reth, 2001).
The choice of location for pharmaceutical research and development laboratories is a function of the availability of factors such as high-quality human capital, well-developed transportation systems, and urban amenities. Typically, pharmaceutical companies locate their research and development operations in central locations in their home country. They develop and initially market new drugs from their home country locations. As technology matures and labor costs become an increasingly competitive factor, production moves to locations nearer to major consumer populations (Weschler, 2002). Novartis follows such a strategic pattern.
Geographically, the largest concentration of Novartis' sales are in the countr
...