The majority of R&D expenditure by pharmaceutical firms is spent on clinical and pre-clinical trial stages. EU regulations for pharmaceutical drugs entail rigorous testing and cost-benefit analyses before they are released to the market. Clinical trials entail high costs due to the involvement of larger numbers of participants over extended periods of time, accounting for 44% of R&D expenditure. Europe's pharmaceutical industry is encountering heightened competition from emerging economies, including China and Korea. These countries are experiencing rapid growth in both market size and research capabilities, leading to a migration of economic and research activities away from European markets. This trend underscores the need for European pharmaceutical firms to adapt to evolving global dynamics and remain competitive in an increasingly interconnected landscape.