scholarly journals Government R&D Subsidy and Additionality of Biotechnology Firms: The Case of the South Korean Biotechnology Industry

2019 ◽  
Vol 11 (6) ◽  
pp. 1583 ◽  
Author(s):  
Kwangsoo Shin ◽  
Minkyung Choy ◽  
Chul Lee ◽  
Gunno Park
Keyword(s):  
Financial Performance ◽  
Technological Innovation ◽  
Strategic Alliances ◽  
Biotechnology Industry ◽  
External Financing ◽  
Biotechnology Firms ◽  
South Korean ◽  
Biotechnology Companies ◽  
Start Ups ◽  
D Investment

Government research and development (R&D) subsidies are more important in countries that are latecomers to the biotechnology industry, where venture capital has not been developed, and the ratio of start-ups is high. Previous studies have mostly focused on the additionality of the input and output through government R&D subsidies, such as private R&D investment, technological innovation, and financial performance. In addition, some studies have focused on the behavioral additionality (the change in a firm’s behavior) of firms through government R&D subsidies. However, each study is fragmented and does not provide integrated results and implications. Therefore, this study comprehensively investigated the effects of government R&D subsidies on the multifaceted aspects of input, output, and behavioral additionality based on data from South Korean biotechnology companies. This study used the propensity score matching (PSM) method to prevent selection bias. The results showed that firms benefiting from government R&D subsidies had a markedly higher R&D investment in terms of input additionality, and they produced more technological innovation within a shorter period in terms of output additionality, though financial performance was not determined. Moreover, government R&D subsidies have accelerated strategic alliances and suppressed external financing (debt financing) in terms of behavioral additionality.

scholarly journals External Financing, R&D Intensity, and Firm Value in Biotechnology Companies

2019 ◽  
Vol 11 (15) ◽  
pp. 4141 ◽  
Author(s):  
Namryoung Lee ◽  
Jaehong Lee
Keyword(s):  
Firm Value ◽  
Biotechnology Industry ◽  
Debt Financing ◽  
External Financing ◽  
Commercial Success ◽  
Financing Decisions ◽  
Biotechnology Firms ◽  
Debt Market ◽  
Biotechnology Companies ◽  
The Relationship

Focusing on biotechnology firms, this study analyzes the relationship between the level of intensity of the research and development (R&D) conducted by a firm, the debt financing decisions the firm makes, and the overall value of the firm. The data presented shows that, although most firms are unlikely to acquire financing from the debt market, the opposite is true for firms in the biotechnology industry. One reason for this divergence may be the belief among biotechnology firms that their future commercial success depends on their ability to develop new products, resulting in a strategy of intense R&D. Furthermore, an examination of firm values reveals that while most firm values are negatively correlated with leverage and R&D intensity, biotechnology firm values show no such correlation, implying that biotechnology firms prioritize sustainable commercial success no matter the source of financing.

scholarly journals Riding the Biotechnology Wave: A Mixed-Methods Analysis of Malaysia's Emerging Biotechnology Industry

2021 ◽  
Author(s):  
◽  
Melvyn Wei Ming Loh
Keyword(s):  
Mixed Methods ◽  
Strategic Alliances ◽  
Qualitative Interviews ◽  
Strong Support ◽  
Value Added ◽  
Biotechnology Industry ◽  
Factor Endowments ◽  
Biotechnology Companies ◽  
The Government ◽  
Conducting Research

<p>Building a sustainable bioeconomy requires strategic alliances, intellectual property,funding and talent. The research focus of this empirical study was to assess Malaysian biotechnology companies regarding their opinions on priorities and capabilities necessary to establish a thriving bioeconomy. The research questions that form the basis of this paper explore the extent to which initial factor endowments affect the trajectory of biotechnology industry development and how Malaysia should prioritise, mobilise and coordinate resources to build a bioeconomy. A mixed methods approach using qualitative interviews and case studies, as well as a quantitative survey, indicated that respondents advocated a resource-based-view in terms of resource allocation and agglomeration towards building Malaysia's bioecnomy. That is, there was strong support to leverage Malaysia's existing capabilities in agriculture and biofuels to derive value-added products towards gaining leadership positions in these respective biotechnology sectors globally. Access to funding and talent emerged as the highest priority capabilities necessary for commercialising discoveries, conducting research and development and accelerating innovation. Respondents perceived the government as having a 'very important' role in building and accelerating the Malaysian biotechnology industry. The gap between required capabilities and strategic priorities provides a framework within which the government may play a central role in coordinate, accelerating and resourcing Malaysia's nascent bioeconomy.</p>

scholarly journals How Does R&D Investment Affect the Financial Performance of Cultural and Creative Enterprises? The Moderating Effect of Actual Controller

