Growth and profitability in small privately held biotech firms: preliminary findings.
This paper reports on preliminary findings on a study of the relationship of growth and profitability among small privately held Finnish Life Science firms. Previous research results concerning growth and profitability are mixed, ranging from strongly positive to a negative relationship. The conventional wisdom states that growth is a prerequisite for profitability. Our results suggest that the reverse is the case. A high profitability-low growth biotech firm is more probably to make the transition to high profitability-high growth than a firm that starts off with low profitability and high growth.
Brännback
Malin
M
Abo Akademi University, Department of Business Studies, Henriksgatan 7, FIN-20500 Abo, Finland. Malin.brannback@abo.fi <Malin.brannback@abo.fi>
Carsrud
Alan
A
Renko
Maija
M
Ostermark
Ralf
R
Aaltonen
Jaana
J
Kiviluoto
Niklas
N
D001709:Biotechnology / Q000191:economics*; D005387:Finland; D007182:Income / Q000706:statistics & numerical data*; D007449:Investments / Q000191:economics; D017059:Models, Econometric; D010067:Ownership / Q000191:economics*; D017149:Private Sector / Q000191:economics*