RESTRICCIONES ESTRUCTURALES PARA LA INNOVACIÓN EN LA BIOTECNOLOGÍA COLOMBIANA.

This work is an attempt to study innovation in the biotechnology sector in Colombia. A study is made of the effects of transaction costs and incomplete contracts in the organizational structures, and in innovation processes. Based on a survey applied to 19 biotechnology organizations, transverse-section econometric models were constructed to test the hypothesis. Results indicate that innovation takes place in vertically integrated companies; that subcontracting works well only if it is accompanied by economies of scale, or where the product or service subcontracted is simple; and that the barrier to development in biotechnology in Colombia is not of the scarcity of resources or on qualified people, but of institutions, which should create incentives for people to develop their capacities. [ABSTRACT FROM AUTHOR]