The importance of emerging industries : the case of biopharma

The aim of this chapter is to highlight the importance of emerging industries in a continuously changing and globalized world, dominated by constant shifts of consumers’ behavior, when the arising new needs fuel the innovative approach of companies to upgrade their products and services. The interest in these new industries, in fact, traditional industries driven by disruptive ideas, is increasing within the business world in accordance with their high-growth potential, social performances, and innovation. Among the most important emerging business sectors, the biopharmaceutical industry attempts to create a very attractive commitment for increasing people’s lives, through biological substances and biotechnological means, leaving behind the traditional drugs manufactured through chemical substances. Structured in two parts, this study firstly summarizes the stages of industries' life cycles and the characteristics, challenges, and importance of emerging industries. Secondly, it presents the case of biopharma industry emergence, with a focus on the determinant factors of industry emergence and the sources of competitive advantage of biopharma industry.