This paper focuses on the clustering dynamics based on/supported by R&D offshoring trends as exemplified by the biopharmaceutical sector in China. It suggests two baselines of the institutional arrangements appropriate to initiate innovation-based clusters: (1) emphasis on the linkages and expansion in global innovation networking, and (2) focus on breeding regional innovation networks and enterprise’s embeddedness. Above, especially in pharmaceuticals and biotechnology, these two-dimension baselines are closely intertwined and develop by means of R&D offshoring and clustering dynamics, as it is demonstrated by the case-study of interaction and co-evolution between Chinese and multinational pharmaceutical companies (MPCs).
JEL Codes: F23, L24, L65, O32