Innovative Scope in Biotech Business – Effects of aligning partner types with the firm’s science base*

Using patent data on Scandinavian Biotech firms together with firm level data, this paper explores factors driving the innovative scope of biotech firms. Collaborating with pharmaceutical firms, universities and dedicated biotech firms proves beneficiary in introducing innovations broadening the firm's innovation scope. Contrasting large and small molecules firms exhibit noteworthy differences in the type of collaboration partner that allows the firm to expand its innovative scope. This suggests partner type needs to be aligned with the firm s science base before collaboration produces steep innovation. Additionally, we find that outsourcing and acquisition of innovations increase their scope