Life Science New Ventures in Scotland, How International are they? Key Findings and Implications

Jones, M.V., Wheeler, C., Vlachos, G. and De Opacua, A. (2008) Life Science New Ventures in Scotland, How International are they? Key Findings and Implications. Project Report. Centre for Internationalization and Enterprise Research, University of Glasgow, Glasgow.

Abstract

<p>Life Sciences and the biotechnology sector in particular, is achieving rapid growth within a dynamic and global industry. The market for life sciences firms, and especially biotechnology firms, is for the most part global and the industry highly reliant on knowledge and expertise located in geographically dispersed clusters of excellence. The long term survival of SMEs, and the local economies in which they reside, relies on the ability of new venture life science firms to internationalise early, establish international partnerships and secure contracts with major international life science companies. From the perspective of small new ventures in life sciences sectors the challenges are often threefold, and encompass: 1) establishing and growing a new venture, including its knowledge and resource base, and a sustainable income stream, 2) developing and commercialising new technology, and 3) internationalisation.</p> <p>This report is from the first stage of a longitudinal study that will trace life science new ventures over time and examine the effect of early international decisions such as for example, the choice of international partner on growth trajectories and sustainable development. Research questions explored here are: how international are Scottish life science new ventures, to what extent and how quickly have they internationalised over their life span to date, what gaps in their early resources, competencies and capabilities may inhibit their ability to compete internationally early, and what managerial and policy implications emerge regarding the international competitiveness and sustained international growth and development of life science new ventures?</p> <p>Findings indicate that internationalisation commences early, usually within 2 years of foundation and life science new ventures can expect that their first customers will be based overseas. Despite an early start, the preparedness of most life science new ventures for rapid and sustainable international growth is generally weak. International education, experience, language ability and the presence of foreign nationals in the founding team was patchy across the firms indicating that some may be ill prepared for international growth. International networking activity was pursued by most firms and significant events and milestones reported were often international in nature. Most were aware of direct competition from local and international sources but the youngest firms tended to define their competitive advantage as vested in the technology rather than its market applications or firm specific competencies. Firms widely reported a view that the competitive advantage they have locally, would also be their advantage in international markets.</p> <p>Implications for policy are to continue to integrate programmes designed to support the early stages of development of firms in new and emerging technologies and in particular, life sciences, across entrepreneurship, innovation and internationalisation processes. Key amongst managerial implications are that founders of science based new ventures need to make explicit preparations for internationalisation from the outset. Particularly pertinent for future research, is questions relating to the impact of early international contracts on: technological and growth trajectories of firms, and their ability to develop capabilities and competencies to ensure sustainable competitive advantage in dynamic global industries.</p>

• Item Type: Research Reports or Papers (Project Report)
• Keywords: life sciences Scotland
• Status: Published
• Glasgow Author(s) Enlighten ID: Jones, Professor Marian
• Authors: Jones, M.V., Wheeler, C., Vlachos, G., and De Opacua, A.
• College/School: College of Social Sciences > Adam Smith Business School > Management
• Publisher: Centre for Internationalization and Enterprise Research, University of Glasgow