Experiential and Environmental Familiarity: Knowledge-based Activities as Predictors of Academic Sponsored Contract Research

Keywords: Entrepreneurial Firms, Knowledge-based Activities, Outsourcing

Abstract: The popularity of sponsored contract research between university and biotechnology firms continues even though problems arise related to intellectual property issues and assessing R&D output. The current study proposes that a dedicated biotechnology firm’s familiarity with academic research may reduce the potential for partner malfeasance. In this study, familiarity reflects a firm’s previous university links and location-related factors. Data collected from 191 U.S. biotechnology firms reveals experiential familiarity positively influences a firm's participation in sponsor contract research and offer mixed support for the environmental familiarity hypotheses.