In 2001 Ernst & Young ranked the state of Connecticut seventh in the nation with respect to the number of biotech firms operating within its borders relative to its population (Ernst & Young, 2001). In 1993 there were only six such companies in the state. What led to this increase?
This case study describes the development of the biotechnology cluster in the New Haven region of Connecticut, where most of the new biotech companies are located. Our research makes clear that the most important influence on the development of this cluster was that of Yale University.
Other contributing factors include the roles played by the state of Connecticut, the city of New Haven, and the local pharmaceutical companies. However, there is little doubt that the dominant influence was the change in the attitude and policies of Yale towards biotechnology-based industrial growth that took place after the arrival of President Richard Levin in 1993. As such, the case confirms that universities can have an important impact on local industrial and economic development.
