The developments in the business models of biotechnology in the Central and Eastern European countries: The example of Estonia

Abstract

In light of the current debate on the validation of the prevalent business models and trends taking place in the field of biotechnology in developed countries (see here in particular Pisano versus Glick), it is relevant to explore whether, and if so in which form and circumstances, the set arguments hold up and could be complemented by the context prevalent in transition countries. As one of the main concerns for the long-term development in the area relies on Pisano's argument that the sector is moving towards greater fragmentation, the deep analysis of that becomes particularly important in an environment where the very same problems are somewhat rooted in the local policymaking context and business environment. A specific example can be drawn here from the Central and Eastern European countries (CEE). Derived from this, the aim of the current article is to trace the trends in biotechnology business models in one of the rather well-performing CEE countries: Estonia. The article argues that the developments in the business models in Estonia are led by two rather contrary directions, where on the one hand increasing specialization and fragmentation and on the other hand movements towards geographical and institutional convergence can be detected.