Strategic outsourcing of R&D: The location-specific advantages of India to the pharmaceutical industry

Companies are increasingly under pressure to be more efficient both in terms of costs and overall performance and thus, they seek new ways to develop their products and innovate. For pharmaceutical industry it can take several decades to launch a new drug to the markets. Since pharmaceutical industry is one of the most research-intensive industries, is outsourcing one way to enhance the R&D processes of such companies. It is said that outsourcing to offshore locations is vastly more challenging and complicated than any other exporting activity or inter-company relationship that has evoked a lot of discussion. By outsourcing strategically, companies must also thoroughly focus on transaction costs and core competences. Today, the suppliers are looked for beyond national boundaries and furthermore, the location of the outsourcing activity must also be thoroughly considered. Consequently, the purpose of this study is to analyze what is known of strategic outsourcing of pharmaceutical R&D to India. In order to meet the purpose of the study, this study tries to answer three sub-questions set to it: first, what is strategic outsourcing, second, why pharmaceutical companies utilize strategic outsourcing of R&D and last, why pharmaceutical companies select India as the location for outsourcing their R&D. The study is a qualitative study. The purpose of the study was approached by a literature review with systematic elements and sub-questions were analyzed through different relevant theories, such as theory of transaction costs, core competences and location advantages. Applicable academic journal articles were comprehensively included in the study. The data was collected from electronic journal article databases using key words and almost only peer-reviewed, as new as possible articles were included. Also both the reference list of the included articles and article recommendations from professionals generated more articles for inclusion. The data was analyzed through thematization that resulted in themes that illuminate the purpose of the study and sub-questions. As an outcome of the analysis, each of the theory chapters in the study represents one sub-question. The literature used in this study revealed that strategic outsourcing of R&D is increasingly used in pharmaceutical industry and the major motives to practice it has to do with lowering costs, accessing skilled labor, resources and knowledge and enhancing their quality while speeding up the introduction of new drugs. Mainly for the above-mentioned motives India is frequently chosen as the target location for pharma outsourcers. Still, the literature is somewhat incomplete in this complex phenomenon and more research is needed.

The effects of location, feedstock availability, and supply-chain logistics on the greenhouse gas emissions of forest-biomass energy utilization in Finland

Forest biomass represents a geographically distributed feedstock, and geographical location affects the greenhouse gas (GHG) performance of a given forest-bioenergy system in several ways. For example, biomass availability, forest operations, transportation possibilities and the distances involved, biomass end-use possibilities, fossil reference systems, and forest carbon balances all depend to some extent on location. The overall objective of this thesis was to assess the GHG emissions derived from supply and energy-utilization chains of forest biomass in Finland, with a specific focus on the effect of location in relation to forest biomass’s availability and the transportation possibilities. Biomass availability and transportation-network assessments were conducted through utilization of geographical information system methods, and the GHG emissions were assessed by means of lifecycle assessment. The thesis is based on four papers in which forest biomass supply on industrial scale was assessed. The feedstocks assessed in this thesis include harvesting residues, smalldiameter energy wood and stumps. The principal implication of the findings in this thesis is that in Finland, the location and availability of biomass in the proximity of a given energyutilization or energy-conversion plant is not a decisive factor in supply-chain GHG emissions or the possible GHG savings to be achieved with forest-biomass energy use. Therefore, for the greatest GHG reductions with limited forest-biomass resources, energy utilization of forest biomass in Finland should be directed to the locations where most GHG savings are achieved through replacement of fossil fuels. Furthermore, one should prioritize the types of forest biomass with the lowest direct supply-chain GHG emissions (e.g., from transport and comminution) and the lowest indirect ones (in particular, soil carbon-stock losses), regardless of location. In this respect, the best combination is to use harvesting residues in combined heat and power production, replacing peat or coal.

