This study examines the relationships among R&D intensity, innovation measures, and business performance in the Canadian biotechnology industry, which experienced rapid growth in the number of firms and revenues between 1994 and 1997. A sample of 74 biotechnology companies in Canada is used for the analysis (the response rate of the postal questionnaire survey was 23.8%). In addition, geographic variations in barriers affecting innovation and factors influencing the business performance of biotechnology firms are analyzed. Results of the study show that R&D intensity correlates with patent measures, while innovation measured in terms of new product introductions is associated with business performance. Canadian firms attribute their business performance to internal advantages to a greater extent than external factors. The Canadian regulatory process is the greatest barrier to innovation. This study shows that while R&D and scientific breakthroughs drive innovation in the biotechnology industry, market demand plays a critical role in business performance of firms.
ASJC Scopus subject areas
- Management of Technology and Innovation