If the US is no longer the centre of scientific gravity, now what?
A New World Order is reshaping geopolitics but also the scientific sector. And your company may already be behind.
The scientific research and funding landscape is changing. The US is losing its dominance as a research funder, protectionism is on the rise and established institutions like the NIH and FDA are facing new challenges. This shift is creating a structural realignment that will impact every pharma, Biotech and scientific tools provider.
Decentralised power base: Reduced US research funding means companies must look beyond traditional markets to geographically widespread, non-traditional regions like China, South Korea, Singapore and MENA. This demands local knowledge and a physical presence.
Anti-globalisation: Rising protectionism and trade wars (e.g. tariffs) will force a re-evaluation of global production networks and supply chains, increasing costs and impacting competitiveness.
Challenges to existing institutions: Institutions like the NIH and FDA are grappling with political oversight, and funding and staffing cuts which means they will need to "do more with less." This will slow grant and drug approvals, creating bottlenecks for innovation.
Control of information: Threats to scientific autonomy, such as potential bans on where scientists can publish or political interference in research, undermine science's role in policy and innovation, further eroding the US's research powerhouse status.
We can sum this up in one word: FRAGMENTATION. The scientific tools and services market is fragmenting. Managing in this new environment requires a fundamentally different approach, one many companies have never had to prepare for.
To survive and thrive in this fragmented market, scientific companies will need:
Cost leadership: Serving a fragmented market is expensive. Companies not in a cost leadership position will struggle to survive.
Clear strategic intent: Companies need a well-defined strategy. Numerous, smaller markets demand clear choices on where to play and how to win. No one will have the resources to go after more than a few.
Local execution capability: Success in new, nuanced and culturally diverse markets hinges on devolving decision-making to the local level and having local feet on the ground. Companies that have succeeded in diverse markets like Europe may have the upper hand.
This is uncharted territory for most scientific tools and services providers. The winners will be those who understand this fundamental shift and plan now.