Financing Maryland Biotechnology

A well-developed venture capital network is important for launching regional science-based industries. Although these networks are not absolutely necessary for high-technology development, they help facilitate entrepreneurial start-ups and speed development. This article examines the degree to which the biotechnology industry in Maryland is supported by the “local” venture capital community. The authors find that the biotechnology industry is a significant importer of capital, suggesting that Maryland venture capital firms may not be playing an active enough role in economic development. Government policy should be used to strengthen the linkages between the venture capital community and the region's high-technology firms.