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Building a conducive environment for life science-based entrepreneurship and industry clusters

Ahn, Mark J Meeks, Michael
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    The global biopharmaceutical industry, with over $70bn in revenues and 700 publicly listed firms posting double-digit growth in North America, Europe, and Asia-Pacific in 2006, represents an attractive and promising high-growth industry of the future. Broad scientific advances and commercial successes have captured the attention and aspirations of policy makers, business people, and investors alike in spurring sector growth. An understanding of the fundamental forces that shape the industry, including the challenges faced by entrepreneurs, as well as many promising industry trends, offer several implications for investors and policy makers. This study explores industry dynamics affecting growth patterns, biotech industry cluster evolution in an era of increasing globalisation, and enabling factors which support entrepreneurship activity, productivity, and sustainability. Governments and investors seeking to create and enhance biotech entrepreneurship face several enabling trends including increasing numbers of science graduates worldwide, accelerating pace of scientific advancement, dominating role of globalisation enabling greater collaboration, democratising forces of the internet, and the relentless competitive pressure to innovate. As such, policy agendas should focus on increasing factor conditions to enhance start-up formation, alliances, and skilled employment, rather than attempt to select specific winners and losers among specific sub-sectors or individual firms.


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