S

The main differences between Biotechnology

industry and Semiconductor and

Computer industries.

Opportunity

Biotechnology: Initially was High thanks to two discoveries( Recombinement DNA and Hybridoma) and this opened to huge amount of innovations; during the time the trend was decreasing

Computer: High, because of the novelty of the industry; and the opportunities was always HIGH, due to the several innovations, such as the minicomputer and PC, that increased the opportunities of entry in this market, not only for Hardware producers but also for Software producers.

Semiconductor: Initially High thanks to the radical inventions (i.e. AT&T and Intel) following a decreasing trend due to increasing of entry barriers caused by the presence of leader firms(INTEL)

Appropriability

Biotechnology: Crucial requisite; medium due to the confusion surrounding the conditions under which patents could be obtained

Computer: Initially high since that the government was the main actor; then medium because there was legal protection on several innovations but competitors began stealing ideas among them.

Semiconductor: High due to the complex nature of the knowledge and advanced technology used.

Cumulativeness

Biotechnology: Initially low because of radical changing, the vertical integration raises during time then the progress becomes more cumulative

Computer: initially was low due to the Radical Innovation; instead in later years became HIGH there were mainly incremental innovations.

Semiconductor: Initially low because the sector is mainly based on radical innovation but in the other phases lots of firms began to follow strategies of incremental innovation while others continued to follow strategies of radical innovation.

Knowledge base

Biotechnology: is complex and codified ; in the last phase is tacit; share of knowledge can be supported by Universities, government and other firms.

Computer: initially was a basic and tacit Knowledge; in later years was a more complex and codified knowledge. This industry can take advantage from several links with other institutions, such as Universities, increasing the Knowledge base of the industry.

Semiconductor: Initially simple and systemic , then tacit and firm specific, in the end complex and firm specific.

Firm’s size

Biotechnology: Trend is growing, from small/medium firm’s size to high size due to vertical integration that characterized the sector.

Computer : Initially BIG; Then Big---> hardware producers; while Software producers medium/small. (vertical disintegration)

Semiconductor: at the beginning there are small firms, the sector requires high level of specialization (radical innovation), subsequently small firms exit the industry and could only remain firms that were able to introduce new products like IBM.

Process-product innovation

Biotechnology: the trend is growing; initially is low because of the absence of capabilities in administrative procedures for approval new products, testing and marketing. Integration or partnership with existing expert firms allows to raise the innovation during transition and specific phases.

Computer: To survive in this industry, invest in R&D is crucial(IBM). This is why product innovation was always high; while process follows a growing trend.

Semiconductor: Process innovation follows a growing trend, while product innovation was substantially high during the long period.

Our expression during the work…

Professors’s face during the presentation…