Hot United States FDI Sectors: Biomedical
Mark Crawford (Location USA 2012)
The United States is home to the world's largest and most developed pharmaceutical and biomedical industries, and foreign countries look to the nation for its leadership in drug development and testing, medical device design, and technology transfer. These companies - ranging from small start-ups with promising technologies in incubators to global pharmaceutical giants like Eli Lilly - prefer locations with high levels of research capability and technical expertise. Foreign companies, eager to take advantage of the synergies that exist in well-established biomedical clusters, are drawn to states like North Carolina, Indiana, Massachusetts, Virginia, and New Jersey.
With its prominent pharmaceutical and biomedical industries, it is not surprising that New Jersey receives a significant amount of FDI investment every year. Recent announcements include China-based IVC in Freehold ($115 million), Norwegian company Padtech in Flemington ($11 million), and UK company Archimedes Pharma's new U.S. headquarters in Bedminster. The New Jersey Economic Development Authority awarded a Business Employment Incentive Program (BEIP) grant for Archimedes Pharma to create up to 75 new jobs. "The BEIP grant from the state was the deciding factor for choosing this U.S. location," indicated president Jeffrey H. Buchalter.
The Midwest is also experiencing biomedical growth. Highlights include Germany-based Evonik Degussa Corporation's $50 million facility in Lafayette, Indiana, that will create 650 jobs. The company is receiving $10 million in tax credits and $200,000 in training grants. Boehringer Ingelheim Vetmedica, another German company, is expanding its R&D operations in Fort Dodge, Iowa ($16.9 million), and its animal health facility in St. Joseph, Missouri ($150 million, 150 new jobs).
"We are expanding our state-of-the-art manufacturing facility in St. Joseph to accommodate the significant global increase in demand for animal health products," explained Colin Meyers, executive director of U.S. Cattle Business and Process Excellence for the company. "We are increasing the size of the plant by more than 50 percent, allowing us to produce several more cattle vaccine product lines."