How do university IPRs and R&D funding mechanisms affect innovation performance in the healthcare biotechnology industry? Evidence from Europe and the USA

This paper analyses determinants of innovation performance in the healthcare biotechnology industry to develop propositions for the future development of this growth-accelerating sector. We use empirical data to point to specific differences in this domain between Europe and USA. We build from a body of literature investigating the historical development of the industry, its expansion to new entities and new scientific fields and the role of different sources of funding of biomedical commercialization process. We use the theory of innovative enterprise and the "maximizing shareholder value" concept to elucidate determinants of biotechnology innovation performance. Our findings point to the weaknesses of the highly monetized US business model given the tendencies of the European biotechnology industry to emulate this model. We provide implications directed to facilitating sustainable growth of the sector.