The Effect of a Biotechnology SMEs' Network Position on Its Innovative Performance

Abstract

This research paper studies the importance of an SME’s network position within the biotechnology industry, and the effect of it on its innovative performance. We developed theoretical propositions departing from the resource based view and network theory. We argue that a firm’s position within an SME network will have an influence on the innovation output. The more R&D collaboration a small biotech firm has with other SMEs in the biotech sector, the greater the subsequent innovation output of the firm. We also argue that centrality within the network matters. These propositions will be tested using a dataset we are constructing. We used the MERIT-CATI database to select companies that formed inter-firm R&D collaborations during the period 1990-2000 in the pharmaceutical biotechnology industry. We are linking innovation measures to the firms of these R&D alliances.