Many of the strongest European pharmaceutical firms adopted this strategy, seeking to develop their own capabilities across a relatively narrow front while working with biotech startups. The small, university-linked biotechs were at first almost entirely an American phenomenon, and this gave the large U.S. pharmaceutical companies an initial advantage, as did the federal government’s support for basic research in molecular genetics. But soon, European governments were attempting to close the widening biotech gap, hoping that government support would make up for the venture capital that was not available to their potential innovators.

According to Zucker, in biotech and pharmaceutical industry proximity to potential knowledge-assets and opportunities for commercialization constitutes s a great stimulus to entrepreneurship, especially around “star” scientists or entrepreneurs. In the interdisciplinary study Brewer provides evidence that mentioned inter-organizational alliances differ from traditional hierarchical relationships, because exchanges are external to the companies, and simultaneously those exchanges constitute not only market relationships.

Practically, legal contracting constitutes only a part of such processes: reciprocity, shared norms of trustworthy behavior, honesty in research appear and respect for individual property rights to be relevant components of these alliances, enhancing their flexibility, enabling companies to gain access to unique resources and reduce costs. According to Teece, such alliances of innovation in pharmaceutical and biotech industry represent both explicit and implicit contractual activity. Furthermore, such networks are seen as a more powerful incentive for specialized companies to share their knowledge than integration through acquisition by established firms. In the latter case, it is likely that skilled employees, the key assets of the company, won’t accept the new vertical organisation, and they may leave away; if the organisation has not already designed specific internal knowledge, such acquisition strategies may result in competence destruction.

Here is an excerpt from an article from Future Pharmaceuticals Magazine regarding the special role of professional translations within the pharmaceutical industry, some of the challenges in the process, and the importance of working with a professional translation agency with experience in this specific area. The article features an interview with Jodi Castro, President and CEO of ABC Translation Services, LLC.

“The world of clinical trials is expanding with many patient participants being engaged from sites around the globe. This calls for a clear translation — that is the translation of the study must be contextual and factual in whatever language it is being read. For pharmaceutical companies that do not have this speci?c expertise, the translation industry can be a link to clear communication.

Future Pharmaceuticals: What is the role of the translation industry and why is it so critical to the globalization of the pharmaceutical industry?