Networks and alliances in biotechnology

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Biotechnology industry is among the industries that have the highest rates of alliance formation. In 1988, Ernest & Young reported that more than 70% of the US biotechnology firms were involved in strategic alliances and on average, each firm had 10 partners.

Indeed, OECD statistics also show that based on a literature-based survey (reports from newspaper, trade journals, etc.), the number of alliances has increased from 45 in 1990 to 526 in 2006. Therefore, in this essay assignment, I would like you to explore further the networks and alliances in the biotech industry. In your essay, please answer the following research questions:

1.  Describe the biotechnology industry. What are the sub-sectors within the biotechnology industry and which one is the most important?
2.  What are the potential sources of external funding for biotechnology start-ups?
3.  Why do biotechnology firms collaborate with external partners for innovation
4. How do biotechnology firms choose their innovation partners?

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