Dynamics in business models: An empirical analysis of medical biotechnology firms in the Netherlands

In this paper, business models of Dutch dedicated biotechnology firms (DBFs) that are active in the field of medical biotechnology are examined. The focus is on the dynamics in business models within the Dutch population and the mechanisms that generate these dynamics. Furthermore, we propose a value-added sequence of the business model of a firm over time and examine if this sequence is found in the population of the Dutch DBFs. We focus on the business models at founding and the shifts that occurred in these business models afterwards. Therefore, data on a survey completed by 80 Dutch DBFs was used together with longitudinal data on shifts in business models of four case studies.We show that both the generation of new firms, due to shifts in the dominating business model at founding over time, and shifts in business models after founding contribute to the dynamics in business models within this population.