North American and European countries top fDi’s first ever biotech sector power rankings.
To examine the attractiveness of countries for biotech investment, fDi examined first the countries’ general FDI attractiveness for knowledge-intensive industries (Part 1). Factors measured through various indices include the macroeconomic environment, total inward investment projects and property rights protection.
The next step was to identify indices of FDI attractiveness specific to the biotech industry, such as R&D capabilities and scientific output (Part 2).
The charts on the following pages show that the top countries have a relatively balanced spread of points in Part 1 and Part 2.
In order to be successful in attracting inward investment from biotech companies, a country needs to have both a good macro environment for knowledge-intensive industries as well as specialised biotech-focused location advantages.
Countries nearer the bottom of the list tend to have high points only in Part 1 or Part 2, and the fact that these countries do not appear in the FDI project market share rankings verifies that both parts are seen as crucial by investors.
Research by Antonios Kalyvas.