Industry dynamics in biotechnology

DOI: 10.4236/abb.2012.31006   PDF   HTML     4,251 Downloads   8,751 Views   Citations

Abstract

The field of modern biotechnology is thought to have largely begun in 1980, when the United States Supreme Court ruled that a genetically-modified microorganism could be patented. The growth of the Biotechnology industry has stimulated extensive research on its determinants. One of the areas which has attracted a fair amount of attention is the distribution of firm size within an industry. What is less known however, is the dynamics of firm size. This paper considers a statistical model to describe the spatial dynamics of firm size across the biotechnology industry. It is found that firm size fluctuates around its long run stationary equilibrium according to a temporal drift and random disturbance. The empirical results illustrate that diffusion is a potential technique for the analysis of spatial dynamics of firm size.

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Hashemi, F. (2012) Industry dynamics in biotechnology. Advances in Bioscience and Biotechnology, 3, 35-39. doi: 10.4236/abb.2012.31006.

Conflicts of Interest

The authors declare no conflicts of interest.

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