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Jones Lang LaSalle Reveals 16 U.S. Regions Vying as Established or Emerging Markets for Life Sciences Industry
Date:11/28/2011

dge, Mass.

The Drive for Discovery and Innovation

The drive for discovery and innovation is causing life sciences companies to rethink the way they make location decisions, creating a new focus on balancing the real estate costs of established life sciences clusters with their increased efficiency in generating innovation.

"While real estate costs are higher within the most established clusters, the intellectual capacity and enhanced odds of discovering the next powerful, profitable drug justifies the price premium," said Barrett. "Since ideas are the new currency of the modern enterprise, the knowledge workers within established clusters can compete globally based on the quality of their innovation, regardless of the hard costs of location."

This dynamic is bifurcating in what regions the drug discovery process takes place, with discovery aspects likely to remain in-house and in already established, high-cost clusters while testing and viability measures will leverage the lower costs of emerging clusters – both in the U.S. and globally - via contract research organizations (CROs) and other outsourced resources.

Global Landscape

Though the United States, along with Europe and Japan, continues to be a world leader in the life sciences sector, especially in the R&D aspects of the value chain, emerging clusters in regions such as Brazil, India, China and others located throughout Asia and Latin America are playing a more prominent role.

Manufacturing facilities represent a large share of operations in emerging clusters, and while investment in non-R&D facilities experienced a pause during the recession, Barrett expects to see investments return to emerging clusters as we come out of the recession.  "Factors such as growing economies, large populations, rising personal income levels and progressive political policies in emerging clusters encourage growth and direct investment from indust
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SOURCE Jones Lang LaSalle
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