TITLE:
Competition Strategy and Geographical Proximity of Contract Research Organizations
AUTHORS:
Tannista Banerjee, Arnab Nayak
KEYWORDS:
Contract Research Organizations, Pharmaceutical, R & D, Outsourcing
JOURNAL NAME:
Theoretical Economics Letters,
Vol.7 No.5,
August
11,
2017
ABSTRACT: We investigate the evidence for geographical proximity of contract research
organizations (CROs) in the United States. We examine whether CROs locate
near each other for knowledge spillover motivation, or whether they avoid
each other as a competition strategy. If they are not located near to each other,
then they are not likely to cooperate, or source knowledge from each other.
We use a spatial pattern approach and find that CROs are located spatially in
the United States. CROs do not consistently access localized knowledge from
other CROs, rather they avoid each other and establish in isolated locations to
capture the entire market.