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Abstract
This paper explores the ingredients that stimulated the development of the biotechnology industry in the US and contrasts conditions with those in Europe. It examines relationships between established firms and new startups; the financing and managerial environment and the organizational environment, whereby firms were able to set up networks of alliances. The funding of the medical science research base has been substantially more generous in the US than Europe. Financing and managerial conditions have been significantly easier in the US for startups, in terms of access to venture capital specializing in high technology, ability to use the stock market to raise capital, and access to people able to forge links between scientists and entrepreneurs, and to introduce managerial expertise into new companies.