Experiences, Experience Gaps, and the Moderating Role of Technology Co-Development in Biotech–Pharma Partnerships

Abstract

In the life sciences industry, pharmaceutical firms often collaborate with biotechnology firms to access technological expertise and R&D capabilities, enabling them to accelerate innovation and bring products to market more effectively. In this study, we examine the collaboration experiences of biotechnology startups and pharmaceutical firms in 287 biotech–pharma partnerships and analyze how firms’ experience impacts the likelihood of product commercialization. Experience is defined as the number of times each firm has participated in supply-based activities in biotech–pharma partnerships. We also conjecture that products developed through biotech–pharma partnerships are more likely to progress toward commercialization if both firms have similar levels of experience. However, when the partnering firms’ experience gap increases and they collaborate to develop the product jointly, we expect progress toward commercialization to become less likely. Our results show that both the biotechnology startup's experience and the pharmaceutical firm's experience increase the likelihood of progression toward commercialization. Our results also confirm that co-development moderates the relationship between experience gaps and the progression toward commercialization. Based on our findings, partnering experience and experience gaps are critical considerations as pharmaceutical firms engage in co-development projects with biotechnology startups. By focusing on partnering experience, our study contributes to the technology management literature and research on interfirm partnerships, specifically, in the biotechnology and pharmaceutical industries.