STRATEGIES AND PERFORMANCE OF CANADIAN BIOTECHNOLOGY FIRMS - AN EMPIRICAL-INVESTIGATION

A survey of Canadian biotechnology firms investigated the impact of th eir context on their strategies and performance. This paper reports tw o kinds of exploratory findings: a descriptive profile of the companie s and their strategies for coping with business and political contexts , and statistical comparisons between three performance groups. Three aspects of the firms' business context were highlighted: high cost of product development scarcity of capital, and lack of qualified people, especially managers. Although the firms tried to alleviate the cost a nd capital problems by engaging in collaborative alliances, small size , private ownership and the human resource problem indicated barriers to commercial success. Firms also perceived government action or inact ion in the political context as a major obstacle, which they tried to overcome through various influence tactics. When firms in three perfor mance groups were compared, the main differentiators between higher an d lower performers were development of complementary skills outside R& D, and effective transfer of organizational learning. Implications for managers and further research are discussed. Copyright (C) 1996 Elsev ier Science Ltd