Technological entrepreneurship, co-evolution of a market contexts, and industrial structural dynamics are the interlinked concepts which are the drivers for knowledge generation, innovation and economic opportunities identification. In biotechnological markets, this integrated structure is examined either as vertical (VA) or horizontal alliance (HA). Empirically, both have advanced theory and practice. However, neither explains the structural market dynamics in the entrepreneurial biotechnology industry. The VA links biotechnology to incumbents; and the HA links biotechnologies to universities. The VA implies the importance of financial capital; the HA for knowledge capital. This paper carries the argument that the entrepreneurial firms-based market dynamics can be seen as self-sustaining for the technological entrepreneurship and innovation.