The Development of Minich and Cambridge Therapeutic Biotech Firms: A Case Study of Institutional Adaptation
Title: The Development of Minich and Cambridge Therapeutic Biotech Firms: A Case Study of Institutional Adaptation
Author: JONG, Simcha
Series/Report no.: EUI SPS; 2006/10
Defying institutional stereotypes which state that the German capitalist model does not support the formation of entrepreneurial high tech industries in technologically disruptive markets, Munich entrepreneurs have succeeded in building up a significant biotech industry since the late 1990s. Using recruitment, citation and financial data this paper contrasts the development of therapeutic biotech firms founded after 1993 in Munich and Cambridge and analyzes how despite their comparative institutional disadvantages, Munich’s biotech firms have been able to develop the capabilities required to deal with a biotech firm’s key organizational challenges. This paper’s findings shed valuable insights on the mechanisms through which entrepreneurs in new industries are able defy national institutional settings that could constrain the development of key organizational capabilities and find alternative institutional paths to sustain the development of their firms.
Type of Access: openAccess