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Industrial Change and Regional Development: The Case of the US Biotechnology and Pharmaceutical Industries

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  • M Gray

    (Department of Geography, University of Cambridge, Cambridge CB2 3EN, England)

  • E Parker

    (Project on Regional and Industrial Economics, Rutgers University, New Brunswick, NJ 08903, USA)

Abstract

We examine the arguments surrounding the location and organization of innovative firms and examine the prospects for industry renewal and regional rejuvenation. We examine the effect of technological breakthroughs in the biotechnology industry on the organization and location of production with respect to mature and emergent regions. We find that, despite losing much of their preeminence in research and development, traditional firms in mature regions have managed to ‘capture’ a substantial amount of manufacturing and marketing. The drug-development experience, manufacturing capabilities, and marketing channels of more established companies in mature regions are turning out to be major sources of competitive advantage.

Suggested Citation

  • M Gray & E Parker, 1998. "Industrial Change and Regional Development: The Case of the US Biotechnology and Pharmaceutical Industries," Environment and Planning A, , vol. 30(10), pages 1757-1774, October.
    • Handle: RePEc:sae:envira:v:30:y:1998:i:10:p:1757-1774
    DOI: 10.1068/a301757
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    References listed on IDEAS

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    Cited by:

    1. Kean Birch & Andrew Cumbers, 2010. "Knowledge, Space, and Economic Governance: The Implications of Knowledge-Based Commodity Chains for Less-Favoured Regions," Environment and Planning A, , vol. 42(11), pages 2581-2601, November.
    2. Li Yajie & Peng Ruqin, 2017. "Research on output value and social responsibility of Chinese pharmaceutical industry based on multivariate statistics," Malaysian E Commerce Journal (MECJ), Zibeline International Publishing, vol. 1(1), pages 9-10, January.
    3. Simon Reid-Henry, 2008. "Scientific Innovation and Non-Western Regional Economies: Cuban Biotechnology's ‘Experimental Milieu’," Environment and Planning A, , vol. 40(8), pages 1966-1986, August.
    4. Al James, 2005. "Demystifying the role of culture in innovative regional economies," Regional Studies, Taylor & Francis Journals, vol. 39(9), pages 1197-1216.
    5. Christian Zeller, 2010. "The Pharma-biotech Complex and Interconnected Regional Innovation Arenas," Urban Studies, Urban Studies Journal Limited, vol. 47(13), pages 2867-2894, November.
    6. Maryann P. Feldman & Johanna L. Francis, 2004. "Homegrown Solutions: Fostering Cluster Formation," Economic Development Quarterly, , vol. 18(2), pages 127-137, May.
    7. Fridh, Ann-Charlotte, 2003. "The Exit of Pharmacia and Regional Growth," Ratio Working Papers 22, The Ratio Institute.
    8. Alan MacPherson & Vigdis Boasson, 2004. "Patent Activity and Financial Performance of Publicly Traded Companies in the U.S. Pharmaceutical Industry: The Role of Local Economic Conditions," Economic Development Quarterly, , vol. 18(4), pages 319-330, November.
    9. Vigdis Boasson & Alan MacPherson, 2001. "The Role of Geographic Location in the Financial and Innovation Performance of Publicly Traded Pharmaceutical Companies: Empirical Evidence from the Untied States," Environment and Planning A, , vol. 33(8), pages 1431-1444, August.

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