NETWORKS AND ALLIANCES IN BIOTECHNOLOGY
Introduction
Biotechnology is the process of using living cells, which include yeast, algae and much more to generate industrial products. This process also uses components of the cell such as enzymes. Industrial biotechnology, therefore, has a broad range of uses. The biotechnology industry, therefore, is all practices that use a biological approach to developing a product in need (Ranada, 2003, p10). Since 1953 when the DNA was discovered and later the realization of DNA as genetic matter in the lifecycle, there has been remarkable progress in the whole biotechnology field (Sytch, and Bubenzer, 2008, p120). Biotechnology has a broad application such as nutrition alterations, genetic study and replicating, human and animal well-being, medicines and the surrounding. This paper will explore the biotechnology industry and the various subsectors within this industry and the latent sources of external financial support for biotechnology startups. The paper will also discuss the reasons behind the collaboration between the biotechnology firms with external partners for innovation and the strategies involved in choosing these external partners.
Biotechnology Industry
Biotechnology in simple terms, it can be defined as expertise based on biology. It connects bimolecular progressions to build up products that can aid to advance our lives. It involves the utilization of systems in light of living frameworks—plants, creatures, or microorganisms, for making the product. Biotech is an advantageous interaction of science/science and innovation/designing. It has influenced the entire parts of human life. It has rearranged enterprises, definitely changed medicinal services, improved nature, and encouraged to the fundamental transformation in-laws and ethical standards. Human beings have used the biology of microorganisms for a long time to make products that they use for many different purposes. The present day biotech industry has made expensive, exceptionally gainful modern outlets of awesome esteem to society, for example, aging, sustenance businesses; the alteration of plants, microorganisms, what's more, cultivated creatures for enhanced nourishment generation; enhanced plant and creature rearing; and natural remediation and security.
Sub Sectors
Agriculture: Agricultural biotechnology is one of the significant parts of the biotechnology industry. Horticulture is the areas which people require every day because of the creation of nourishment which is required sustenance forever. Biotechnology enhances sustenance quality and generation and also the modernization of plants, creatures, and microorganisms. Due to science progression, look into by USDA has demonstrated rural practices are among significant recipients of biotechnology around the world. USDA has bolstered the utilization of biotechnology to address the issue for the ranch items. The control is made to guarantee that items have just beneficial outcomes on human and creature wellbeing. Wellbeing measures are taken which incorporate security of pesticides on homesteads, sustain devoured by creatures and people. The driving exporter of agrarian items is the United States (Ranade, 2008 pg 7).
Pharmaceutical: Biopharmaceuticals mind boggling natural particles which alluded to as proteins. They go for checking hidden systems in ailment treatment. Pharmaceutical Biotechnology businesses have a general utilization of the recombinant DNA innovation to concoct new and more productive medications. Recombinant DNA innovation includes alteration of cells' hereditary qualities to make the coveted biotechnological items field. The pharmaceutical plans depend on organizing atoms in a way that they will be more dynamic drugs. The unpredictable particles made all the while, are normally expensive subsequently, and are taken by the patients by infusion and not the oral solution. The ordinary pharmaceutical biotechnology items incorporate Antibodies and Proteins.
Environment: Biotechnology likewise has an awesome part in an environment like in water treatment and reusing of materials. Nature has been corrupting at a high rate thus requiring the utilization of the best techniques to check contamination. With the synchronous increment in innovation, our surroundings have imperiled, and the general wellbeing has turned into a significant concern around the world. The real wellsprings of contamination are ventures and also farms. Bioremediation is a procedure of utilizing microorganisms to frustrate the natural contaminations utilizing organisms.
Sources of External Funds
Angel Investors: They fund both private and public firms. Because of their high experience, they exceptionally suggested as a capital hotspot for organizations (Schilling, 2013, np). When you wander, the Angel Investors should gain a little control of the firm share. It may be a justifiable reason motivation behind why they are an authentic source as they are a piece of the business (Whitehead, 2003 pg 242).
Bank Loans: They are normally the fundamental wellspring of the capital in most of the organizations. It is simpler to get bank credit paying little heed to the span of the firm. A similar way, one can get enough income for the Biotechnology Company. The financial specialist should too know about the enthusiasm accumulating amid the reimbursement period (Whitehead, 2003 pg 245).
Government: The government is such a great amount of worried with the improvement of its general public and environs. Capabilities for the government grants rely on upon the measure of capital that a firm is in need. There are gifts accessible for various classifications of organizations which thus manage the sum the government will give the one (Maxim Sytch, 2008 pg 106).
