What Influences the Growth of Canadian Biotechnology Firms?

Abstract

This chapter examines the influence of firm characteristics on the growth of all Canadian biotechnology firms. Data collected by Statistics Canada from four Biotechnology Uses and Development Surveys (1999, 2001, 2003 and 2005) characterise the size, origin, contracts, IP, collaboration, financing, product development stage, tax credits of Canadian biotechnology firms, while employment data from the Business Register of the organisation provides the size of firms beyond 2005. Results show the importance of collaboration for exploration (knowledge) purposes, the importance of alliances for exploitation (commercialization) purposes for firms with rapid growth. Furthermore, a good product development process that brings products through regulation towards commercialization has a positive impact on firm growth and so does R&D expenses.