Factors of Pharmaceutical Enterprises Localization—the Case of the Largest Pharmaceutical Companies in Russia

Abstract

The purpose of the article is to identify the factors of pharmaceutical enterprises localization in the Russian regions, including from the point of view of assessing the possible contribution of pharmaceuticals to the reduction of territorial disparities in the level of economic development. The analysis of factors of pharmaceutical production localization is carried out based on the generalization of foreign studies and the database of production enterprises of more than 50 largest pharmaceutical companies in Russia compiled by the authors (taking into account the time of construction and large-scale modernization of enterprises, belonging to Russian or foreign owners). It is concluded that in Russia, the same factors of pharmaceutical enterprises localization are emerged as abroad: the remaining importance of historically developed production centers is typical, including in the eastern regions of the country (due to the lower importance of the transport factor for the industry), often, the preference is given to expanding the capacity of existing enterprises, rather than building new ones; new plants arise on the base of developed centers of pharmaceutical research and/or with a focus on the sales markets of the largest urban agglomerations and/or in special economic zones, industrial parks. When building new enterprises, investors can seek both to participate in pharmaceutical clusters and to save on production costs, including wages—by building factories in areas that are “unsaturated” with production. The main feature of foreign investment is their arrival only in the western regions of the country due to their large sales market and proximity to the countries of companies’ origin that are mainly European. As a result of the action of numerous factors, the impact of the development of pharmaceutical production on territorial disparities is ambiguous.