2019 ◽  
Vol 11 (2) ◽  
pp. 297 ◽  
Author(s):  
Zhipeng Zang ◽  
Qiwei Zhu ◽  
Helena Mogorrón-Guerrero
Keyword(s):  
Financial Performance ◽  
Technological Innovation ◽  
Local Governments ◽  
Central Government ◽  
Moderating Effect ◽  
Short Term ◽  
D Investment ◽  
Positive Impacts

R&D investment has a sophisticated correlation with the financial performance of cultural and creative enterprises. In this study, using the panel data of listed cultural and creative enterprises in China from 2011 to 2013, we found that R&D investment has positive impacts on financial performance in both the current and the lag periods. However, these positive impacts are moderated by actual controllers. More specifically, there is a positive moderating effect on enterprises’ financial performance when the central government is the actual controller. On the other hand, there is no evident effect when the actual controller is a local government or a state-owned enterprise, and there is a clear negative moderating effect on financial performance when a natural person is the actual controller. Given these findings, we argue that local governments and state-owned enterprises should improve their long-term strategies for the cultural and creative enterprises they control and reduce actions forced by short-term economic goals. Additionally, local governments and state-owned enterprises should fundamentally stress the role of R&D in order to handle the pressure of increasingly keen competition from international companies’ technological innovation programs.

The financial ecosystem available to early-stage biotechnology firms and its misalignment with interests of these firms, of the biotechnology industry and with global disease burden

2013 ◽  
Vol 19 (2) ◽  
Author(s):  
Gergely Toth
Keyword(s):  
Pharmaceutical Industry ◽  
Disease Burden ◽  
Early Stage ◽  
Biotechnology Industry ◽  
Market System ◽  
Biotechnology Firms ◽  
Early State ◽  
Innovative Therapies ◽  
Biotechnology Companies ◽  
Global Disease Burden

The development and commercialization of new therapeutics have had immense impact on the quality and length of human life.  Nevertheless, the biotechnology and the pharmaceutical industry have evolved to be driven mostly by a profit oriented market system, in which distinct stakeholders interact with different motivations to make the development and commercialization of therapeutics a reality.  This study discusses the funding ecosystem available for early-stage biotechnology companies and its influence on the their strategic business objectives and on the biotechnology industry.  On the basis of this, distinct paradoxes in the funding ecosystem are uncovered, which suggest that the present ecosystem is not well aligned with the interests of these biotechnology firms, the biotechnology industry, and it neglects strategic disease burden needs. It is recommended that even partial resolution of these paradoxes will enable further growth in the industry and lead to more innovative therapies for untreatable diseases with large social and economic burdens.  In light of this, the study proposes improvements of financing approaches and an increase of available capital in the funding ecosystem of early-state biotechnology companies.

scholarly journals Riding the Biotechnology Wave: A Mixed-Methods Analysis of Malaysia's Emerging Biotechnology Industry

2021 ◽  
Author(s):  
◽  
Melvyn Wei Ming Loh
Keyword(s):  
Mixed Methods ◽  
Strategic Alliances ◽  
Qualitative Interviews ◽  
Strong Support ◽  
Value Added ◽  
Biotechnology Industry ◽  
Factor Endowments ◽  
Biotechnology Companies ◽  
The Government ◽  
Conducting Research

<p>Building a sustainable bioeconomy requires strategic alliances, intellectual property,funding and talent. The research focus of this empirical study was to assess Malaysian biotechnology companies regarding their opinions on priorities and capabilities necessary to establish a thriving bioeconomy. The research questions that form the basis of this paper explore the extent to which initial factor endowments affect the trajectory of biotechnology industry development and how Malaysia should prioritise, mobilise and coordinate resources to build a bioeconomy. A mixed methods approach using qualitative interviews and case studies, as well as a quantitative survey, indicated that respondents advocated a resource-based-view in terms of resource allocation and agglomeration towards building Malaysia's bioecnomy. That is, there was strong support to leverage Malaysia's existing capabilities in agriculture and biofuels to derive value-added products towards gaining leadership positions in these respective biotechnology sectors globally. Access to funding and talent emerged as the highest priority capabilities necessary for commercialising discoveries, conducting research and development and accelerating innovation. Respondents perceived the government as having a 'very important' role in building and accelerating the Malaysian biotechnology industry. The gap between required capabilities and strategic priorities provides a framework within which the government may play a central role in coordinate, accelerating and resourcing Malaysia's nascent bioeconomy.</p>

