Clustering biotech: A recipe for success? Spatial patterns of growth of biotechnology in Munich, Rhineland and Hamburg

The dynamic growth of biotechnology in Germany in recent years has an obviously spatial pattern. Some regions show a substantial potential for start-ups and young firms of this new industry whereas others lag behind. The paper is discussing this unequal spatial development elaborating perspectives which derive from recent debates about regional innovation systems. The biotech regions Munich and Rhineland, both winner regions of the BioRegio Competition are described and compared with the situation in Hamburg where biotechnology is much less important. We analyze the degree and relevance of locally integrated input-output relations of innovation systems based on typologies of the wide range of firms within the biotechnological value chain and the forms of co-operation. Moreover, a qualitative estimate is given with respect to the significance of untraded relationships and regional knowledge spillovers. Factors favoring local integration are compared with those favoring input-output systems on a transatlantic scale. The paper discusses the question whether the biotech industries in the regions of Munich, Rhineland and Hamburg represent identifiable regional systems of innovation. Our findings show that the spatial concentration does not necessarily imply a close network of input-output relations within a cluster. Knowledge and technology transfer often happens on a international, mostly on the North Atlantic scale. The exchange of tacit knowledge, however, is facilitated by spatial proximity. This underlines the importance of untraded relations and relational assets in a region. Political and institutional support for building a business community can reduce barriers to launch risky commercialization processes.