Combining Resource‐Based and Evolutionary Theory to Explain the Genesis of Bio‐networks

This paper examines new firms creating innovative networks to support their development in emerging industries. Resource‐based and evolutionary theories are combined to explain the genesis of a new business ecosystem. Two case studies of biopharm ventures developing drugs against cancer showed how participants altered their selection environment as they enhanced their network's capability. Resource building took place at the firm and network level through collaborative business models involving innovative contractors. This approach uncovered previously unnoticed features of networks for drug development: resource asynchronies were found to be a stimulus to innovation in development networks, as in the Penrosean firm.