Glenn Crocker in New Scientist says that too many biotech firms are started and too few allowed to go bust when it becomes evident that they’re not going to work. This unproductive layer of dodgy firms with poor products blocks the creation of the next generation of potentially more successful businesses by soaking up scarce resources.
Quite an interesting ecological angle on business creation. Crocker reckons that the solution is to give scientists development money to take their ideas further before they have to start a firm to exploit them. It’s certainly kinder than thinning out the forest of duds once they’re up and running.