The Biotechnology Industry

1998 ◽  
Vol 11 (1) ◽  
pp. 13-18
Author(s):  
Ronald P. Evens
Keyword(s):  
Strategic Alliances ◽  
Recombinant Dna ◽  
Marketing Research ◽  
Biotechnology Industry ◽  
Pharmaceutical Companies ◽  
Research Development ◽  
Recombinant Dna Technology ◽  
Sales And Marketing ◽  
Biotechnology Companies ◽  
Growth And Change

Growth and change are the hallmarks of the developing biotechnology industry. Since the first approval of a biological product in 1982, over 40 biologicals, many of them medical breakthroughs, have been brought to market. The majority of biotechnology companies focus on developing human therapeutic agents, but about 25 percent of biotechnology companies focus on the diagnostic area, using monoclonal antibody technology, polymerase chain reaction (PCR) technology, and genetics to provide advances in diagnosis and disease monitoring. Structurally, few biotechnology firms are fully integrated companies with full capabilities in research, development, manufacturing, and sales and marketing. Many pursue strategic alliances with other companies to enhance their capabilities in research, development, and sales and marketing. Research alliances between companies and universities are also frequently used to enhance research capabilities. As the industry has matured, consolidation has occurred, with major pharmaceutical companies purchasing biotechnology companies and biotechnology companies merging to expand their capabilities. Research investment, as a percentage of gross sales, continues to be very high for biotechnology companies compared with traditional pharmaceutical companies. The cost of drug development is high, but the probability of approval appears to be somewhat better in the biotechnology field compared with traditional pharmaceuticals. Today, the biotechnology product pipeline is rich, with between 400 to 700 products in various stages of clinical development. Technology developments beyond recombinant DNA technology and monoclonal antibodies, such as antisense, genomics, and combinatorial chemistry, will lead to additional therapeutic and diagnostic breakthroughs.

scholarly journals R&D Investment, Financial and Environmental Performance Nexuses via Bootstrap Fourier Quantiles Granger Causality Test

Economies ◽  
2021 ◽  
Vol 9 (2) ◽  
pp. 85
Author(s):  
Feng-Li Lin
Keyword(s):  
Financial Performance ◽  
Granger Causality ◽  
Environmental Performance ◽  
Co2 Emission ◽  
Positive Relationship ◽  
Granger Causality Test ◽  
Causality Test ◽  
Emission Reductions ◽  
Policy Makers ◽  
D Investment

This study investigated the relationship between R&D investments and financial and environmental performance. The direction, size, and significance of various phases of these variables were generated using the bootstrap Fourier quantiles Granger causality test. In our results, a positive relationship between R&D investment and CO2 emission reductions was found at two tails of quantiles. Additionally, we observed a significantly positive relationship between financial performance and CO2 emission reductions at the 0.5 quantile and above. The correlation between R&D investment and financial performance was identified to be positive under the 0.3, 0.4, 0.5 and 0.9 quantiles and negative under the 0.5 and 0.6 quantiles. The changing linkages among R&D investment, environmental performance and financial performance found in this study provide important information for policy makers, aiding in the development of R&D strategies to upgrade financial and environmental performance simultaneously.

Vulnerable Company’s Triumphs in M&A Negotiation under the Impact of COVID-19 — An Empirical Study of Asian Companies

2021 ◽  
pp. 2150012
Author(s):  
Tsai-Hsin Cheng ◽  
Chung-Jian Huang ◽  
Chao-Hsien Sung ◽  
Yi-Chang Huang
Keyword(s):  
Game Theory ◽  
Empirical Study ◽  
Mergers And Acquisitions ◽  
Strategic Alliances ◽  
Information Economics ◽  
Biotechnology Industry ◽  
Equilibrium Price ◽  
Cold Chain ◽  
Investment Valuation ◽  
The Impact

The worldwide lockdown caused by COVID-19 has led to the complete suspension of shipping, land transportation, and aviation. As a result of the redistribution of global resources, governments have recently advocated acquisitions and mergers with strategic alliances and vertical integrations to revitalize the economy. This study aims to investigate how the mergers and acquisitions (M&A) were negotiated and how the equilibrium price was achieved with game theory and information economics in agricultural and fishery biotechnology industry. The findings in the present study propose that by adopting investment valuation (asset-based approach, revenue method, market method) and presenting three patents (globally unique nondrug-denatured pure male tilapia and GPS [Formula: see text]C cloud cold chain logistics), the more the vulnerable company is able to attain a triumphant price during the negotiation of M&A.

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