Qualitative evaluation of the finnish life science innovation system with comparison to the San Francisco Bay Area

The life science sector is among the fastest growing knowledge fields characterized by a high rate of radical innovations. However, it does not have a long history as a distinct industrial sector. It is strongly regulated, and its products usually have long development cycles. Further challenges arise from the inherent uncertainty linked to biological processes and knowledge gaps in available scientific information. Policy actions play a major role in the emergence and growth of the business. In this paper, we examine the dynamics and functionality of sectoral innovation systems (SIS) in the life sciences industry in Finland. We contrast observations on Finnish industry to those in the San Francisco Bay Area, where biotechnology and the life science industry are more concentrated than in the rest of the US. A total of 33 qualitative face-to-face interviews with senior managers and decision-makers were conducted for this study. This research paper describes the various actors, networks, institutions, and functions related to SIS. We have detected several inducement and blocking mechanisms for business primarily in Finland and suggest some policy implications for further review. Limited commercial experience, scarce venture capital, and weak global networks pose challenges for Finland's emerging life science industry.