Title: Financing innovation: venture capital investments in biotechnology firms

Authors: Matteo Rossi; Alkis Thrassou; Demetris Vrontis

Addresses: University of Sannio, Via delle Puglie, 82 Benevento, Italy. ' School of Business, University of Nicosia, 46 Makedonitissas Ave., P.O. Box 24005, 1700 Nicosia, Cyprus. ' School of Business, University of Nicosia, 46 Makedonitissas Ave., P.O. Box 24005, 1700 Nicosia, Cyprus

Abstract: This secondary data-based research defines and describes the role of venture capital (VC) in the financing of the innovation system of the biotech industry; with a special focus on Italy. The research further analyses the international and Italian biotech industry and verifies the correlation between VC and value creation for biotech firms. Its value stems from the fact that it defines and helps in the comprehension of the link between the biotech industry and particular risk capital investors (VCs); while providing a context of prescriptive actions and processes and a valuable theoretical basis for empirical development and practical application. The findings show that Italian biotech companies have become an established industrial reality, capable of maximising investments in terms of value creation, portraying internationally competitive scientific excellence, with valuable links to academia, and innovative in spirit. For biotech companies, especially Italian ones, VC appears to be a factor of growth and success, with all evidence indicating that the amalgam of VC and biotech companies sums up to more than its constituent parts. It is also presumed that it is the very differences in their organisational competencies and drivers that lead to success.

Keywords: venture capital investment; biotechnology firms; financing innovation; Italy; technology; value creation; capitalisation; strategic marketing; innovative product developments; biotech industry.

DOI: 10.1504/IJTMKT.2011.045914

International Journal of Technology Marketing, 2011 Vol.6 No.4, pp.355 - 377

Received: 08 May 2021
Accepted: 12 May 2021

Published online: 13 Mar 2012 *

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