The Effects of Technology Transfer, Marketing Strategy and Innovation Strategy on the Operating Performance of the Biotech/Pharmaceutical Industry in Taiwan

Early studies on the factors that influence the operating performance within the biotech/pharmaceutical industry mainly focused on the establishment of technological capability or the effects of innovation in terms of increasing competitiveness. Nevertheless, there are few studies on the process, marketing and strategic direction for innovation concerning biotechnology transfer. Due to technology transference enabling managers to maintain their technological competitiveness, they are able to cope with the globalization of competition and enhance their operating performance. Furthermore, marketing strategy is able to increase biotechnological product sales and establish brand names; and innovation strategy serves as the driving force for creating competitive advantages for biotechnological entrepreneurs. This paper focuses on how to build up technology transference, marketing strategy and innovation strategy in the biotech/pharmaceutical industry. In addition, this study aims to attain the consistency ratio, which probably affects the operating performance, by the method of the Analytic Hierarchy Process (AHP), the analysis of 11 valid questionnaires, and the use of software, such as Expert Choice 2000. The results are as follows: (1) Product innovation and marketing innovation are the most important key influencing factors in the biotechnology and pharmaceutical industries; (2) Technological uniqueness serves as an important basis for sustainable development in the biotech/pharmaceutical industry; and (3) Product strategy and channel strategy serve as the driving forces that enhance the operating performance of the biotech/pharmaceutical industry. Finally, in order to improve the operating performance of firms, this study recommends that entrepreneurs within the biotech/pharmaceutical industry in Taiwan should strengthen product innovation, develop new markets and products, introduce unique technology, establish product strategy with a professional image and build up channel strategy based on a sound network of relationships.