Sub-Sectors In Biotechnology

Introduction
1. Describe the biotechnology industry. What are the sub-sectors within the biotechnology industry and which one is the most important?
According to layman's language biotechnology involves the utilization of methods in light of living frameworks to make items and enhance different species (Ranade, 2008). Biotech is a beneficial interaction of science and innovation (Ranade, 2008). It is seen to enhance the personal satisfaction in two different ways: (1) through additions from the social estimation of its items, and (2) as a motor of economic development and advancement (Ranade, 2008). Biotech has impacted almost all aspect of human life.
Sub-Sectors in Biotechnology industry
Biotechnology is broadly classified into three:

2. Why do biotechnology firms collaborate with external partners?
Biotechnology firms collaboration with external partners enables firms to obtain necessary skills and resources more quickly than developing them internally. Through alliances, firms can set up a constrained stake in the undertaking while keeping up the adaptability to either expand their projects later or shift these assets to another open door.
Biotechnology collaborates because product development is expensive and connected with extremely doubtful returns, firms look to share their expenses and dangers of advancement through partnerships (Rothaermel and Deeds, 2004: 208-209). Also, biotechnology firms enter a strategic alliance with the competitors so that they are free from direct competition faced by the biotechnology in their product market. (Gans et al. 2002). There are two main key drivers of alliance formation

Usually, this similarity among firms advances common trust and co-distinguishing proof, improving the probability of their partnership and thereby increasing the sense of their shared uniqueness. (cf., Gulati and Sytch Forthcoming; Lazarsfeld and Merton 1954; McPherson and Smith-Lovin 1987). It is extremely hard to pull in partners to shape an alliance with because, in light of the fact, the biotech firm faces an exceptionally solid rivalry from its potential accomplices (essay). As stated by Kim and Higgins, an association's more elite class affiliations with noticeable players facilitate organizations to have an alliance with them. The affiliations award biotech firms a quality of authenticity. It was revealed by Stern and Dukerich (2007) that an organization established by well-known researchers with well-built distribution records would attract more business accomplices likely than others to attract commercial partners early in the product advancement