Abstract
This paper draws on Hung’s（2002）model of technological path to study the evolution of biotechnology. The model consists of action, rules and resources. Action is constructed by firm’s strategic action on innovation. Rules are norms, paradigms and isomorphism that guide and constrain firm’s innovation action. Resources reward firm’s compliance to rules.Empirically, the paper reveals a series of firm’s innovation action in the evolution of biotechnology of 1865-1997. We divide the development of biotechnology into three stages: stage 1 (1865-1972): the discovery of gene, chromosome and nucleic acid; stage 2 (1973-1995): the double helix of DNA, genetic engineering and technology; and stage 3 (1996-2001): Human Genome Project and biological chips. It moves to conceptually afford the rules and resources with the industry. Implications for policy and strategy are briefly discussed.