Closing the innovative loop: moving from the laboratory to the shop floor in biotechnology manufacturing

Innovation is a hallmark of successful technology-intensive start-up companies. This paper considers manufacturing as a knowledge-generating activity integral to product innovation in entrepreneurial biotechnology firms. The model of the virtual corporation has been advocated as a means to Focus on tile resources of start-up companies; yet regional specialization in technical applications and product categories suggests that manufacturing may be a knowledge-generating activity that can provide a potential source of regional advantage. This paper considers the manufacturing strategies that bio-enterpreneurs would like to pursue and explores barriers to forward integration. While capital constraints may force firms to licence and sub-contract manufacturing, it was round that entrepreneurs believe that it is important to undertake manufacturing and, when they are financiallly able, they invest in manufacturing Facilities. The authors conclude by providing a framework for considering when it might be most appropriate for biotechnology firms: to incest in manufacturing.