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The spatiotemporal context affects corporate behavior because any corporate activity is carried out in a specific time and space. Based on an examination on the research and development (R&amp;D) expenditures of 284 listed biopharmaceutical companies in China, this study finds that the innovation space of the biopharmaceutical industry presents a spatial "North-South" pattern. The spatial gravity center of the biopharmaceutical industry's R&amp;D investment has been shifting to the eastern coastal region. This spatiotemporal context will impact the R&amp;D investment of biopharmaceutical companies. Research shows that the distance between biopharmaceutical companies and the gravity center has a direct impact on the R&amp;D expenditures of biopharmaceutical companies. This study supports the context-sensitive thesis and shows how the spatiotemporal context affects the R&amp;D investment of biopharmaceutical companies while controlling firm-level factors.

Determinants of biopharmaceutical R&D expenditures in China: the impact of spatiotemporal context