Biotechnology

Operation profile

The biotechnology industry encompasses a wide range of applications, such as pharmaceuticals, medical testing, agriculture, environmental management, and DNA fingerprinting. Biotechnology is one of the most research-intensive industries in the world.

The representative operation modeled is a "pure" biomedical research facility with no commercial sales. As detailed in the following table, this operation is characterized by:

  • A leased office/laboratory facility with significant investment in R&D equipment
  • A workforce consisting primarily of research scientists and technicians
  • A significant level of tax-eligible R&D activities.

The business is assumed to operate as a fully owned subsidiary of a parent firm, with revenue allocated to the business on a "cost-plus-10 percent" basis.
 

Summary of operating parameters

Industry: Biotechnology

Operation: Biomedical R&D

Facilities requirements
Class A office space leased - ft2 (4,181 m2)
45,000

Other initial investment requirements
   Machinery and equipment - US $'000
$500
   Office equipment - US $'000
$500
   R&D equipment - US $'000
$4,000 
   Inventory - US $'000
--
   Equity financing - % of project costs
100%

Workforce
   Management
6
   Sales and administration
12
   Dedicated product development
47
   Other
1
 
Total employees
66

Energy requirements
   Electricity: monthly consumption demand - kWh
75,000

Other annual operating characteristics
   Sales at full production - US $'000
**
   Other operating costs - US $'000
$2,000
   Investment in tax-eligible R&D - % of sales
17%

** This operation represents a cost center. For taxation purposes, corporate revenue allocated to the operation is assumed to be cost-of-operation, plus 10% markup.

International results

International results are illustrated in the following chart. These results reflect the combined impact of 26 location-sensitive cost components applied to the modeled operation. Detailed results for these countries, by individual cost component, are available as a separate table.

City results

The following table profiles results for selected cities, by country, from among the 111 cities featured in this report. Results for all other cities included in the study can be found in the Results lookup section of this website.

Results for selected cities
Industry: Biotechnology
Operation: Biomedical R&D
North America – selected cluster cities
Country and CityIndex & Rank1
CAEdmonton, AB72.316
 Montreal, QC73.117
 Quebec City, QC66.96
 Saskatoon, SK71.412
 Toronto, ON73.719
MXMexico City, DF56.12
 Monterrey, NL51.41
USAtlanta, GA92.188
 Austin, TX95.396
 Baltimore, MD92.589
 Boston, MA102.5106
 Chicago, IL95.295
 Indianapolis, IN86.359
 Minneapolis, MN88.067
 Raleigh, NC88.774
 San Diego, CA100.8101
 San Francisco, CA107.4111
1  Rank among 111 featured cities.
 
 
 
International locations – all cities
Country and CityIndex & Rank1
AUAdelaide74.722
 Brisbane78.827
 Melbourne75.624
 Sydney79.328
FRMarseille74.221
 Paris84.647
GEBerlin81.730
 Frankfurt83.942
ITMilan80.429
 Rome76.926
JPOsaka83.640
 Tokyo91.284
NLAmsterdam73.820
 Rotterdam72.215
UKLondon102.7107
 Manchester76.725
1  Rank among 111 featured cities.

 
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