The Emergence of the Personalized Medicine Innovation Ecosystem in British Columbia: Selective Revealing, Strategic Timing and Success

Abstract

Personalized medicine is a growing subsector within medicine and biotechnology, having become a new subdomain of research within the traditional biotechnology industry. This study aims to identify, classify and analyze the emergence of the personalized medicine innovation ecosystem in British Columbia in order to inform innovation policy. We draw on and contribute to the Innovation Ecosystems and the Open Innovation literatures by examining the emergence of the personalized medicine industry in British Columbia, and the commercialization patterns and strategies of the firms within it. In this paper we identify and study the formation, open innovation mechanisms, financing and value creation of companies with technologies related to personalized medicine. Of the 94 PM firms founded in B.C., 64 are currently active, with 48% in therapeutics, 38% in diagnostics, and 14% in digital health. We find evidence of the importance of the Open Innovation mechanisms of selective revealing and of strategic timing to value creation by personalized medicine ventures.