IDEAS home Printed from https://ideas.repec.org/a/sae/envira/v30y1998i10p1757-1774.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1068/a301757
    Download Restriction: no
    File URL: https://libkey.io/10.1068/a301757?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ernst R. Berndt & Linda T. Bui & David H. Lucking-Reiley & Glen L. Urban, 1996. "The Roles of Marketing, Product Quality, and Price Competition in the Growth and Composition of the U.S. Antiulcer Drug Industry," NBER Chapters, in: The Economics of New Goods, pages 277-328, National Bureau of Economic Research, Inc.
    2. Howells, Jeremy, 1990. "The location and organisation of research and development: New horizons," Research Policy, Elsevier, vol. 19(2), pages 133-146, April.
    3. A J Scott & D P Angel, 1987. "The US Semiconductor Industry: A Locational Analysis," Environment and Planning A, , vol. 19(7), pages 875-912, July.
    4. Brusco, Sebastiano, 1982. "The Emilian Model: Productive Decentralisation and Social Integration," Cambridge Journal of Economics, Oxford University Press, vol. 6(2), pages 167-184, June.
    5. J Howells, 1992. "Pharmaceuticals and Europe 1992: The Dynamics of Industrial Change," Environment and Planning A, , vol. 24(1), pages 33-48, January.
    6. Sean Digiovanna, 1996. "Industrial Districts and Regional Economic Development: A Regulation Approach," Regional Studies, Taylor & Francis Journals, vol. 30(4), pages 373-386.
    7. Richard Florida, 1996. "Regional Creative Destruction: Production Organization, Globalization, and the Economic Transformation of the Midwest," Economic Geography, Taylor & Francis Journals, vol. 72(3), pages 314-334, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.
    2. 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.
    3. Maryann P. Feldman & Johanna L. Francis, 2004. "Homegrown Solutions: Fostering Cluster Formation," Economic Development Quarterly, , vol. 18(2), pages 127-137, May.
    4. 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.
    5. 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.
    6. Fridh, Ann-Charlotte, 2003. "The Exit of Pharmacia and Regional Growth," Ratio Working Papers 22, The Ratio Institute.
    7. 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.
    8. 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.
    9. Al James, 2005. "Demystifying the role of culture in innovative regional economies," Regional Studies, Taylor & Francis Journals, vol. 39(9), pages 1197-1216.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. John N H Britton, 2003. "Network Structure of an Industrial Cluster: Electronics in Toronto," Environment and Planning A, , vol. 35(6), pages 983-1006, June.
    2. Helle Neergaard & John Parm Ulhøi, 2006. "Government Agency and Trust in the Formation and Transformation of Interorganizational Entrepreneurial Networks," Entrepreneurship Theory and Practice, , vol. 30(4), pages 519-539, July.
    3. Gordon MacLeod, 2001. "Beyond Soft Institutionalism: Accumulation, Regulation, and Their Geographical Fixes," Environment and Planning A, , vol. 33(7), pages 1145-1167, July.
    4. Marta Gancarczyk, 2010. "Model schyłku i odrodzenia klastrów," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 1-21.
    5. Cirer-Costa, Joan Carles, 2015. "The pressure of tourism on the Mediterranean coastline and beaches," MPRA Paper 62843, University Library of Munich, Germany.
    6. Carla Costa & Rui Baptista, 2012. "Agglomeration vs. Organizational Reproduction: The Molds Cluster in Portugal," Papers in Evolutionary Economic Geography (PEEG) 1222, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2012.
    7. Ariel Mendez & Elena Ragazzi, 2007. "Coopération et gouvernance dans deux districts en transition," CERIS Working Paper 200710, CNR-IRCrES Research Institute on Sustainable Economic Growth - Torino (TO) ITALY - former Institute for Economic Research on Firms and Growth - Moncalieri (TO) ITALY.
    8. Robert Hassink & Dong-Ho Shin, 2005. "Guest Editorial," Environment and Planning A, , vol. 37(4), pages 571-580, April.
    9. Huasheng Zhu & Kelly Wanjing Chen & Juncheng Dai, 2016. "Beyond Apprenticeship: Knowledge Brokers and Sustainability of Apprentice-Based Clusters," Sustainability, MDPI, vol. 8(12), pages 1-17, December.
    10. Roy, Satyaki, 2012. "Spatial Organization Of Production In India: Contesting Themes And Conflicting Evidence," Journal of Regional Development and Planning, Rajarshi Majumder, vol. 1(1), pages 1-16.
    11. Steven Klepper, 2010. "The Origin and Growth of Industry Clusters: The Making of Silicon Valley and Detroit," NBER Chapters, in: Cities and Entrepreneurship, National Bureau of Economic Research, Inc.
    12. Marie-Laure Salles-Djelic & Michel Gutsatz, 2000. "Managerial Competencies for Organizational Flexibility: The Luxury Goods Industry between Tradition and Postmodernism," Post-Print hal-01892018, HAL.
    13. Mark Lazerson & Gianni Lorenzoni, 1999. "Resisting Organizational Inertia: The Evolution of Industrial Districts," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 3(4), pages 361-377, December.
    14. Francesca Borrelli & Cristina Ponsiglione & Luca Iandoli & Giuseppe Zollo, 2005. "Inter-Organizational Learning and Collective Memory in Small Firms Clusters: an Agent-Based Approach," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 8(3), pages 1-4.
    15. Hervas-Oliver, Jose-Luis & Lleo, María & Cervello, Roberto, 2017. "The dynamics of cluster entrepreneurship: Knowledge legacy from parents or agglomeration effects? The case of the Castellon ceramic tile district," Research Policy, Elsevier, vol. 46(1), pages 73-92.
    16. Myriam Mariani, 2002. "Next to Production or to Technological Clusters? The Economics and Management of R&D Location," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 6(2), pages 131-152, May.
    17. Francesco Quatraro, 2009. "Innovation, structural change and productivity growth: evidence from Italian regions, 1980--2003," Cambridge Journal of Economics, Oxford University Press, vol. 33(5), pages 1001-1022, September.
    18. Di Matteo, Dante & Mariotti, Ilaria & Rossi, Federica, 2023. "Transport infrastructure and economic performance: An evaluation of the Milan-Bologna high-speed rail corridor," Socio-Economic Planning Sciences, Elsevier, vol. 85(C).
    19. Andrea Morrison, 2018. "Spinoffs, parents, and institutions: Evidence from the Italian motorcycle industry," Papers in Evolutionary Economic Geography (PEEG) 1840, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2018.
    20. Pierre Dubois & Rachel Griffith & Martin O’Connell, 2018. "The Effects of Banning Advertising in Junk Food Markets," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 85(1), pages 396-436.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:envira:v:30:y:1998:i:10:p:1757-1774. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.