Companies in the biotechnology industry face major challenges in developing and commercializing new products. Focusing on publicly traded biotechnology firms that are not members of university incubators or research parks, this paper argues that the links these companies develop with universities can have beneficial effects on a company's operations. Analysis of 2457 alliances undertaken by 147 biotechnology firms shows that companies with university linkages have lower research and development (R&D) expenses while having higher levels of innovative output. However, the results do not support the proposition that companies with university linkages achieve higher financial performance than similar firms without such linkages.
Bibliographical noteFunding Information:
We acknowledge the constructive comments of two JBV reviewers, Anson Seers, William Dewey, Dennis Garvis, James C. Hayton, and Patricia H. Zahra. The first author was affiliated with Syracuse University when this article was written. He gratefully acknowledges the support of the Entrepreneurship and Emerging Enterprises Program at Syracuse University. The second author acknowledges with much appreciation the support of the College of Business Administration at Georgia State.
- University-business alliances