Alternate signs of life: The growth of biotechnology industries in Shanghai and Bangalore

This paper explores the emergence of biotechnology centers in Shanghai and Bangalore by comparing their development to best practices in the literature for biotechnology cluster growth and development. Interviews with over fifty biotech companies and related institutions in China and India indicate that these regions are developing alternate models of low cost manufacturing and services that build on the current local base of knowledge and expertise. The ability to convert research into successful commercial activity was identified in both regions. The strong research capacity, private sector funding, and entrepreneurial environment deemed critical best practices were limited. New growth theory is used to explain these alternate approaches to technological and social change.

Research Highlights► Bangalore is building a biotechnology sector based on expertise in contract services. ► Shanghai is building a biotechnology sector based on low cost manufacturing. ► Bangalore and Shanghai are following growth models that differ from best practices. ► New growth theory is useful for explaining these alternate approaches to change.