Growth and Profitability in Small Privately Held Biotech Firms: Preliminary Findings
New Biotechnology, Vol. 25, No. 5, pp. 369-376, June 2009
21 Pages Posted: 31 May 2009
This paper reports on preliminary findings on a study of the relationship of growth and profitability among small privately held Finnish Life Science firms. Previous research results concerning growth and profitability are mixed, ranging from strongly positive to a negative relationship. The conventional wisdom states that growth is a prerequisite for profitability. Our results suggest that the reverse is the case. A high profitability-low growth biotech firm is more probably to make the transition to high profitability-high growth than a firm that starts off with low profitability and high growth.
Keywords: Biotechnology, profitability, growth, entrepreneurship
JEL Classification: M13
Suggested Citation: Suggested Citation