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Institutions, Dominant Actors, and Financial Markets: The Case of Venture Capital for Biotechnology in Switzerland

Author

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  • Raimund Hasse

    (Faculty for Humanities and Social Sciences, University of Lucerne, Frohburgstrasse 3, CH-6000 Lucerne 7, Switzerland)

  • Eva Passarge

    (Faculty for Humanities and Social Sciences, University of Lucerne, Frohburgstrasse 3, CH-6000 Lucerne 7, Switzerland)

Abstract

Since the 1990s, the new economic sociology has directed attention toward markets and, in particular, financial markets. Thus far, neo-institutional theory has not been able to make substantial contribution to this research front. We identify reasons for this shortcoming and aim to expand the scope of institutional analysis by focusing upon the constitution and governance of financial markets. Referring to the case of venture capital markets for biotechnology in Switzerland, it will be shown that the formation of the market has been strongly linked to the big Swiss pharmaceutical companies. Data are presented which indicate that the emerging venture capital market for biotechnology in Switzerland resembles contextual features such as collective arrangements and risk-averse investment strategies. The case illustrates that both the set-up of the market and its characteristic features are only loosely coupled to an abstract worldwide financial market, and, instead, are deeply interwoven with the national and sectoral context.

Suggested Citation

  • Raimund Hasse & Eva Passarge, 2016. "Institutions, Dominant Actors, and Financial Markets: The Case of Venture Capital for Biotechnology in Switzerland," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 13(06), pages 1-19, December.
    • Handle: RePEc:wsi:ijitmx:v:13:y:2016:i:06:n:s0219877017500018
    DOI: 10.1142/S0219877017500018
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    References listed on IDEAS

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