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Big Pharma's Internationalization of R&D to China

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  • Seamus Grimes
  • Marcela Miozzo

Abstract

China's increasing integration into the global pharmaceutical value chain is occurring at a time when big pharma's traditional R&D model has entered a period of crisis, and when China faces significant challenges in providing healthcare for its huge and rapidly ageing population. Despite China's ambitions of promoting its own pharmaceutical sector, it is likely to continue to depend for some time on significant contributions from foreign companies. While this situation provides considerable opportunities for big pharma companies to expand their markets in China, they are also hoping that offshoring aspects of their R&D to China may contribute to reconfiguring their current R&D model with its weak record of producing new drugs. Drawing on interviews with a small number of pharma R&D centres in Shanghai, patent analyses and industry reports, we provide insights into both the challenges and the opportunities associated with the early stages of establishing such centres in an emerging region with a rapidly growing market. This paper contributes towards a more nuanced view of the internationalization of R&D in emerging regions.

Suggested Citation

  • Seamus Grimes & Marcela Miozzo, 2015. "Big Pharma's Internationalization of R&D to China," European Planning Studies, Taylor & Francis Journals, vol. 23(9), pages 1873-1894, September.
    • Handle: RePEc:taf:eurpls:v:23:y:2015:i:9:p:1873-1894
    DOI: 10.1080/09654313.2015.1029442
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    Cited by:

    1. Yang, Chih-Hai & Matsuura, Toshiyuki & Ito, Tadashi, 2019. "R&D and patenting activities of foreign firms in China: The case of Japan," Japan and the World Economy, Elsevier, vol. 49(C), pages 151-160.
    2. Sommer, Daniel & Bhandari, Krishna Raj, 2022. "Internationalization of R&D and Innovation Performance in the Pharma Industry," Journal of International Management, Elsevier, vol. 28(3).
    3. Eliane Choquette & Stine Jessen Haakonsson & Peter D. Ørberg Jensen & Søren Feodor Nielsen, . "Globalization of innovation: the moderating role of project-level investment strategy and country type in location choice for R&D-related FDI," UNCTAD Transnational Corporations Journal, United Nations Conference on Trade and Development.

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