Biotechnology firms require resources to involve in the innovation cycles of their societies. Like other technology-based companies, these firms face some challenges on their way to success. Therefore, it is vital for them to be aware of their key success factors in order to achieve their goals and accomplish their missions. This paper tries to identify those key success factors and proposes a conceptual framework. About 14 experts from 12 companies were interviewed, and coding approach was used to elaborate the conceptual model.

Biotechnology1 is one of the most important industries in a knowledge-based economy. Governments are eager to develop the microbial biotechnology industry to improve the skill levels of their workforce, to build up the R&D base for the future of their economies, and to prosper as regional hubs in the era of globalization (Burns, 2005). The development agenda has particular significance to countries that must transform their economies to knowledge-based economies for the future. However, challenges to latecomers in the field are formidable. In sum, microbial biotechnology is characterized by high-risk, long-term development and lengthy commercialization periods (Orsenigo, 1989).

Development in microbial biotechnology industry basically rests on the advancements in life sciences (Orsenigo, 1989; Mangematin et al., 2003; and Shahi, 2004). While, on the one hand, innovative activities in microbial biotechnology require strong R&D efforts in life science which is widely dispersed such that firms must interact with a relatively large number of scientific institutions and firms to get the information they need (Orsenigo, 1989; and Powell et al., 1996), on the other hand, a large number of innovators, mainly SMEs, characterizes the microbial biotechnology industry. The originality and range of technology based on the life sciences encourage the emergence of new companies, and as a consequence, the development of the microbial biotechnology sector is based on the emergence of a large number of SMEs (Orsenigo, 1989; and Mangematin et al., 2003).

Management Research Journal, Conceptual Framework, Success Factors, Microbial Biotechnology Firms, Biotechnology, Development in microbial biotechnology.