Title
An Examination of the Investments in U.S. Biotechnology Firms by Foreign and Domestic Corporate Partners
Department/School
Entrepreneurship
Date of this version
7-2006
Document Type
Article
Keywords
Agglomeration; Alliance; Biotechnology; Cluster; Investment; Patents
Abstract
This study examines the characteristics that make start-up biotechnology firms attractive alliance partners. We distinguish between firm specific and location-specific characteristics as well as between foreign and domestic corporate partners. We present and test a longitudinal model of alliance development based on data from 64 public biotechnology firms. The results provide evidence that foreign and domestic alliance capital inflows are driven by different factors. Firm-specific factors explain minimal variance in capital inflows from foreign alliance partners; rather, location-specific factors seem to matter more. The reverse is true for domestic alliance partners. Further, our results suggest that firm size moderates the relationship between location-specific factors and capital inflows from foreign alliance partners such that larger firms benefit more when located in technologically munificent environments.
Volume
21
Issue
4
Published in
Journal of Business Venturing
Citation/Other Information
Journal of Business Venturing, vol. 21, issue 4, pp. 405-428.