Growth and profitability in small privately held biotech firms: preliminary findings

Malin Brännback, Alan Carsrud, Maija Renko, Ralf Östermark, Jaana Aaltonen, Niklas Kiviluoto

Research output: Contribution to journalArticleScientificpeer-review

15 Citations (Scopus)


This paper reports on preliminary findings on a study of the relationship of growth and profitability among small privately held Finnish Life Science firms. Previous research results concerning growth and profitability are mixed, ranging from strongly positive to a negative relationship. The conventional wisdom states that growth is a prerequisite for profitability. Our results suggest that the reverse is the case. A high profitability-low growth biotech firm is more probably to make the transition to high profitability-high growth than a firm that starts off with low profitability and high growth. © 2009 Elsevier B.V. All rights reserved.
Original languageEnglish
Pages (from-to)369-376
Number of pages8
JournalNew Biotechnology
Issue number5
Publication statusPublished - Jun 2009
MoE publication typeA1 Journal article-refereed


  • Biotechnology
  • entrepreneurship
  • growth entrepreneurship
  • profits


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