Networks and alliances in biotechnology Biotechnology industry is among the industries that have the highest rates of alliance formation. In 1988, Ernest & Young reported that more than 70% of the US biotechnology firms were involved in strategic alliances and on average, each firm had 10 partners. Indeed, OECD statistics also show that based on a literature-based survey (reports from newspaper, trade journals, etc.), the number of alliances has increased from 45 in 1990 to 526 in 2006. Therefore, in this essay assignment, I would like you to explore further why networks and alliances are so important for biotech firms. In your essay, please answer the following research questions: 1. Describe the biotechnology industry. What are the sub-sectors within the biotechnology industry and which one is the most important? 2. Why do biotechnology firms collaborate with external partners? 3. How do biotechnology firms choose their partners? 4. In a collaborative relationship, how might large and small biotech firms face conflicts over decisions to bring new products to market?