In development cycle than other organizations. In order

In conclusion Biotechnology industry is making      

The ability of attracting a partner is critical in the
biotechnology industry, since firms face vigorous competition in the aspect of
prominent and valuable allies. Also the firms founded by more prominent
scientist with stronger publication are likely to attract commercial partners
in the development cycle than other organizations. In order for biotechnology
to gain partnership they should be able to demonstrate excitement to other firm
and be able to show their potentials.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

Given the importance of accessing complementary resources
and sincerity for biotechnology firms, they would expect partners who are able
to offer them a better resource and knowledge benefactions, as well as legitimacy
benefits. These help to calculate and motivate subset of those underling
biotech firm choices of partners (Sytch, Maxim and Bubenzer 2008). Study shows
that biotechnology industry is more likely to collaborate if their founders
have graduated from the same University institution (Sytch, Maxim and Bubenzer
2008). It’s a sense of sharing identities, and does not really reflect a direct
social between scientists. Biotechnology firm tend to find partners that are based
on their similarities, because workers have the same responsibilities and
expectations according to their work.

Biotechnology alliances can be extremity helpful on the development
of new drugs and medicine to help the need of the world. They are able to
display more stuffs in the market, not also for the healthcare but also
agricultural were companies can display more genetic foods for those country like
Canada since the population is higher than the agricultural system. However,
collaboration between biotechnology industries can be difficult because each
firm has their own way of creating products and so the use of diverse techniques
may also differ from each other.

 Collaboration can be
defined as the practice through which a firm establishes a relationship with an
external organization in the purpose of improving the performance of its
processes. Developing a product in biotechnology is risk and costly so firms
seek to share their risk and costs of innovation through strategic partnership (Whitehead
2003). Many companies collaborate with different company to accomplish their
innovative goals. Strategic alliances provide a platform for organizational leaning
giving partners a good access of new knowledge. Through problem solving, share
decision making, mutual interdependence, firm can learn this entire thing with
their partners. External collaboration may lead to even higher innovation performance
in the biotechnology industry.

Finance debt is generally unsuitable for biotechnology firms
in the early stages. Banks are commercial entities that are seeking to make
profit. The loans that they give only gives them 3 per cent margin and with a
40 per cent failure rate in start-up companies. Banks want to see a high income
coming from your existing company before they even agree to loan because they
just want to make sure that you are able to pay the interest rate (Whitehead
2003). Investor might find difficult to put all their investment to a start-up
biotechnology company because the risks of failure rate are high especially in
the UK.
As a start-up biotechnology company all over the world you are competing not
just with the direct commercial competitor, but also against all the other
thousands companies trying over themselves to convince the number of investors
that their respective company is better investment than yours. These is the
hardest part in start-up the business because you will have to fight over
company and make investors inclined to choose you rather than other companies. However,
biotechnology companies quickly create high profit within the workforce and
sales techniques.

Investors all over the world measure the extent to which
potential investors are willing to take investment risk (IBISWorld 2017). Biotechnology
companies have a high rate of failure, making some industry risky for
investors. So if investor confidence increases, they will be more likely to fund
new biotech start-up (IBISWorld 2017). Furthermore, private investors mostly
invest only 5-19 per cent of the total investment portfolio into risky start-up
companies such biotechnology (Whitehead 2003).  It does take an extraordinary set of
circumstances to create a biotechnology business start-up, since it’s important
to understand the active of varieties characteristics such as, scientific
knowledge and understanding the investment opportunities. Investors need to
have enough money to be able to afford the high costs of biotechnology (Whitehead
2003).

Among the various biotechnology sector healthcare is
considered one of the most significant domains and has the higher number of
firm, since agriculture and industrial biotech activities are considered small
in the number of firms (Sytch, Maxim and Bubenzer 2008).  Biotech in medicine has led to a series of
important development in several subfields, such as therapeutics, diagnostics
and nanobiotechnology (Sytch, Maxim and Bubenzer 2008). In the therapeutics area
of biotechnology, human insulin genetically modified bacteria was one of the
first biotech drug produced in 1983. Since then more products wore displayed in
the market such as, vaccines, drugs and advanced therapies. All new therapies
and drugs in development for the future will originate from biotechnology and
the quantity is growing in the most innovative treatments. Millions of patient
who suffer from horrible disease finds the biotech drugs treatment a cure. Healthcare
is the key player in terms of biotechnology, with the test of human trials, the
approval of FDA, marketing and the distribution to customers (Whitehead 2003)
lots of people are been saved from different types of disease such as cancer
and other.

In the past few years Biotechnology has been the fastest
growing for many major industries and has drawn lots of attention recently,
were everyone is talking about it. In social media, meeting and people from
different part of the world gather and discuss about biotechnology. Us the time
goes by Biotechnology are getting more into our lives and it seems that all the
aspects of our lives are determined by Biotechnology. Biotechnology gave a
massive contribution in our lives in diverse activities from healthcare,
agricultural and industrial biotechnology (Sytch, Maxim and Bubenzer 2008). It
has unlimited potential to help us within our lives. Biotechnology usually uses
biological products or living materials (DNA) to create new incredible products
making them better and perfect like, resistant crops, vegetables and higher
milk producing animals. Genetic manipulation has been the primary reason that
biology is now seen as the science of the future and biotechnology as one of
the world leading industries.

Biology and technology is a combined term of Biotechnology
in which the name suggests the assembly of science of biology. It’s commonly
considered a band of technologies that deals with genetics, molecular and the
use of microorganism or other industrial biological substances to make the
manufacturing process. Biotechnology is important in our lives because it help
improve food quality and also has applications in in manufacturing. It’s most
important in health and medicine, giving the world cure and better life. In
this essay I will explain the importance of Biotechnology, the different sector
in the industry, how firms start-up a biotech industry and the way they choose
their innovative partners.

 

Biotechnology and Innovation