title: Growth and profitability in small privately held biotech firms: preliminary findings.
abstract: 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.
authors.affiliation: Abo Akademi University, Department of Business Studies, Henriksgatan 7, FIN-20500 Abo, Finland. Malin.brannback@abo.fi <Malin.brannback@abo.fi>
authors.forename: Malin
authors.initials: M
authors.lastname: Brännback
authors.forename: Alan
authors.initials: A
authors.lastname: Carsrud
authors.forename: Maija
authors.initials: M
authors.lastname: Renko
authors.forename: Ralf
authors.initials: R
authors.lastname: Ostermark
authors.forename: Jaana
authors.initials: J
authors.lastname: Aaltonen
authors.forename: Niklas
authors.initials: N
authors.lastname: Kiviluoto
mesh_terms: 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*