Keywords: national biotechnology industry, cost of capital, commercialisation hurdles
A comparative study on the influence of the cost of capital on the development of national biotechnology industries within developing countries
For a number of reasons, developing countries lag significantly behind OECD nations in their ability to benefit from the recent advances in biotechnology. One of the reasons for this difference is the virtual absence and hence high cost of loan or equity capital. In this paper, the extent to which the 'cost of capital' presents an impediment to the commercialisation of biotechnology innovation within emerging economies is quantified. A number of recommendations for both senior policy makers within government, and emerging companies within developing countries are made in order to inform a revised strategy for overcoming this hurdle.