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Research and development for Biotech companies generates volumes of biological data and IT companies provide tools that assist in processing this data. It seems only natural that in light of this mutual dependency and given the proximity of existing IT and Biotech clusters a new, specialized Bioinformatics cluster would emerge.
In his article, "Clusters and the New Economics of Competition," Porter describes the benefits created by the "direction and pace of innovation 2" sustained by local competitors in their existing products and technologies. For example, given the already lengthy process of bringing a new pharmaceutical to market, Biotech companies must have realized early on that their ability to stay abreast of competitors was highly dependent
on the speed at which they could process massive amounts of genetic information to find therapeutic candidates...
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