Indoor air quality at a waste incineration plant in Finland

Waste has been incinerated for energy utilization for more than a hundred years, but the harmful emissions emitted from the incineration plants did not begin to cause concern until the 1980s. Many plants were shutdown and the waste incineration plant in Kyläsaari Helsinki was one of them. In later years, new landfill regulations have increased the interest in waste incineration. During the last year, four new plants were taken into operation in Finland, Westenergy in Vaasa among them. The presence of dust has been observed indoors at Westenergy waste incineration plant. Dust is defined as particles with a diameter above 10 μm, while fine particles have a diameter smaller than 2.5 μm, ultrafine under 0.1 μm and nanoparticles under 0.05 μm. In recent years, the focus of particle health research has been changed to investigate smaller particles. Ultrafine particles have been found to be more detrimental to health than larger particles. Limit values regulating the concentrations of ultrafine particles have not been determined yet. The objective of this thesis was to investigate dust and particles present inside the Westenergy waste incineration facility. The task was to investigate the potential pollutant sources and to give recommendations of how to minimize the presence of dust and particles in the power plant. The total particle number concentrations and size distributions where measured at 15 points inside the plant with an Engine Exhaust Particle Sizer (EEPS) Spectrometer. The measured particles were mainly in the ultrafine size range. Dust was only visually investigated, since the main purpose was to follow the dust accumulation. The measurement points inside the incineration plant were chosen according to investigate exposure to visitors and workers. At some points probable leakage of emissions were investigated. The measurements were carried out during approximately one month in March–April 2013. The results of the measurements showed that elevated levels of dust and particles are present in the indoor air at the waste incineration plant. The cleanest air was found in the control room, warehouse and office. The most polluted air was near the sources that were investigated due to possible leakage and in the bottom ash hall. However, the concentrations were near measured background concentrations in European cities and no leakage could be detected. The high concentrations were assumed to be a result of a lot of dust and particles present on surfaces that had not been cleaned in a while. The main source of the dust and particles present inside the waste incineration plant was thought to be particles and dust from the outside air. Other activities in the area around the waste incineration facility are ground work activities, stone crushing and traffic, which probably are sources of particle formation. Filtration of the outside air prior entering the facility would probably save personnel and visitors from nuisance and save in cleaning and maintenance costs.

Evaluation of Location Intelligence exploitation in capital-intensive business

As technology has developed it has increased the number of data produced and collected from business environment. Over 80% of that data includes some sort of reference to geographical location. Individuals have used that information by utilizing Google Maps or different GPS devices, however such information has remained unexploited in business. This thesis will study the use and utilization of geographically referenced data in capital-intensive business by first providing theoretical insight into how data and data-driven management enables and enhances the business and how especially geographically referenced data adds value to the company and then examining empirical case evidence how geographical information can truly be exploited in capital-intensive business and what are the value adding elements of geographical information to the business. The study contains semi-structured interviews that are used to scan attitudes and beliefs of an organization towards the geographic information and to discover fields of applications for the use of geographic information system within the case company. Additionally geographical data is tested in order to illustrate how the data could be used in practice. Finally the outcome of the thesis provides understanding from which elements the added value of geographical information in business is consisted of and how such data can be utilized in the case company and in capital-intensive business.

Indoor NO2 air pollution and lung function of professional cooks

Studies of cooking-generated NO2 effects are rare in occupational epidemiology. In the present study, we evaluated the lung function of professional cooks exposed to NO2 in hospital kitchens. We performed spirometry in 37 cooks working in four hospital kitchens and estimated the predicted FVC, FEV1 and FEF25-75, based on age, sex, race, weight, and height, according to Knudson standards. NO2 measurements were obtained for 4 consecutive days during 4 different periods at 20-day intervals in each kitchen. Measurements were performed inside and outside the kitchens, simultaneously using Palm diffusion tubes. A time/exposure indicator was defined as representative of the cumulative exposure of each cook. No statistically significant effect of NO2 exposure on FVC was found. Each year of work as a cook corresponded to a decrease in predicted FEV1 of 2.5% (P = 0.046) for the group as a whole. When smoking status and asthma were included in the analysis the effect of time/exposure decreased about 10% and lost statistical significance. On predicted FEF25-75, a decrease of 3.5% (P = 0.035) was observed for the same group and the inclusion of controllers for smoking status and asthma did not affect the effects of time/exposure on pulmonary function parameter. After a 10-year period of work as cooks the participants of the study may present decreases in both predicted FEV1 and FEF25-75 that can reach 20 and 30%, respectively. The present study showed small but statistically significant adverse effects of gas stove exposure on the lung function of professional cooks.

Facilitatory effects of an auditory warning stimulus in a visual location identification task and a visual shape identification task

The occurrence of a weak auditory warning stimulus increases the speed of the response to a subsequent visual target stimulus that must be identified. This facilitatory effect has been attributed to the temporal expectancy automatically induced by the warning stimulus. It has not been determined whether this results from a modulation of the stimulus identification process, the response selection process or both. The present study examined these possibilities. A group of 12 young adults performed a reaction time location identification task and another group of 12 young adults performed a reaction time shape identification task. A visual target stimulus was presented 1850 to 2350 ms plus a fixed interval (50, 100, 200, 400, 800, or 1600 ms, depending on the block) after the appearance of a fixation point, on its left or right side, above or below a virtual horizontal line passing through it. In half of the trials, a weak auditory warning stimulus (S1) appeared 50, 100, 200, 400, 800, or 1600 ms (according to the block) before the target stimulus (S2). Twelve trials were run for each condition. The S1 produced a facilitatory effect for the 200, 400, 800, and 1600 ms stimulus onset asynchronies (SOA) in the case of the side stimulus-response (S-R) corresponding condition, and for the 100 and 400 ms SOA in the case of the side S-R non-corresponding condition. Since these two conditions differ mainly by their response selection requirements, it is reasonable to conclude that automatic temporal expectancy influences the response selection process.