Collaboration with External
A few organizations, for the most part, the babies in the business, may ensure an absence of assets to bolster innovative work of medication amid innovative work organize there is no pay to the organization. It is likewise questionable to decide the plausible profit of the biotechnology organizations in contrast with organizations as of now offering their items. The new organizations need to team up with other associations to have the capacity to create contending and all around investigated items. The vast majority of the teammates are more prepared and willing to bolster inquire about for medications than antibodies since the previous utilize persistent while the last utilized now and again or only one time. Different organizations like to have numerous items in the improvement arrange and subsequently requiring a great deal of cash. Such move helps the organization in that if a portion of the items not endorsed in the market, the foundation will recuperate its cash from different items that were under research (Schilling, 2013 pg 9).
Choosing of innovation partners by biotechnology firms
With the current globalization in the business environment, industries are no longer increasing innovations in a vacuum but they are rather working with partners across the world so as to develop innovative strategies as well as products. This strategic partnership has also been implemented in the biotechnology firms with a goal of gaining a grip in the current high-cost and high-risk firms. Choosing process of the strategic partnership is quite essential in the biotechnological firms since the industry requires an accessible knowledge, civil resources as well as authenticity. Therefore, in the selection process in the biotechnological industry, the firm is required to first carry out an identification process. This process involves the identification of the alliance or strategic partners who are resourceful and knowledgeable and who can readily offer knowledge bequest, resources as well as better-quality authenticity benefits into the industry thus bringing about success f the entire industry. The industry also identifies potential partners through calculative motives analysis where they are able to come up with a subset of only those biotechnology firms that the company needs to choose from. Basically, most of these firms share a common similarity which enhances mutual trust building and co-recognition and this increases their chances of partnering. Some of the biotech firms tend to choose their partners based on the shared identity as the founders of these firms graduated from the same organization (Schilling 2013 pg 7). In simple terms, partnerships of the biotechnology firms involve a contractual agreement under which the biotechnology firm carries out specified research funded by the established firm and licenses the guarantor to develop, produce and market products that integrate the research results in return for a royalty on the net goods sale. The partnership is established between two biotechnology firms that contribute to its research results and is capable of financing and providing for resources in manufacturing, distribution and in the marketing of the innovated product. This allows for a strong partnership and hence more innovation of products in the biotechnology firm. Research alliances are therefore a source of many innovative ideas in the biotechnology industry. The strength of this partnership relies on the ability of the collaborating industries to solve scientific, technical problems as well as ability to resolve leadership and organizational challenges. Thus there is an increasing trend in the direction of non-exclusive agreements wherein biotechnology firms retains the right of co-promotion as well as co-marketing (Ranade 2008 pg 22).
Conclusion
In conclusion, biotechnology has a promising future. In the future, biotechnology will be recognized for some revolutionary technology. In the near future, biotechnology is predicted to have a significant in the economy since it is a big tool to solving some major global complications such as fatal disease, global epidemics, and the uncontrolled rise of petroleum fuel crisis, global warming and most importantly, poverty. Despite all the positive effects resulting from biotechnology, some side effects may come with it. Ecological hazards that could come with biochemical innovation that could be caused by transgenic organisms are unknown. Some people have argued that some of the transgenic organisms could be used to develop lethal bioweapons. Therefore, this poses a great danger in the event that these transgenic organisms fall into the wrong hands and be used for massive destruction. The antagonists of biotechnology science argue that the science is still very young and that it needs more research before it is fully perfected. The track from a test tube to the field is not a straightforward walkthrough. Both financial and intellectual resources need to be comprehended and taken into much consideration before new innovations make their way into industrial applications. Despite all implications that come along with biotechnology, the science has proved to be extremely productive and therefore, recent times should be time for biotechnology innovation. Collaboration between biotechnology firms and external alliances has proven to be the current trend in this industry due to the globalization. However, there has been an increase in innovation due to the sharing of high costs and the high risk associated with innovation.
References
Maxim Sytch, P. B., 2008. Research on Strategic Alliances in Biotechnology: An Assessment and Review. Springer, New York: Handbook of Bioentrepreneurship.
Ranade, V., 2008. Early-stage valuation in the biotechnology industry.
Available at: https://fsi.stanford.edu/sites/default/files/Ranade_FINAL_Feb_2008.pdf
Schilling, M. A., 2013. Strategic management of technological innovation. 4 ed. New York: Tata McGraw-Hill Education.
Whitehead, G., 2003. Early stage and seed financing for biotechnology start-ups: A UK perspective. Journal of Commercial Biotechnology, 9(3).
