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This book offers a novel insight into the economic dynamics of modern biotechnology, using examples from Europe to reflect global trends. The authors apply theoretical insight to a fundamental enigma of the modern learning society, namely, how and why the development of knowledge and ideas interact with market processes and the formation of industries and firms. This book offers new empirical evidence to address such questions by studying the diversity of biotechnology in Europe. By analysing the way in which the development of new knowledge and information is linked with economic transformation, the authors are able to provide a rich theoretical understanding of the economic dynamics of knowledge within the biotechnology sector. They clearly show how innovation opportunities are affected not just by the market, but by scientific developments, networks, institutions and government policy. They also raise important theoretical questions about how and why new industries, networks and organizations are shaped, and highlight the development and impacts of biotechnology on many existing sectors, including pharmaceuticals, agriculture and insurance. The final chapter summarizes the theoretical challenges which have been overcome and identifies future areas for research.The Economic Dynamics of Modern Biotechnology will become essential reading for students, scholars and researchers of the management and economics of innovation, business strategy, industrial organization, the theory of the firm, the economics of technological change, and regional studies. It will also appeal to a wider political and business audience such as government policymakers and managers of biotechnology firms.

Edited by Maureen McKelvey, Professor of Industrial Management, School of Business, Economics and Law, University of Gothenburg, Annika Rickne, Professor, Royal Institute of Technology and Jens Laage-Hellman, Associate Professor, Department of Technology Management and Economics, Chalmers University of Technology, Sweden

Introduction
3
Conceptualizing and measuring modern biotechnology
20
Setting the scene
41
Stylized facts about innovation processes in modern biotechnology
43
The postgenome era rupture in the organization of the life science industry?
76
An overview of biotechnology innovation in Europe firms demand government policy and research
99
Challenging the existing
133
Risk management and the commercialization of human genetic testing in the UK
135
Emergent bioinformatics and newly distributed innovation processes
235
Forming the new
263
The dynamics of regional specialization in modern biotechnology comparing two regions in Sweden and two regions in Australia 19772001
265
On the spatial dimension of firm formation
295
Examining the marketplace for ideas how local are Europes biotechnology clusters?
326
Creation and growth of hightech SMEs the role of the local environment
356
Conclusions
393
Reflections and ways forward
395
Networks and technology systems in sciencedriven fields the case of European food biotechnology
167
Future imperfect the response of the insurance industry to the emergence of predictive genetic testing
207
Index
407
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