| | | | | areas within one industry. According to some, the |
| One of the biotechs was Repligen, a Cambridge, | | | | science base represents a magnet for information |
| Massachusetts, firm (founded in 1981) that specialized | | | | technology and biotechnology business. Colleges and |
| in efforts to develop treatments for cancer and | | | | universities with a high rate of generating significant |
| inflammation, as well as AIDS. Typical in several | | | | innovations like University of California Medical School, |
| regards of the new pattern of R&D was the | | | | San Francisco in medical research and Stanford in IT |
| experience of the Merck Research Laboratories | | | | and biotechnology, can be considered as bases upon |
| (MRL). While pursuing in-house research, the firm also | | | | which commercialization of new knowledge is built. |
| worked with two biotech companies on alternative | | | | Logically, because scientific output represents an |
| approaches to HIV prevention with a vaccine or | | | | economic value it attracts both venture capital and |
| treatment. Later, Merck collaborated with | | | | pharmaceutical companies who have an interest in |
| MedImmune, Inc., a Maryland biotech, in an attempt | | | | both utilizing the knowledge but also protecting their |
| to use that firm's monoclonal antibodies as a means | | | | investment by placing their managers in the start-ups |
| of preventing HIV infection. The Merck/Repligen | | | | or acquired firms. In addition, small companies, |
| combination at first produced some promising results, | | | | especially in highly knowledge-driven industries, |
| but neither the vaccine research nor the explorations | | | | depend heavily on social capital (Cooke and Wills |
| of monoclonal antibodies proved fruitful. Meanwhile, | | | | 1999). |
| MRL's in-house research was successful in developing | | | | Therefore, small innovative firms benefit from |
| a novel antiretroviral therapy, Crixivan (indinavir). | | | | intellectual, technological and social "spillovers" based |
| However, some researchers remained unconvinced | | | | on network collaborations with other entrepreneurs, |
| with the results from such collaborations, because as | | | | other scientists, financiers and companies in the same |
| Galambos and Sturchio assert, large pharma has | | | | industry and with comparable mindsets to |
| no real absorptive capacity to completely benefit | | | | themselves. Unlike Galambos and Sturchio or other |
| from a strategy of merging with dedicated | | | | opposing specialists, Teece in regard to biochemical |
| biotechnology firms. | | | | industry offered a term of strategic alliances |
| Opposing to the view of Galambos and Sturchio, | | | | or alliances in which both parties, in this case large |
| other experts present several reasons to why large | | | | pharmaceutical company and start-up research |
| corporations successfully collaborate in innovation | | | | laboratory share their complementary assets. |