Title: Clustering in the biotechnology industry

Authors: Stuart O. Schweitzer, Judith Connell, Fredric P. Schoenberg

Addresses: Department of Health Services, UCLA School of Public Health, Los Angeles, CA 90095, USA. ' Department of Health Services, UCLA School of Public Health, Los Angeles, CA 90095, USA. ' Department of Statistics, UCLA, Los Angeles, CA, USA

Abstract: This study uses Poisson regression techniques to analyse the location of biotechnology companies throughout the USA. Three hypotheses are considered: that firms locate in population centres in order to attract workers, that they locate near colleges and universities where potential workers are likely to be better educated, and that they locate in close proximity to research-orientated universities and institutes because high-technology firms frequently spin-off from these research centres. We find that clusters do tend to be located near population centres and colleges and universities, but the influence of research-based universities is particularly striking. This highlights a powerful policy instrument for regions hoping to promote high-tech industrial clusters: the creation and maintenance of a first-rate research-orientated university. Although these ideas have been suggested in the past, our approach to defining, measuring, and analysing these variables provides new insights into their significance, as well as suggesting avenues for future research.

Keywords: biotechnology companies; location; industrial clusters; universities; research centres; high-technology firms.

DOI: 10.1504/IJHTM.2006.010416

International Journal of Healthcare Technology and Management, 2006 Vol.7 No.6, pp.554 - 566

Published online: 20 Jul 2006 *

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