MARKET STRUCTURE IN BIOTECHNOLOGY: IMPLICATIONS FOR LONG-RUN COMPARATIVE ADVANTAGE

Abstract

A country specializing in a high technology industry may find that excess returns stemming from innovation are reallocated overseas as foreign-based multinationals access ongoing domestic R&D through alliances with or acquisition of established domestic start-ups. Computer simulation illustrates this process in the context of the current US specialization in biotechnology. Keywords: Biotechnology, market structure, comparative advantageBiotechnology, market structure, comparative advantage, Research and Development/Tech Change/Emerging Technologies,