The Key Success Factors of Biotech Start-Up Firms: Characteristics and Attributes of the Management Teams of High-Performing Biotech Start-Ups

Biotech start-up firms have become the major originator of innovative products in the pharmaceutical industry. The composition and capability of the management team are key factors in their steady growth and are more elastic than other resources such as the size of capital and number of products. However, the characteristics and dynamics of the management team are not fully understood in Japan, resulting in limited value creation. To address this issue, the present study conducted a systematic review of representative publications on the key success factors of biotech start-up firms. Considering the massive investment and long time before generating revenue with a lower success rate in uncertain situations, we defined firms' success in terms of achieving initial public offering or entering a clinical study (internal factors) and the significance of support from venture capitalists and alliances with large corporations (external factors). Furthermore, we identified the key characteristics of the management team of a start-up firm in terms of its transformation over time, modes of contribution by a seed originator, legitimacy, and scientific understanding.