The pharmaceutical sector has undergone many changes, particularly in the past several decades. The purpose of this research was to ascertain the existence of further changes to the division of labour and changes in the markets for technology within the sector. This research was also undertaken to understand the specific issues that may be impacting the division of labour and the changes in the markets for technology including the role of finance and the role of a surplus of unexploited knowledge. The division of labour between large and small new firms was initially more pronounced as the fully integrated firms continued to develop, manufacture and market drugs while 'classical biotechnology' firms pursued an exploratory business model of supplying knowledge and early stage drug candidates to these fully integrated companies (McKelvey, 2008). However, firms are changing in this sector and changes may be evident that have not been discussed in the literature to date. A new type of firm is evident within this sector, the No Research Development Only (NRDO) firm, as well as changes in the existing firms. This has impacted markets for technology as changes are also apparent in the way in which firms exchange products and knowledge. A combined quantitative and qualitative study was used to answer the research questions. A random sample of 100 EU and US companies that own and develop drug products was generated. Descriptive statistics were gathered to form a database of information and case studies were compiled to provide in-depth data related to a sample of eight firms. The newly identified NRDO firms do not possess internal capabilities to discover their own products; surprising given the historically research intensive nature of the types of small firms that operate in this sector. There also appears to be changes in the markets for technology as large firms are selling drug candidates to these hitherto research-intensive discovery and development (DD) firms who are willing to in-license these drug candidates to bolster pipelines and financial valuations. Markets for knowledge in this sector have undoubtedly evolved and a more complex set of arrangements are evident. The roles of finance and a surplus of unexploited knowledge have played an important part in these changes as the sustained level of exploration in the sector has resulted in a greater number of exploitation opportunities. Overall there is evidence to support further evolution in the sector.

The purpose of this essay is to find how Location specific factors affect the FDI of MNEs.This is done through the use of Dunning's eclectic paradigm, mainly the L-factor of OLI. TheL-factor is then combined with market agglomeration and unexploited markets as aframework to find location as a motivator for companies´ FDI. We also use Dunning’s fourmotivations for FDI when trying to find how Location affected FDI.Three companies are interviewed in semi-structured interviews to ensure their views on thesubject can transpire but still keep them within the subject at hand. We found that all thecompanies we interviewed mainly looked for agglomerated markets, access to markets,customers and access to competent people within the markets when deciding which market tosettle in. We also found that unexploited markets were not something the companies weinterviewed were searching for nor valued highly in their investment decision. This has to dowith the fact that we only interviewed three companies and did not interview in a wideenough range of industries to be able to conclude our findings.