Fortune Favors the Prepared Region: The Case of Entrepreneurship and the Capitol Region Biotechnology Cluster

Abstract:     
The tendency for innovative industry to clusterspatially has been documented by scholarship; yet, questions are still raisedabout the role of government policy in cluster formation andsustainability. The authors focus on the emergence of the U.S. Capitolregion as an important biotech cluster in the U.S., documenting the generaldimensions of the innovative milieu and highlighting the historical developmentof the cluster. The Capitol region biotechnology cluster is described as the result of threeimportant factors: (1) pre-existing resources, (2) entrepreneurship andincentives, and (3) infrastructure provided by the government. The dimensionsof the Capitol Biotechnology Cluster are reviewed, and the innovative milieuout of which it emerged is presented (proximity to U.S. government departmentsin Washington D.C., biotech relevant laboratories). Entrepreneurs and new firm formation are crucial elements in the formationof innovative clusters, occurring when and where the preconditions andincentives are supportive. Findings suggest that, due to important investmentsin science and technology, the region was prepared to capitalize ontechnological opportunities in biotechnology and institutional policy changesthat fostered technology-based entrepreneurship. It is recommended that developing the role of state government in growing abiotech industry will require an understanding of how firms develop; policymust be technologically specific or industry-specific to provide maximumbenefit. State policy may help the conditions that affect the formation anddevelopment of entrepreneurial firms that are the building blocks of anindustrial cluster.(CBS)

Keywords: Government investment, Market infrastructures, Investments in technology, Technology policies, Regional development, State governments, Biotechnology industry, Incentives, Public policies, Clusters

Accepted Paper Series