Evolutionary Innovations The Business of

This is a study of the commercial development of biotechnology that compares the initiatives, activities and organization of two firms--Genentech in the United States and Kabi in Sweden--as they brought knowledge to the market in the form of insulin and the human growth hormone. Writing from a broad evolutionary perspective, Maureen McKelvey's important study of one of the most modern science-based technologies will be of interest to all concerned with understanding the processes of innovation.

List of Figures

x

List of Abbreviations

xi

Preface to Paperback Edition

xiii

Introduction

Overview

1

(3)

Situating the Research Questions

4

(6)

Early Commercial Uses of Genetic Engineering

10

(4)

Reflections on Ensuing Chapters

14

(2)

Evolutionary Innovations

Introduction

16

(1)

Biological and Socio-Economic Evolution

17

(5)

Socio-Economic Evolution

22

(4)

Technological Innovation as Evolutionary

26

(10)

Evolutionary Economics

36

(4)

Issues about Technical and Economic Change

40

(2)

Firms' Competences and Perceptions

42

(2)

Lock-in and Trajectories

44

(3)

Radical versus Incremental Change

47

(1)

Summary and Conclusions

48

(2)

Science and Technology Interacting

Introduction

50

(1)

Science and Technology; Markets and Government

51

(8)

Public Context

59

(2)

Comparing the Environments

61

(6)

Defining the Environments

67

(4)

Summary and Conclusions

71

(5)

Understanding Genetic Engineering

Introduction to Genetic Engineering for Pharmaceuticals

76

(4)

Some Biological Basics

80

(3)

Continuity or Discontinuity?

83

(4)

Public Debate

87

(4)

Generating Research: the Early to Mid-1970s

Introduction

91

(2)

The Recombinant DNA Controversy and Scientific Activities

93

(6)

Inside University of California, San Francisco and Genentech

99

(8)

American Regulation and News about Research

107

(3)

Swedish Regulation and News about Research

110

(3)

Early Commercial Interest from Kabi in Sweden

113

(8)

Summary and Conclusions

121

(5)

Generating Research: the Mid- to Late 1970s

Introduction

126

(2)

Eli Lilly's Active Search for a New Supply of Insulin

128

(5)

Genentech's Activities

133

(8)

Kabi---Swedish Politics and Commercialization

141

(7)

Rivals at and in UCSF and Genentech

148

(9)

Science and Commercialization

157

(6)

Conflicts of Commercialization within UCSF

163

(3)

Summary and Conclusions

166

(5)

Specific Firm Challenges, 1979-83

Introduction

171

(2)

Directing Integration towards Commercial Uses

173

(6)

Integrating Genetic Engineering into Kabi in Sweden

179

(15)

Commercializing Genetic Engineering from Genentech's Perspective

194

(9)

Other Challenges of Complementary Technologies

203

(14)

Analytical Methods and Protein Purification

217

(5)

Summary and Conclusions

222

(6)

Multiple Uses and Markets for Human Growth Hormone

Introduction

228

(2)

Multiple Interpretations of Use

230

(6)

A Market Choice with Technical Implications, 1983

236

(6)

Shaking up hGH Markets in 1985

242

(7)

Monopoly and Competition

249

(3)

Summary and Conclusions

252

(4)

Conclusions for Evolutionary Economics

Introduction

256

(1)

Linearity or Evolutionary Complexity

257

(2)

Firms' Competences and Perceptions to Generate Novelty

259

(6)

Lock-in and Trajectories

265

(6)

Radical versus Incremental Change

271

(3)

Socio-Economic Evolution

274

(6)

Conclusions for Science and Technology

Introduction

280

(1)

Agents, Environments, and Knowledge-Seeking Activities

281

(10)

Cross-Stimulus of Scientific and Technological Activities

291

(4)

Selection as a Social Process

295

(2)

Concluding Remarks

297

(3)

References

300

(17)

Index

317

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Evolutionary Innovations The Business of Biotechnology

Summary

Table of Contents

Supplemental Materials