174 S. Bailey
impressive track record still has little trouble in attracting funds dedicated
to R&D programs" (Klausner, 1986).
 A contrarian view of RDLPs was raised by Klausner (1985), when he
stated that the market for RDLPs had all but dried up. Moreover, the 1986
tax reform legislation calls for limitations in tax shelters as offsets to tax
liability.


OTHER SOURCES OF FINANCING

 The new biotechnology firms also have a number of other sources of
capital, including interest from funds previously raised, short-term loans,
industrial revenue bonds, and equipment leasing. Through these and other
funding mechanisms, the new biotechnology firms have generally been
able to bring in enough revenue to remain viable, even though many of
them have not yet generated actual products for the marketplace
(Schoeman, 1986).
 Some biotechnology firms have tried to lessen their reliance on R&D
contracts and licensing agreements with large U.S. firms to retain more
control over the uses and profits of their ventures with foreign companies.
In these cases, the start-up firms often retain the rights to sell their prod-
ucts within the United States while selling the overseas sales rights to their
foreign partners. In turn, the start-up firms supply either the products or
the technology to make the products to the foreign companies. Many ob-
servers have questioned the wisdom of this transfer of technology, claiming
that in the long run the spread of know-how generated in the United States
to other countries will enhance the competitiveness of foreign firms. Most
of the new biotechnology companies have deemed the short-term benefits
of such an arrangement to be more important than the long-term disad-
vantages (Schoemaker, 1986).


 UNIVERSITY-INDUSTRY RELATIONSHIPS

 Another creative financing technique employed by biotechnology com-
panies is the utilization of university talent and research grants to incubate
products for potential commercial applications. Recognizing that many
states have different programs and approaches to this concept, the author
has chosen to examine the state of Florida's efforts in this regard. The
policy statement of the Florida High Technology and Industry Council
entitled "High Technology and Economic Development-A Technology