Biotechnology spin-outs at the University of Otago: Networks for growth

University spin-outs are increasing in economic importance; yet the process by which these firms develop remains only partially understood. This is a study of four biotechnology spin-outs from the University of Otago in Dunedin, New Zealand. Their lack of resources curtails the extent of their growth. They cannot devote their limited resources to basic science. Moreover, they lack the resources to become involved in the sales and marketing of their products. They must operate in a valley, using scientific research conducted externally to develop commercially-viable products, then passing them off to other companies to distribute. For this reason, networks and alliances with other firms and organisations are essential for the successful growth and development of the university spin-off.