The Barriers to Growth of Biotechnology Companies in Emerging Economies; Regional Case Study Analysis
Martin, M.
Abstract:
This paper presents the key results emerging from the case study analysis carried out in SME biotechnology companies located in Lodz Region (Central Poland). The research was carried out in the form of face to face in depth interview with the key people representing biotechnology companies operating in the region. This research is a part of the larger project titled the “Conditions and Perspectives for Development of Biotechnology Companies in Poland”. The main findings of the research indicate the significant diversification between the barriers to growth of well established companies and the new business start-ups and university spinoffs. These differences in general are in line with typical variation of barriers to growth of business units along their cycle of development. In the case of newly established business units the most important barriers are associated with financial limitations and underdevelopment of financial institutions. The overall high capital intensity associated with long period of capital investment in the field of biotechnology are not recognised by financial institutions. Respondents stressed the lack of the competences of financial institutions and simplistic, underdeveloped and inappropriate approach to new business ventures’ assessment. Excessive level of protection of intellectual property rights and its overall counterproductivity was also highlighted by the respondents. Well-established business units stress the importance of human barriers and barriers associated with the economic policy of the state and legal regulations. Especially associated with accounting regulations applicable to business R&D projects and the regulations associated with the administration of publicly funded research projects coordinated by the business units. Recent regulations shift the distribution of risk and in a process are discouraging for business units considering significant research and development projects. The respondents representing well-established business units also stressed the importance of market barrier associated with the inhibited level of acceptance of new innovative products originating from domestic companies.
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APA citation
- Martin, M. (2013). The Barriers to Growth of Biotechnology Companies in Emerging Economies; Regional Case Study Analysis. International Journal of Economic Sciences, II(1), 21–39.