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Industrial Location Decisions of Biotechnology Organizations

Author

Listed:
  • Peter Haug

    (Western Washington University)

  • Philip Ness

    (Washington Department of Trade and Economic Development)

Abstract

Biotechnology will have a tremendous effect on future worldwide economic development and competitiveness. This article describes research on biotechnology location decisions and economic development and characteristics of American biotechnology companies and employment. This background provides a foundation for discussing empirical evidence from commercial biotechnology enterprises in the Greater Seattle region, a major American biotechnology concentration. Research findings indicate the importance of university research activities, academic spinoffs, and entrepreneurial behavior in biotechnology firm development. Research and development (R&D) and manufacturing facility location decisions emphasized founder preferences, proximity to either university or company facilities, labor agglomeration economies, and the local infrastructure. Federal and state regulations and taxes, marketing capabilities, and financing sources were leading operational restrictions affecting company growth. These findings suggest increasing university and company R&D funding and expanding existing high-technology complexes to encourage regional biotechnology economic development.

Suggested Citation

  • Peter Haug & Philip Ness, 1993. "Industrial Location Decisions of Biotechnology Organizations," Economic Development Quarterly, , vol. 7(4), pages 390-402, November.
  • Handle: RePEc:sae:ecdequ:v:7:y:1993:i:4:p:390-402
    DOI: 10.1177/089124249300700406
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