Strategic planning has been the process by which most health care organizations systematically identify their resources, capacities, and capabilities for the purpose of generating profits and allocating capital resources (Campobasso, 2000). A component of strategic planning, business strategy may be viewed as the outcome of health care organizations meeting their external environments. With increasing competition in the industry, organizations must make decisions about strategic selections in products and services to compete in turbulent markets found that business growth and strategy changes by type of strategic positioning of the organization. Layton (1991) suggested that organizational growth objectives must be consistent with financial realities of capital structure, because rapid growth can strain resources and create financial difficulties.
Despite its success, as measured by financial growth, innovative outcomes, and number of firms entering the industry, biotechnology remains a capital-intensive and risky manufacturing partly because of market uncertainties and complex regulatory regimes. Given its knowledge intensive character, biotechnology is also a fertile ground for entrepreneurial activities including firm creation. In such an environment characterized by high risk and rewards coupled with the potent role of knowledge, established, and newly founded biotechnology firms are in a continuous competition to secure funds mainly from venture capital firms and government agencies while reaping knowledge, know-how and expertise from spatial externalities (Pisano, 2005).
Funding for biotechnology should cover the development of infrastructure, basic-research, contribution of venture capital (for technological development and investment), scholarship programs, and exchanges with other countries. Funds should be allocated in accordance with established priorities. However, although many countries have made biotechnology one of their top priorities in their research and development agenda, there are large differences in the commitment of resources. Research in biotechnology can cover a wide range of topics and be undertaken at different levels of sophistication. It is important that as programs in biotechnology are developed the potential benefits are evaluated. Biotechnology has been shown to have applications in industry, medical care, and agriculture. However, in developing countries, human, and financial resources are limited in all three areas. Because of this limitation, priorities must be set if biotechnology is to contribute to development. This means that within research programs, economic returns, and social implications should be addressed at the same time as technical matters are evaluated. This is an area that requires research to develop new tools to do this adequately.
In 2010, the biotechnology industry is continuing to increase broadly in value. The recorded a 14.8% in sales, to $11.6 billion. On the...