Variability in organisational forms of biotechnology firms

This paper examines the variability of organisational forms in terms of forward and backward networking versus vertical integration in biotechnology SMEs. The study examines forms of organisation in a set of firms across application segments. The forms of organisation vary by application segment in biotechnology, but differences are not clear-cut, and a firm can apply different forms to different application segments in its activities. The reasons for this variability are related to the stringency of the regulatory approval systems, technological risks, and the costs of building full-scale manufacturing facilities which influence funding needs and thus also the choice of organisational form. The paper finally discusses the notion of networking as a separate form of organisation of economic activity and the extent of its applicability to biotechnology.