Abstract:

This article pursues an application of network economics to the formation of alliances in the biotech-pharma industry. The framework analysis provides insights under which firms create hybrid governance forms, integrate strategy and economics into a more holistic perspective on network strategy. Firm network types link network economies, competencies and market structure, creating integration between market participants and change as additional dimensions. The resulting constructs involve the network dimension as a mechanism design for investigating the evolution and life cycles of firm networks. An analysis of alliances within the pharmaceutical and biotechnology industries develops the framework, supported by an event-based tracing.