Area Development
"A perfect storm" of complex macro and micro factors have forced the life sciences industry to re-examine traditional business models and location strategies, and "rebalance their portfolio of assets among regions of the world," according to a new Jones Lang LaSalle (JLL) study. Struggling economies, increased competition, pricing pressure, depleted new-product pipelines and heightened regulatory processes "have all strained profitability, influencing the industry's facility and location decisions," reveal the Global Life Sciences Cluster Report.

Major life sciences companies continue to center their headquarter relocations and biotech start-up/innovation activity in clusters within Europe, the U.S. and Japan, notes the report. However, "the emerging markets of Brazil, India, China and others throughout Asia and Latin America are becoming more competitive. Increasingly they are trying to balance their operations among the Americas, EMEA (Europe, the Middle East and Africa), and Asia Pacific."

The research shows that emerging market governments in Asia and Latin America are making significant capital investments. They also are improving political policies to become more competitive in high-tech aspects of the industry and be in contention for CRO opportunities. For example, "massive" research parks in these emerging global clusters are fuelling growth in R&D. Related highlights from the study reveal that:

Although emerging clusters are playing a more prominent role in the global life sciences industry, the study states that "Europe, the United States and Japan are undoubtedly still world leaders in the sector, especially in the R&D aspects of the value chain."