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Five years ago, only a few global biopharma companies had made significant R&D investments in China. But the growth potential—in terms of both the quantity and quality of investments—was unmistakable. We predicted that most major biopharmas would steer more of their R&D activities to China, mainly to access the domestic market but also to tap greater efficiencies—the standard fare of offshoring opportunities. As public and private investments swelled, multinationals would inevitably set their sights higher. They would focus not simply on sourcing but on partnering, and not only on curbing costs but also on spurring innovation.
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