Internationalization of R&D Activities in the Pharmaceutical Industry
Mikio Sasabayashi (Former Senior Researcher, Pharmaceuticals and Industrial Policy Research Institute)
Takashi Yagi (Senior Researcher, Pharmaceuticals and Industrial Policy Research Institute)
(No.41: Published in July 2008)
Using inventor information on patents filed by pharmaceutical companies, we analyzed the actual status of internationalization of R&D activities in the pharmaceutical industry. In addition, we took Shanghai, China, where the concentration of research bases of major pharmaceutical companies is increasing, as a case study and discussed the factors influencing the location of R&D bases.
The results of the analysis of the number of patents from the companies' perspective revealed that for Western pharmaceutical companies, inventions in foreign countries are outpacing the growth of inventions in their own countries, indicating that international R&D activities are becoming increasingly important. Japanese companies, on the other hand, have a lower percentage of inventions in foreign countries than European and U.S. pharmaceutical companies, suggesting that they are conducting R&D activities mainly in their home countries. The results of the analysis of the number of patents from the perspective of countries indicate that the largest number of patents were invented in the U.S., and that in addition to U.S. companies, European and Japanese companies are actively conducting R&D activities in the U.S., indicating that the U.S. is an international center of drug discovery research. On the other hand, although Japan has the second largest number of patents after the U.S., the main players in this field are Japanese companies, and the percentage of patent applications filed by foreign companies is 10%, which is lower than that of the U.S. and Europe.
The internationalization of R&D activities of pharmaceutical companies, which is progressing in search of attractive R&D resources, means that we are entering an era in which companies are choosing their countries. In this trend, competition among countries seeking to become international drug discovery research centers is expanding and intensifying not only in developed countries but also in emerging countries. In China, which was chosen as a case study, a preferential system for foreign companies to establish R&D centers and a system and facilities to invite outstanding researchers from overseas have been established, and the successive establishment of R&D centers by Western pharmaceutical companies can be regarded as the result of these efforts. The opening of R&D centers by U.S. and European pharmaceutical companies can be regarded as a result of these efforts. As international competition over the "place" for R&D activities by pharmaceutical companies intensifies, there is a growing need to view R&D activities from an international perspective. The need is greater than ever to create an environment that makes Japan a truly attractive "venue" for foreign companies with high scientific and technological capabilities and outstanding researchers to gather beyond national borders.