Developing Capabilities: An Analysis of Biotechnology in two Regions in Australia and Sweden

This article analyses whether regions develop capabilities in terms of scientific, technological and business activities within specific biotechnology areas. We take a broad definition of biotechnology, and identify four industry areas: (1) core biotechnology; (2) drugs; (3) medical technologies; (4) agriculture. Capabilities and specialization-diversification are analysed for the regions of Gothenburg in western Sweden, and Brisbane in Queensland, Australia, for the period 1997--2001. These regions are relatively ordinary, and not well-studied, biotech mega-centres. The results suggest there are positive feedback mechanisms that occur in co-located activities developing regional capabilities. Regional success within biotechnology, then, is related to the existence of all or most of the different value adding activities within a sector, as well as being reasonably diversified within related sectors. This is true for all measured industry areas, although regional capability development within core biotechnology shows signs of a relatively more disruptive pattern.