Turning Scientific Knowledge into Capital: the Experience of Biotech Start-ups in France1

This paper examines how Scientific and technological (S&T) human capital is transformed into financial capital through the creation of firms by scientists. The study is based on the analysis of the role and position of the 132 founders of 62 French biotech SMEs in their early years. . Our empirical analysis highlights that scientists who have the highest human capital in terms of reputation and scientific visibility (estimated through academic status and publications) play a similar part to investors in financial capital. They bring scientific results as a capital and have a strategic and scientific advisory role. However, they are only partially involved in the firm as they retain their position in academia. By contrast, less famous scientists cannot valorise a stock of human capital, only a potential. To transform potential into stock, they involve themselves completely in the firm in a managerial position. The creation of the start-up is based on the transformation of a scientific result in innovation. They found a firm with a weak growth potential and have to generate cash flows to finance their development and even their survival. JEL Classification: O32, M13, J24