ABSTRACT
This chapter describes the role of these linkages in biotechnology. It argues that firms link together for many of the reasons, such as cost and risk sharing, and the merging of complementary capabilities. Innovation can be highly radical and completely change existing ways of doing things. This is rare, however, and it is more often incremental, improving products or processes. Freeman describes it as the technical, design, manufacturing, management and commercial activities in the marketing of a new product or the first use of a new manufacturing process or equipment. The chapter examines some of the ways collaboration between organizations encourages innovation. It focuses on technological innovation, rather than the organizational, management, financial and marketing innovations which are so often also needed to ensure success. It concentrates on the science and technology elements of the process rather than the market ones.
