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Abstract - Quest for Global Competitiveness - Universidad de Puerto ...

Abstract - Quest for Global Competitiveness - Universidad de Puerto ...

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An officer of a national (i.e., US) bioscience research institution contrasted the<strong>de</strong>veloped cluster with the emergent cluster region and commented that “the secret <strong>for</strong>biotech success is having experienced venture capital, experienced management, and a serialentrepreneurial culture.” He indicated that the emergent cluster’s “world classpharmaceutical industry background” provi<strong>de</strong>d a plat<strong>for</strong>m <strong>for</strong> the Island (i.e., <strong>Puerto</strong> Rico) tomove into the biotechnology area. But, he ad<strong>de</strong>d, that bioscience is a” lot bigger than justfocused biopharmaceutical, and research and testing.” There was room <strong>for</strong> clusters like<strong>Puerto</strong> Rico to “capitalize on their distinct strengths” and carve “successful niche strategies.”The general manager from one of the MNC anchor plants in <strong>Puerto</strong> Rico, agreed, andsuggested that the emergent bioscience cluster’s competitiveness could be improved by“capitalizing on the Island’s industrial manufacturing experience and strengths.”DISCUSSIONOur research revealed a paradox regarding the intensity of <strong>for</strong>eign direct investment(FDI) by multinational companies (MNCs), and the limited <strong>de</strong>velopment of a localentrepreneurial ecosystem in an emergent bioscience cluster. While cluster <strong>de</strong>velopmentseems a logical outcome of MNC investment, our study <strong>de</strong>monstrated it is not a <strong>for</strong>egoneconclusion. Our research of <strong>Puerto</strong> Rico’s bioscience cluster experience sheds light on a keytheoretical and policy issue: to what extent can the <strong>de</strong>velopment strategy of attracting FDIfrom global multinationals be leveraged to transfer knowledge and <strong>de</strong>velop indigenousinnovation capabilities? <strong>Puerto</strong> Rico, one the most open economies in the world, exportingand importing more than $105 billion worth of goods every year, with levels of FDI (118%of 2007 GDP), comparable to that of Ireland Taiwan, and Singapore (GovernmentDevelopment Bank <strong>for</strong> <strong>Puerto</strong> Rico, 2008), has pursued <strong>for</strong> over 50 years an economic27

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