Keywords: biotechnology firms, exploitation, exploration, process, science-based firms, strategy, value building, value creation
The process of value building in science-based companies: Geron and the 'Telome-race'
Through the in-depth case of a biotechnology company, this paper contributes to an increased understanding of the strategic and organisational issues of pursuing scientific progress with commercial constraints and of how value is built in new science-based companies. A conclusion from this study is that the main mechanism enabling science-based companies to build value is the ability to adopt new scientific evidence and adjust the organisation accordingly. The identification and interaction with external actors emerges as key to this ability. Comparisons are made with other case studies, and the analysis provides support for the main argument of this paper: exploration, rather than exploitation, creates the base for value building in science-based companies.