Go East? Multinational Companies in the Czech Life Sciences

Abstract

This article provides a qualitative analysis of the developments in the life sciences industry in Central and Eastern Europe and in the Czech Republic in particular. It begins by exploring the current state and the prospects of the life sciences industry in the region. Subsequently, it analyses the strategies of global multinational companies who are perceived to be the main driving force in the sector. In doing so, we follow the new stream in the international business literature and focus on the subsidiaries, rather than parent companies. Moreover, we specifically look at the subsidiaries possessing research capabilities. The transition dynamics and the membership in the European Union are helpful for this analysis. Finally the paper provides policy recommendations, arguing that more attention should be given to already established subsidiaries rather than pure attraction of new flows of foreign direct investment.