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

Author

Listed:
  • 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

    (EM - EMLyon Business School)

  • Vincent Mangematin

    (Global Health - MTS - Management Technologique et Strategique - EESC-GEM Grenoble Ecole de Management)

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.

Suggested Citation

  • Rodolphe Durand & Olga Bruyaka & Vincent Mangematin, 2008. "Do Science and Money Go Together? The Case of the French Biotech Industry," Post-Print hal-00422650, HAL.
    • Handle: RePEc:hal:journl:hal-00422650
    DOI: 10.1002/smj.707
    Note: View the original document on HAL open archive server: http://hal.grenoble-em.com/hal-00422650
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    Citations

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    Cited by:

    1. Jason Li-Ying & Yuandi Wang & Lutao Ning, 2016. "How do dynamic capabilities transform external technologies into firms’ renewed technological resources? – A mediation model," Asia Pacific Journal of Management, Springer, vol. 33(4), pages 1009-1036, December.
    2. Kalle Pajunen & Joonas Järvinen, 2018. "To survive or succeed? An analysis of biotechnology firms," Small Business Economics, Springer, vol. 51(3), pages 757-771, October.
    3. Raphael Greiner & Siah Ang, 2012. "Biotechnology collaborations: does business model matter?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 16(3), pages 377-392, August.
    4. Fábio de Oliveira Paula & Jorge Ferreira da Silva, 2018. "The impact of alliances and internal R&D on the firm’s innovation and financial performance," Brazilian Business Review, Fucape Business School, vol. 15(6), pages 533-550, November.
    5. Mulligan, Kevin & Lenihan, Helena & Doran, Justin & Roper, Stephen, 2022. "Harnessing the science base: Results from a national programme using publicly-funded research centres to reshape firms’ R&D," Research Policy, Elsevier, vol. 51(4).
    6. Andrea Setti, 2020. "Linking science-based firms with performance factors: An integrative systematic review of literature," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 9(2), pages 09-42, March.
    7. Yoshimi Harada & Huayi Wang & Kota Kodama & Shintaro Sengoku, 2021. "Drug Discovery Firms and Business Alliances for Sustainable Innovation," Sustainability, MDPI, vol. 13(7), pages 1-20, March.
    8. Sheng, Shibin & Zhou, Kevin Zheng & Lessassy, Leopold, 2013. "NPD speed vs. innovativeness: The contingent impact of institutional and market environments," Journal of Business Research, Elsevier, vol. 66(11), pages 2355-2362.
    9. Isabelle Piot-Lepetit & Rozenn Perrigot & Gérard Cliquet, 2014. "Organizational form and efficiency of franchise chains," Post-Print halshs-01023719, HAL.
    10. Valérie Sabatier & Vincent Mangematin & Tristan Rouselle, 2010. "From Business model to Business model portfolio in the european biopharmaceutical industry," Post-Print hal-00430782, HAL.
    11. Thakur-Wernz, Pooja & Bruyaka, Olga & Contractor, Farok, 2022. "Sourcing portfolio diversity in new product development: Antecedents and performance implications," Journal of Business Research, Elsevier, vol. 150(C), pages 179-193.
    12. Elodie Gardet, 2009. "Modes de coordination instaurés par le pivot d'un réseau d'innovation : le cas d'un porteur de projet TPE," Post-Print hal-01291988, HAL.
    13. Kwangsoo Shin & Minkyung Choy & Chul Lee & Gunno Park, 2019. "Government R&D Subsidy and Additionality of Biotechnology Firms: The Case of the South Korean Biotechnology Industry," Sustainability, MDPI, vol. 11(6), pages 1-22, March.
    14. Tan, Jianhua & Wang, Xiongyuan & Zhang, Peng, 2022. "Logistics service standardization and corporate innovation: Evidence from a natural experiment," International Review of Economics & Finance, Elsevier, vol. 77(C), pages 549-565.
    15. Coluccia, Daniela & Dabić, Marina & Del Giudice, Manlio & Fontana, Stefano & Solimene, Silvia, 2020. "R&D innovation indicator and its effects on the market. An empirical assessment from a financial perspective," Journal of Business Research, Elsevier, vol. 119(C), pages 259-271.
    16. Rozenn Perrigot, & Isabelle Piot-Lepetit & Gérard Cliquet, 2012. "Plural Form and Franchise Chains Efficency: A Dea Meta-Frontier Approach applied to French Chains," Economics Working Paper Archive (University of Rennes & University of Caen) 201210, Center for Research in Economics and Management (CREM), University of Rennes, University of Caen and CNRS.
    17. Hermann Achidi Ndofor & David G. Sirmon & Xiaoming He, 2015. "Utilizing the firm's resources: How TMT heterogeneity and resulting faultlines affect TMT tasks," Strategic Management Journal, Wiley Blackwell, vol. 36(11), pages 1656-1674, November.

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