Constraints, structures and financing of biotechnology companies: an international comparison.

Summary The financing of biotech firms (EBs) is approached according to two main lines of research, financial constraints (CFI) and financial structures (FS). Our objective is to examine, from an international perspective, the existence of IFCs and of a specific FS for this type of firm, which belongs to the category of technologically innovative enterprises (TIEs). To do this, we divide the countries in our sample into models of capitalism, with, on the one hand, the EBs of "neo- or ultra-liberal" countries (PL) and, on the other, "intermediated" (PI). This division allows us to reveal the "systemic" differences. In addition, individual considerations (characteristics of BHCs) and cyclical considerations (taking into account the stock market crash in the spring of 2000) are included as other determinants of BHC financing conditions. This three-pronged approach (structural, cyclical and individual) (based on panel data) shows that differences are observed at the aggregate level between LPs and IPs, and between LPs (excluding the United States and the United States alone), whether in IFCs or FS. Nevertheless, it would seem that public equity issuance is very important everywhere in terms of IFCs and FS. But, on the other hand, the cost of capital of EBs did not appear to be significant.