Interaction between public research organizations and industry in biotechnology

This paper summarizes the most important findings of the literature on the close interaction between public research organizations and industry in biotechnology. The first question deals with why researchers in academic organizations were and are still important players in the biotechnology industry. Three arguments explain why biotechnology emerged as an organization network: its origins in academic research, the impact of participation in networks on competitiveness and the weight of these networks on R&D intensity and innovation. The second focuses on the factors that explain the regional concentration of such interactions and of biotechnology firms. The paper concludes with a discussion of policy implications. The dynamic of biotechnology is rather unique and can be attributed to the specific institutional arrangements characterizing the American scientific system. Its replication to other sectors or countries seems rather difficult. Copyright © 2003 John Wiley & Sons, Ltd.