Venture capital, biotechnology firms and network forms of organisation in the Antipodes

This paper addresses network forms of organisation among dedicated biotechnology firms (DBFs) in Melbourne, replicating the network methods of a major US study and drawing upon interviews with industry informants. It argues that the emerging body of research on biotechnology clusters and networks outside the world hubs places too much emphasis upon ‘precocious internationalization’ and ‘distant networking’ at the expense of regional clusters and networks – especially in relation to venture capital. Melbourne DBFs rely overwhelmingly upon regional finance from local and interstate financial firms. This is because venture capitalists in the industry take advantage of local knowledge, and are unwilling to consider investment in firms too far away from their homes. In turn, their investments promote experimentation with new financial conceptions of the firm and, more generally, network forms of organisation.