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R&D offshoring and clustering dynamics in pharmaceuticals and biotechnology: key features and insights from the Chinese case

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  • Abdelillah Hamdouch
  • Feng He

Abstract

This paper focuses on the clustering dynamics based on/supported by R&D offshoring trends as exemplified by the biopharmaceutical sector in China. It suggests two baselines of the institutional arrangements appropriate to initiate innovation-based clusters: (1) emphasis on the linkages and expansion in global innovation networking, and (2) focus on breeding regional innovation networks and enterprise’s embeddedness. Above, especially in pharmaceuticals and biotechnology, these two-dimension baselines are closely intertwined and develop by means of R&D offshoring and clustering dynamics, as it is demonstrated by the case-study of interaction and co-evolution between Chinese and multinational pharmaceutical companies (MPCs). JEL Codes: F23, L24, L65, O32

Suggested Citation

  • Abdelillah Hamdouch & Feng He, 2009. "R&D offshoring and clustering dynamics in pharmaceuticals and biotechnology: key features and insights from the Chinese case," Journal of Innovation Economics, De Boeck Université, vol. 0(2), pages 95-117.
  • Handle: RePEc:cai:jiedbu:jie_004_0095
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    References listed on IDEAS

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    1. Gene M. Grossman & Elhanan Helpman, 2003. "Outsourcing Versus FDI in Industry Equilibrium," Journal of the European Economic Association, MIT Press, vol. 1(2-3), pages 317-327, 04/05.
    2. Lundin, Nannan & Schwaag Serger, Sylvia, 2007. "Globalization of R&D and China – Empirical Observations and Policy Implications," Working Paper Series 710, Research Institute of Industrial Economics.
    3. Abdellilah Hamdouch & F. Moulaert, 2006. "Knowledge Infrastructures, Innovation Dynamics and Knowledge Creation/Diffusion/Accumulation Processes: A Comparative Institutional Perspective," Post-Print halshs-00285249, HAL.
    4. Liu, Xiaohui & Buck, Trevor, 2007. "Innovation performance and channels for international technology spillovers: Evidence from Chinese high-tech industries," Research Policy, Elsevier, vol. 36(3), pages 355-366, April.
    5. Marc-Hubert DEPRET & Abdelillah HAMDOUCH, 2011. "Multiscalar Clusters And Networks As The Foundations Of Innovation Dynamics In The Biopharmaceutical Industry," Region et Developpement, Region et Developpement, LEAD, Universite du Sud - Toulon Var, vol. 33, pages 227-268.
    6. Hu, Albert Guangzhou, 2007. "Technology parks and regional economic growth in China," Research Policy, Elsevier, vol. 36(1), pages 76-87, February.
    7. Gene M. Grossman & Esteban Rossi-Hansberg, 2008. "Trading Tasks: A Simple Theory of Offshoring," American Economic Review, American Economic Association, vol. 98(5), pages 1978-1997, December.
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    Cited by:

    1. Blandine LAPERCHE & Gilliane LEFEBVRE, 2011. "Globalisation de la recherche des groupes industriels : vers “l’innovation inversée” ? Les exemples de General Electric et de Renault R&D GLOBALIZATION OF INDUSTRIAL FIRMS: TOWARDS “REVERSE INNOVATION," Working Papers 21, Réseau de Recherche sur l’Innovation. / Research Network on Innovation.
    2. Clampit, Jack & Kedia, Ben & Fabian, Frances & Gaffney, Nolan, 2015. "Offshoring satisfaction: The role of partnership credibility and cultural complementarity," Journal of World Business, Elsevier, vol. 50(1), pages 79-93.

    More about this item

    Keywords

    biopharmaceutical innovation; China; clustering dynamics; global innovation networks; pharmaceuticals; R&D offshoring;

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L24 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Contracting Out; Joint Ventures
    • L65 - Industrial Organization - - Industry Studies: Manufacturing - - - Chemicals; Rubber; Drugs; Biotechnology; Plastics
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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