Adapting a foreign direct investment strategy to the knowledge economy: the case of Singapore's emerging biotechnology cluster

Abstract

The Singapore Government has identified biotechnology as one of the four pillars of the economy for the twenty‐first century. For the last forty years, Singapore has pursued a very successful economic growth strategy of attracting investment from leading multinationals through a combination of financial incentives, world‐class infrastructure, a highly literate workforce and a business‐friendly regulatory environment. In the biotechnology industry worldwide, however, the typical development pattern has been very different: new start‐up companies backed by venture capitalists clustered around leading research universities. This article examines the development of the biotechnology cluster in Singapore, showing how a modified version of Singapore's traditional growth model is co‐existing with a more typical biotechnology development pattern.

Notes

Entrepreneurship Centre, National University of Singapore, Singapore 118412, [email protected]

Keck Graduate Institute, Strategy & Organization Studies, 535 Watson Dr., Claremont, CA 91711, (909) 607‐9651, [email protected]

These include Gilead, Affymetrix, and Lynx. Interview. Dr. Beh Swan Gin.

Date established in Singapore

Sources are from company websites or the US Securities and Exchange Commission unless otherwise indicated.

http://www.schering‐plough.com.sg/spsingapore.htm. Accessed Jun 1, 2003.

http://www.asiabiotechnology.com.sg/kh‐biotechnology/readmore/vol6/v6n08/wyeth.html. Accessed Jun 1, 2003

Establishment date of Sales and Marketing arm

Approximately 150 employees in manufacturing while the remaining are employed in sales, marketing and administration. http://www.biomed‐singapore.com/bms/browse_print.jsp?artid=79. Accessed Jun 1, 2003.

On April 16, 2003 Pharmacia was acquired by Pfizer.

http://www.noonanrusso.com/news/surromed/01news/surro09.24.html. Accessed June 7, 2003

Additional information

Notes on contributors

David Finegold

Entrepreneurship Centre, National University of Singapore, Singapore 118412, [email protected] Keck Graduate Institute, Strategy & Organization Studies, 535 Watson Dr., Claremont, CA 91711, (909) 607‐9651, [email protected]