The evolution of biotechnology in three continents: Schumpeterian or Penrosian?

This Editorial introduces the Special Issue on 'Biotechnologv Clusters and Beyond'. Drawing on the interventions of five commissioned articles from Canada, Germany, Israel, the UK and the US it suggests that biotechnology clusters are interesting and important intellectually and for policy deliberation. They pose questions about basic cluster theory because localized networks, though intense, may not be as extensive as global ones infirm practices, especially as these evolve over time. Moreover, innovation is more deeply embedded in the publicly funded science base than for 'Porterian' clusters. Regarding innovation, biotechnology is also less obviously Schumpeterian, there being little market-driven 'creative destruction' and is arguably, with its strong emphasis on both large- and small-firm 'capabilities'-Penrosian-an emphasis in clustering research and applications that warrants further investigation. Finally, at the specific technology-exploitation phase, market interactions assert themselves over milieu characteristics because scientists know the value of their discoveries and there is accordingly high appropriability associated with such knowledge capabilities.