This is a doctoral dissertation project which will apply advanced network techniques to interorganizational networks in order toreveal the process by which new biotechnology firms gainlegitimacy, develop trust relations, and reduce their resourcedependence on their environment. The study will use a longitudinal data base of interorganizational exchanges between 1976-1990. The biotechnology industry provides a unique case forstudying the networks between organizations of several types. It will improve our understanding of how networks affect the development of new ideas and products.