Essay from the year 2006 in the subject Business economics – Miscellaneous, grade: 1, 8, HHL Leipzig Graduate School of Management, course: Innovation, Entrepreneurship and Cluster Development, language: English, abstract: In this paper I am going to discuss factors that initiate and drive the clustering of biotechnology companies. In a first step I will address the question of defining a cluster as such. I then turn to a discussion of believed beneficial outcomes by referring to the works of Porter who claims that among others clusters attract the formation of new businesses and also result in growth of the respective cluster . In the light of ten case studies I will then assess the relevance and impact of critical factors on the creation and development of biotechnology clusters. The findings of the case studies suggest relevant key factors and prerequisites for biotechnological clusters to emerge and to develop. Special emphasis will be placed on the question whether or not the beneficial outcomes of clustering as described by Porter can be confirmed by the case studies and the implications that follow as far as the beneficial outcomes are not being confirmed. The paper will conclude with a theoretical framework that is aimed at capturing the virtuous cycle of biotechnology clusters
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