Identifying and Ranking of Critical Success Factors for Biotech Start-ups- An Empirical Study of Biotechnology Firms in Sweden

Nowadays, high-technology-new-ventures have a significant effect on economic growth of developed countries and are considered to have a high rate of return on investment (ROI). For instance, in Sweden, policy makers, venture capitalists (VCs) and academia have paid a special attention to biotechnology and information technology (IT). These high-tech industries are considered to increase the national competitiveness and create opportunities for employment. Despite the fact that many empirical studies investigated the business aspects of these industries in Sweden, still a few number of firm-level studies focused specifically on biotech industry to investigate the critical success factors for biotech firms in Sweden. In fact, this study was carried out in order to better understand the economic, dynamic and managerial characteristics of an industry which is recognized as being highly risky and uncertain. The study departed from understanding the definitions regarding to what is meant by biotechnology industry and exploring the current state of this industry both globally and nationwide in Sweden. On the next step, a thorough analysis of literature carried out to figure out dynamics of this industry. Based on in-depth literature review, we identified five main factors which are critical for success of biotech firms including a number of criteria under each factor. To achieve the objectives of the study, a questionnaire survey was designed and sent to a number of active biotech firms. We asked top managers in these firms to participate in a web-based survey and express their attitudes towards the significance of each criterion based on a five-point Likert scale. Later, by means of mathematical model and statistical analysis tool, we prioritized and ranked each factor and belonging criteria. The results of this study revealed five main categories for critical success factors consisting of competencies that are distinct and different with the following priority: 1) Managerial and Human Capital; 2) Knowledge Assets; 3) Funding and Financial; 4) Alliances and Networking; and 5) Location and Market factor. Under each of these categories a number of criteria have been perceived and prioritized based on the significance for success. Besides, a comparative study was conducted between start-ups and established firms in our study, to investigate the differences in perceived significance of each factor for these two firm types