Partnering strategies in biotech firms: a longitudinal perspective

In this chapter, we will tty to demonstrate in this chapter tbe assumprion that OBFs' partner- ing strategies are more complex than the 'classical' symbiotic relationship portrait revealed in prior work (Hagedoom, 1993; Hagedoom and Schakenraad, 1994; Liebeskind et al., 1996; Helfat, 1997; George el al., 2001). OBFs might choose tbeir strategie alliance panners by considering botll value creation and rent appro- priation issues. In tbis vein, allying witb eslablished phannaceutical firms mighl increasc tbe risk ofknowlcdge leakage; tberefore, allying with otber biotech fllDlS may be perceivcd as less risky. We test tbese bypotbeses 00 a sample ofUS and EU biotechnology fums. We cstablish four primary fmdings lO explain tbe inno- vative output deriving from OBF alliances: (I) biotecb-biotech alliances matter; (2) better innovative pcrfonnance is realised by biolech finns with a composite alliances portfolio, including botb bio-phanna and bio-bio agreements; (3) con- sidcring tbc typology of allianccs, a patb depcndency behaviour emerges; and (4) ifwe look at thc spatial dimension ofalliances, tbere are clear-cut differences bctwceo US and EU biotcch finns. We bclieve these findings may eru1ch tbe growiog body ofwork 00 strategie alliances and provide new insights for strategic entrcpreneurship.