Open Access Open Access  Restricted Access Subscription or Fee Access

Differentiating Public Policy for Technology Startups – Essential for Biotech?

Mindaugas Kiškis, Tadas Limba, Gintarė Gulevičiūtė


The paper presents the limited quantitative and qualitative analysis of the biotechnology and ICT industries in Lithuania and Estonia, as well as public policy instruments aimed at supporting the development of these industries. In depth analysis of the employment profile of the select biotechnology and ICT enterprises is provided. The paper suggests that existing public policy instruments designed to promote enterprise and innovation fail to differentiate among technological fields. This and other factors cause preference to the short cycle technological fields, such as ICT. Very few instruments are available for the needs of the biotechnology industry, and the long cycles and return horizons of biotechnology development are not recognized. These oversights are detrimental to the biotechnology sector and high-tech local employment. Suggestions on the policy reform are made.


Entrepreneurship, technology, ICT, biotechnology, startups, business cycle.

Full Text:



Pisano G. P. (2006) Can science be a business? Lessons from biotech. Harvard Bus. Rev, 84(10): 114–125.

Binder G., Bashe P (2008) Science Lessons: What the Business of Biotech Taught Me About Management. Boston: Harvard Business Press.

Mets T. (2009) Creating Global Business Model for Knowledge-Intensive SMEs: The Small Transition Country Cases. Economics & Management, No. 14: 466-475.

Adomanis M. (2013) Estonia And The Department Of Meaningless Statistics. Forbes, 13 July,, accessed 1 October 2013.

Kitsing M. (2013) Government as a Venture capitalist: Evidence from Estonia. Proceedings of the Industry Studies Association Annual Conference; 28-31 May 2013,, accessed 15 October 2013.

Ziegenbalg C., Munteanu O. (2011) Comprehensive analysis of programmes and initiatives in Estonia that assist the Collaboration between science and SME, Estonia_programm_report, accessed 1 November 2013.

Kiškis M. (2012) Understanding Canadian Innovation System. Social Sciences, 75(1): 92-99.

Tassey G. (2013) Beyond the business cycle: The need for a technology-based growth strategy. Science and Public Policy, 40(3):293-315.

Melnikas B., JakubaviÄius A., Leichteris E., Vilys M (2011) Žinių ekonomikos kÅ«rimas: Inovacijų paramos sistema. Vilnius: LIC.

Reiljan J., Paltser I. (2012) Estonian Innovation Policy Activity Against the Background of the EU Member States. Discussions on Estonian Economic Policy: Theory and Practice of Economic Policy, 20 (1): 147-164.

European Cooperation in Science and Technology 2014-2015 (2014) About COST: How to join a COST action,, accessed: 8 July 2014.

The Sixth Framework Programme in brief (2002), accessed 8 July 2014.

FP7 in Brief: How to get involved in the EU 7th Framework Programme for Research (2007) Luxembourg: Office for Official Publications of the European Communities,, accessed 8 July 2014.

Communication from the Commission Europe 2020: A strategy for smart, sustainable and inclusive growth,, accessed 8 July 2014.

Horizon 2020 - The EU framework Programme for Research and Innovation,, accessed 8 July 2014.

Estonian Biotechnology Programme (2009), , accessed 8 July 2014.

Lithuanian 2011-2013 Industrial Biotechnology Development Programme (2011),, accessed 8 July 2014.

Männik K., Miedzinski M., Reid A. (2011) Evaluation framework for innovation and enterprise support policies in Estonia. A report to the Ministry of Economic Affairs and Communications, Republic of Estonia,, accessed 1 September 2013.

Revest V., Sapio A. (2012) Financing technology-based small firms in Europe: what do we know? Small Business Economics, 39(1): 179-205.

Feasibility study for an Estonian biotechnology programme,, accessed 1 September 2013.

Suurna M. (2001) The developments in the business models of biotechnology in the Central and Eastern European countries: The example of Estonia. Journal of Commercial Biotechnology, Vol. 17: 84–108.

Biotechnology feasibility study in Lithuania (2007),, accessed 1 September 2013.

Senker J., Enzing Ch., Reiss (2008) Biotechnology policies and performance in central and eastern Europe. International Journal of Biotechnology, 10 (4): 341-362.


  • There are currently no refbacks.