Risk and Regulatory Factors Affecting Location Decisions by Research-Based Pharmaceutical Companies
31 January 2011
By Dr. Richard Rozek
There are many factors that influence decisions by research-based pharmaceutical/biotechnology companies to locate facilities for performing functions such as basic research, clinical trials, manufacturing, regulatory, marketing, and distribution. In this article from the European Journal of Risk Regulation, NERA Special Consultant Dr. Richard Rozek summarizes the results of interviews with 34 senior executives representing 14 research-based pharmaceutical/biotechnology companies on the important factors that influence location decisions. These interviews provide qualitative information on the particular factors that matter and their relative importance in selecting a host country for an investment. The specific factors that influence the general willingness of companies to invest in a particular country include industry history, the incremental nature of investments, stability, structure of the pharmaceutical marketplace, access to leading scientists and physicians, adequate supply of skilled workers, sufficient patient population for clinical trials, tax policy, and transport links both within the region served and to global headquarters.
This article was published in the European Journal of Risk Regulation, Issue 1, 2011, pp.92-103.