Relationship between pulmonary function and indoor air pollution from coal combustion among adult residents in an inner-city area of southwest China

Few studies evaluate the amount of particulate matter less than 2.5 mm in diameter (PM2.5) in relation to a change in lung function among adults in a population. The aim of this study was to assess the association of coal as a domestic energy source to pulmonary function in an adult population in inner-city areas of Zunyi city in China where coal use is common. In a cross-sectional study of 104 households, pulmonary function measurements were assessed and compared in 110 coal users and 121 non-coal users (≥18 years old) who were all nonsmokers. Several sociodemographic factors were assessed by questionnaire, and ventilatory function measurements including forced vital capacity (FVC), forced expiratory volume in 1 s (FEV1), the FEV1/FVC ratio, and peak expiratory flow rate (PEFR) were compared between the 2 groups. The amount of PM2.5 was also measured in all residences. There was a significant increase in the relative concentration of PM2.5 in the indoor kitchens and living rooms of the coal-exposed group compared to the non-coal-exposed group. In multivariate analysis, current exposure to coal smoke was associated with a 31.7% decrease in FVC, a 42.0% decrease in FEV1, a 7.46% decrease in the FEV1/FVC ratio, and a 23.1% decrease in PEFR in adult residents. The slope of lung function decrease for Chinese adults is approximately a 2-L decrease in FVC, a 3-L decrease in FEV1, and an 8 L/s decrease in PEFR per count per minute of PM2.5 exposure. These results demonstrate the harmful effects of indoor air pollution from coal smoke on the lung function of adult residents and emphasize the need for public health efforts to decrease exposure to coal smoke.

Location intelligence strategisen päätöksenteon tukena

Kilpailuetua tavoittelevan yrityksen pitää kyetä jalostamaan tietoa ja tunnistamaan sen avulla uusia tulevaisuuden mahdollisuuksia. Tulevaisuuden mielikuvien luomiseksi yrityksen on tunnettava toimintaympäristönsä ja olla herkkänä havaitsemaan muutostrendit ja muut toimintaympäristön signaalit. Ympäristön elintärkeät signaalit liittyvät kilpailijoihin, teknologian kehittymiseen, arvomaailman muutoksiin, globaaleihin väestötrendeihin tai jopa ympäristön muutoksiin. Spatiaaliset suhteet ovat peruspilareita käsitteellistää maailmaamme. Pitney (2015) on arvioinut, että 80 % kaikesta bisnesdatasta sisältää jollakin tavoin viittauksia paikkatietoon. Siitä huolimatta paikkatietoa on vielä huonosti hyödynnetty yritysten strategisten päätösten tukena. Teknologioiden kehittyminen, tiedon nopea siirto ja paikannustekniikoiden integroiminen eri laitteisiin ovat mahdollistaneet sen, että paikkatietoa hyödyntäviä palveluja ja ratkaisuja tullaan yhä enemmän näkemään yrityskentässä. Tutkimuksen tavoitteena oli selvittää voiko location intelligence toimia strategisen päätöksenteon tukena ja jos voi, niin miten. Työ toteutettiin konstruktiivista tutkimusmenetelmää käyttäen, jolla pyritään ratkaisemaan jokin relevantti ongelma. Konstruktiivinen tutkimus tehtiin tiiviissä yhteistyössä kolmen pk-yrityksen kanssa ja siihen haastateltiin kuutta eri strategiasta vastaavaa henkilöä. Tutkimuksen tuloksena löydettiin, että location intelligenceä voidaan hyödyntää strategisen päätöksenteon tukena usealla eri tasolla. Yksinkertaisimmassa karttaratkaisussa halutut tiedot tuodaan kartalle ja luodaan visuaalinen esitys, jonka avulla johtopäätöksien tekeminen helpottuu. Toisen tason karttaratkaisu pitää sisällään sekä sijainti- että ominaisuustietoa, jota on yhdistetty eri lähteistä. Tämä toisen tason karttaratkaisu on usein kuvailevaa analytiikkaa, joka mahdollistaa erilaisten ilmiöiden analysoinnin. Kolmannen eli ylimmän tason karttaratkaisu tarjoaa ennakoivaa analytiikkaa ja malleja tulevaisuudesta. Tällöin ohjelmaan koodataan älykkyyttä, jossa informaation keskinäisiä suhteita on määritelty joko tiedon louhintaa tai tilastollisia analyysejä hyödyntäen. Tutkimuksen johtopäätöksenä voidaan todeta, että location intelligence pystyy tarjoamaan lisäarvoa strategisen päätöksenteon tueksi, mikäli yritykselle on hyödyllistä ymmärtää eri ilmiöiden, asiakastarpeiden, kilpailijoiden ja markkinamuutoksien maantieteellisiä eroavaisuuksia. Parhaimmillaan location intelligence -ratkaisu tarjoaa luotettavan analyysin, jossa tieto välittyy muuttumattomana päätöksentekijältä toiselle ja johtopäätökseen johtaneita syitä on mahdollista palata tarkastelemaan tarvittaessa uudelleen.