Figure 3

Networked industry landscapes and networked business models. (Top) Open business landscapes; here the pharmaceutical and the private equity industries between 2004 and 2005, are in fact meshes of entwined firms. Node size in all maps is scaled to standardized network degree, or number of deals per firm, in the total network. Larger nodes, or firms with the highest transactional activity, are major players in each industry (e.g., Roche in the pharmaceutical industry and Alta Partners in the equity industry). The lines in bold between any two institutions indicate the presence of repeated ties between the same firms. The two landscapes have very different structures, the VC network being much more cohesive and its central players interacting repeatedly among themselves, contrarily to the pharmaceutical industry network. (Bottom) The open business models of the major players in each business landscape are very different (period 2004 to 2005). Roche, for example (left graph; blue dot at the center of the graph), makes each year many new dyadic transactions with many different partners. Links represent mainly in-licensing activities. The partners which Roche interacts with both in 2004 and 2005 are few (inner circle). Conversely, for Alta Partners (right graph; blue dot at the center of the graph), novel partners are fewer than for Roche, and Alta Partners links them to partners with which it has recurring partnerships (inner circle). Source: proprietary database of alliances and VentureXpert database. Visugraph Software is used for network visualization.