The Biosciences Knowledge Value Chain and Comparative Incubation Models

This study provides an in-depth examination of eightbiotechnology incubators (in Europe, North America, and Israel) and theperceptions of their managers. It is concerned with three key issues abouttransforming basic, exploration knowledge into commercialized products andservices in biotechnology: (1) whether regional setting affects the span ofrequired knowledge control and the effects of the knowledge-institutionalbalance in contextualizing commercial capabilities; (2) whether incubation isthe best or only way to foster exploitation of basic research; and (3) whetherthe incubation process must be non-profit and publicly subsidized, and theeffect of location on required subsidies. The incubators are describedby type, services offered, ownership, andposition in the knowledge value chain (KVC).They are also analyzed bytheir governance models and extent of services offered. The KVC model describeshow research passes from exploration through examination to exploitation on thepath to trials and commercialization. The KVC process in life sciences is shownto be lengthy, complex, and interactive. Incubation is crucial in unifying exploration, examination, and exploitationservices for startups and evolving firms.Various types of"boundary-crossing" services to spinout biotechnology firms areidentified using the KVC model. Most important about incubators is the researchinfrastructure offered. Conclusions indicate that public or private governance does not affect spanof knowledge control--regional setting is more important. Public investment tocreate a "constructed advantage" is productive, and "serendipitousinvestment" may lead to exploitation of knowledge assets. Finally,"boundary-crossing" institutions are important intermediaries forclusters to exist.(TNM)