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Developmental conditions of UK biopharmaceutical ventures
Elizabeth Garnsey
Centre for Technology Management, Institute for Manufacture, University of Cambridge, United Kingdom
Abstract
A Penrosean approach is applied to UK biopharmaceutical firms in the 1990s to explore the interplay of internal and external dynamics in new firms' development. The way in which the biotech sector has emerged shapes the external conditions in which new ventures operate.
The very distinctiveness of biotech ventures illuminates common developmental processes in all new firms. The capacity of firms of this kind to create outstanding value attracts investors, ostensibly on a longer term basis than in other sectors. But facing similar problems of start up and growth as other new firms, UK biopharm ventures are under pressure to achieve returns before most of them are capable of fulfilling their potential.
Keywords
biotechnology, biopharmaceutical ventures, new firm development, value creation, investment return, realising potential
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