Foreign Direct Investment (FDI) and the Life Science Industry in the Gothenburg Region

Abstract

This study aimed to identify why foreign-owned life science companies decide to locate abroad and also to identify the challenges that the companies experience. The Gothenburg region was chosen to investigate as a practical case. The study was performed through a qualitative study conducted through primary data (interviews) and secondary data. From the organization Business Region Gothenburg (BRG), we received data of foreign-owned life science companies located in the Gothenburg region. The literature review was mainly based on Dunning’s (2009) four FDI location motives; resource seeking, market seeking, efficiency seeking, and strategic asset-seeking. Also, the challenges that companies may experience abroad were investigated. Our findings concluded that most of the companies mainly located themselves in the region due to market seeking and strategic asset-seeking motives. This was done mainly to increase their sales or to acquire knowledge and technological capabilities.