der Fall des Life-Science-Komplexes in Toronto und die wachsende Pravalenz einer Geschaftsstrategie der Hybridisierung. Die hybriden Firmen in Toronto kombinieren zentrale Starken in den Bereichen der Biotechnologie und der biomedizinischen Technologien mit Dienstleistungen wie Auftragsforschung und -produktion, Blutbank- und Datenverwaltung sowie mit der Reparatur und dem Vertrieb von Geraten. Diese Strategie wird oft als Antwort auf langwierige Produktentwicklungszyklen, ungeduldige Geldgeber und den Druck zur Erschliessung zusatzlicher Einkommensquellen betrachtet. In dieser Erklarung wird jedoch ein ebenso uberzeugender Grund ubersehen, der sich aus dem grosseren institutionellen Kontext ableitet, welcher die strategischen Entscheidungen dieser Firmen pragt und begrenzt. Biomedizinische Industrie Innovationssysteme Institutionen Wirtschaftsentwicklung Lowe N. J. y Gertler M. S. Construir la diversidad: bases institucionales de estrategias hibridas en un complejo de las ciencias de la vida en Toronto, Regional Studies. En los estudios geograficos sobre informacion se suelen examinar los efectos de las instituciones regionales en el desarrollo de nuevos productos y procesos. En este estudio analizamos la influencia de estos sistemas institucionales en la estrategia comercial y las respuestas de las empresas a los retos de la competencia. Examinamos el caso del complejo de las ciencias de la vida en Toronto y el creciente predominio de una estrategia comercial de hibridacion. Las empresas hibridas en Toronto combinan las ventajas centrales en biotecnologia y las tecnologias biomedicas con las actividades de servicios tales como la investigacion y manufacturacion contratadas, gestion de bancos de sangre y de datos, y la reparacion y distribucion de dispositivos. Esta estrategia muchas veces se considera una respuesta a la lentitud en los ciclos de desarrollos de productos, la impaciencia de inversores y la presion por identificar fuentes secundarias de ingresos. Sin embargo, esta explicacion ignora una logica igualmente convincente que procede del contexto institucional mas amplio que conforma y limita sus opciones estrategicas. Industria biomedica Sistemas de innovacion Instituciones Desarrollo economico

Suggested Citation

  • Nichola Lowe & Meric Gertler, 2009. "Building on Diversity: Institutional Foundations of Hybrid Strategies in Toronto's Life Sciences Complex," Regional Studies, Taylor & Francis Journals, vol. 43(4), pages 589-603.
  • Handle: RePEc:taf:regstd:v:43:y:2009:i:4:p:589-603
    DOI: 10.1080/00343400701875179
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    1. Gertler, Meric S., 2004. "Manufacturing Culture: The Institutional Geography of Industrial Practice," OUP Catalogue, Oxford University Press, number 9780198233824.
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    1. Feldman, Maryann & Lowe, Nichola, 2015. "Triangulating regional economies: Realizing the promise of digital data," Research Policy, Elsevier, vol. 44(9), pages 1785-1793.
    2. Tödtling, Franz & Sinozic, Tanja & Auer, Alexander, 2016. "Knowledge bases, multi-scale interaction and transformation of the Vienna medical cluster," SRE-Discussion Papers 2016/03, WU Vienna University of Economics and Business.

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