Biotechnology

Value Chains

About Value Chains

The Biotechnology Value Chain

Broadly defined as a collection of tools and technologies that use living cells and their molecules to make products and solve systems, biotechnology as an industry has a wide range of applications. Since a majority of the work currently being done in North Carolina is based in the research, product development, and manufacturing of pharmaceutical applications, these areas are the focus of the value chain pictured above.

Biotechnology development is a costly and long-term process that involves ethical issues, government policy, complicated business development, investors, extended periods for development and testing, and typically large sums of money. A low cost of doing business, high quality of life, excellent universities, and long term commitment from public and private actors continue to make NC a global leader in biotechnology; especially with respect to discovery, product development, and manufacturing. Many companies choose to operate in NC because of its research university network, the workforce training the state offers, and the high concentration of Contract Research Organizations.

Map - North Carolina's Biotechnology Companies, 2007

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Discovery Section of Industry Value Chain

Product Section of Industry Value Chain

Manufacturing Section of Industry Value Chain

Sales Section of Industry Value Chain

References

1. Milken Institute, October 2004. "Biopharmaceutical Industry Contributions to State and U.S. Economies."
   
2. Window on the Workplace 2003: A Training Needs Assessment for the Bio-manufacturing Workforce. North Carolina Biotechnology Center, Education and Training Program, March 2003.
   
3. Ibid.
   
4. The Pharmaceuticals-Biotechnology Interface: Partnership Strategies in a Dynamic Environment, Roland Berger Strategy Consultants, 2002.
   
5. Roland Berger Strategy Consultants (fn. 4) and The Pharmaceutical Outsourcing Outlook 1998-2003, Reuters Business Insight, 1998.
   
6. Milken Institute (fn. 1).
   
7. Sumit Agarwal, Sanjay Desai, Michele M. Holcomb and Arjun Oberoi. "Unlocking the Value in Big Pharma." The McKinsey Quarterly, 2001 Number 2.
   
8. Window...(fn. 2).
   
9. Window...(fn. 2).
   
10. Window...(fn. 2), Milken Institute (fn. 1), and New Jobs Across North Carolina: A Strategic Plan for Growing the Economy Statewide through Biotechnology, North Carolina Biotechnology Center, Research Triangle Park, NC, January 2004.
    
11. Bernardo Batiz-Lazo and Sarah Holland, 2002. "Strategy and structure of the pharmaceutical industry," Industrial Organization 0211018, Economics Working Paper Archive at WUSTL.
    
12. Ibid.