MANAGEMENT - KEY TO NEW PRODUCT DEVELOPMENT IN BIOTECHNOLOGY

What makes some firms more effective than others in new product develo pment? Answers are proposed based on evidence from five Canadian medic al biotechnology firms that varied in effectiveness. A framework of st rategic change1 was used to describe the firms. As regards their inter nal context, the more effective firms had inventor-entrepreneurs, more continuous leadership and more complete management teams. The externa l context of the effective firms was broader (e.g., incorporating univ ersities), and they had more focused strategies and targeted larger ma rkets. The strategy process of the effective and less effective firms differed as well. These differences between the less effective and mor e effective firms, seemed to stem from different managerial logics of action. These findings have implications for managers involved in new product development.