Intellectual Property in Biotechnology Firms

The relationship between intellectual property andsmall and medium-sized enterprises (SMEs) in the biotechnology industry isexamined.A study was designed to compare the experiences of biotechnologySMEs in the United Kingdom in their management of intellectual property,investigate the barriers to the development of intellectual property thatconfront UK SMEs as they enter the biotechnology industry, and determine theextent to which biotechnology SMEs take advantage of existing patenting systemsin the United Kingdom. Thirty-three biotechnology firms, most of which produced biopharmaceuticals,were interviewed.Other represented sectors included gene therapy,microbiology, and vaccines.Firms were asked to comment on their means fordeveloping intellectual property, their strategies for protecting thatproperty, and the limitations of relying on patents.The firms viewedpatents as an effective form of protection, and research collaborations wereregarded as a way of obtaining intellectual property.Many firms also sawthe licensing out of their intellectual property as an important aim of theircorporate strategy; few firms, however, actually appeared to be licensing out asignificant number of products and technologies.Intellectual propertyacts as a potential barrier to entry and to survival in the industry in thatthe lack of a patent portfolio may prevent a biotechnology SME from findingprivate investors and from participating in collaborations with largercompanies.(SAA)