NATIONAL SYSTEMS OF INNOVATION, ORGANIZATIONAL LEARNING AND INDUSTRIAL BIOTECHNOLOGY

This paper discusses the effects of national systems of innovation on organizational learning by companies, and how this affects industrial structure. The analysis focuses specifically on the industrial respons e by both large, existing companies and new small firms to the opportu nities offered by biotechnology, and how far government policy and oth er factors have shaped the different patterns of industrial developmen t which have evolved in the US and the UK. Availability of venture cap ital investment in the science base and national culture are found to be important factors which explain the different initial patterns of c ommercialization which emerged in the two countries. Evidence of consi derable learning by British organizations leads to the conclusion that , as biotechnology matures, industrial structure in the two countries will converge. Copyright (C) 1996 Elsevier Science Ltd