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The importance of geographical distance to different types of R&D collaboration in the pharmaceutical industry

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  • Francesca Bignami
  • Pauline Mattsson
  • Jarno Hoekman

Abstract

Innovation within companies is generated by a combination of different types of knowledge from external and geographically dispersed sources. Although the geographical dimension of collaboration has previously been investigated, studies have not distinguished between different types of knowledge involved in collaboration. This article analyses how the number of collaborations between pharmaceutical multinational companies (MNCs) and external organizations is affected by geographical distance, distinguishing between four knowledge types: basic science, clinical science, core knowledge, and exploration knowledge. We use co-publications as a proxy for collaborations. Our results show that collaborations in basic science and core knowledge areas are more negatively affected by geographical distance than collaborations within clinical science and exploration knowledge areas. This suggests that the importance of geographic proximity depends on the type of knowledge that is being transferred in R&D collaborations. Our results have implications for companies´ collaboration strategies and their choices for the R&D sites´ location.

Suggested Citation

  • Francesca Bignami & Pauline Mattsson & Jarno Hoekman, 2020. "The importance of geographical distance to different types of R&D collaboration in the pharmaceutical industry," Industry and Innovation, Taylor & Francis Journals, vol. 27(5), pages 513-537, May.
    • Handle: RePEc:taf:indinn:v:27:y:2020:i:5:p:513-537
    DOI: 10.1080/13662716.2018.1561361
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    Cited by:

    1. Giovanni Abramo & Francesca Apponi & Ciriaco Andrea D’Angelo, 2024. "The moderating role of the territorial research infrastructure on the geographic proximity effect in research collaborations: a regional-based view," Scientometrics, Springer;Akadémiai Kiadó, vol. 129(6), pages 3149-3168, June.
    2. Ferretti, Marco & Guerini, Massimiliano & Panetti, Eva & Parmentola, Adele, 2022. "The partner next door? The effect of micro-geographical proximity on intra-cluster inter-organizational relationships," Technovation, Elsevier, vol. 111(C).
    3. O. V. Kuznetsova & R. O. Bobrovsky, 2022. "Location of the Largest Pharmaceutical Companies in Russia: Contribution to Regional Divergence or Convergence?," Regional Research of Russia, Springer, vol. 12(2), pages 124-132, June.
    4. Jinho Choi & Nina Shin & Yong Sik Chang, 2021. "Strategic Investment Decisions for Emerging Technology Fields in the Health Care Sector Based on M&A Analysis," Sustainability, MDPI, vol. 13(7), pages 1-20, March.
    5. Fassio, Claudio & Geuna, Aldo & Rossi, Federica, 2023. "‘How do firms reach out to foreign universities? Inventors’ personal characteristics and the multinational structure of firms’," Journal of World Business, Elsevier, vol. 58(3).
    6. Hans Löfsten & Anders Isaksson & Heikki Rannikko, 2023. "Entrepreneurial networks, geographical proximity, and their relationship to firm growth: a study of 241 small high-tech firms," The Journal of Technology Transfer, Springer, vol. 48(6), pages 2280-2306, December.

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