The process of developing innovative capabilities in biotechnology: The case of UK firms

The advent of born-global bio-tech firms signal the genesis of a new business model that is emerging in the biotechnology sector. Born globals are small firms whose knowledge supply-chain includes global resources from multiple countries. Their innovation ‘ecosystems’ consists of experienced scientists, science parks, academics, well-established bio-pharmaceutical firms and government institutions. The firms plan their business based on global strategic perspectives and this significantly increases their productivity and innovativeness. But surprisingly, little is known about their capability development processes in the specialised networks of the biotechnology sector. As a result, this study explores the connectivity of various elements, within their knowledge supply-chain, and how they influence their capacity to generate new scientific knowledge and technical know-how. The study employs a multi-case approach. It examines five cases of bio-tech firms from the East Midlands region of the United Kingdom which have an entrepreneurial flair synonymous with born-global firms. The findings from within and across cases, secondary data analysis and results from a ‘pilot study’ led to the construction of a new conceptual framework of knowledge and innovative capability development. The model is created from the ideas of Freeman and others and it contributes to an understanding of the concepts of dynamic capabilities and network theories.