INDUSTRIAL-CHANGE AND REGIONAL-DEVELOPMENT - THE CASE OF THE US BIOTECHNOLOGY AND PHARMACEUTICAL INDUSTRIES

We examine the arguments surrounding the location and organization of innovative firms and examine the prospects for industry renewal and re gional rejuvenation. We examine the effect of technological breakthrou ghs in the biotechnology industry on the organization and location of production with respect to mature and emergent regions. We find that, despite losing much of their preeminence in research and development, traditional firms in mature regions have managed to 'capture' a substa ntial amount of manufacturing and marketing. The drug-development expe rience, manufacturing capabilities, and marketing channels of more est ablished companies in mature regions are turning out to be major sourc es of competitive advantage.