Biotech companies tend to spring up around clusters. In the US, some of the biotech clusters are around Boston, Chicago, San Francisco, etc. Similarly in Europe the Berlin region is one of the major biotech clusters. Factors such as research institutions, universities, venture capital, strong government support, etc. tend to encourage the growth of clusters.
The following infographic shows some of the fascinating details of the Berlin biotech ecosystem:
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Source: Labiotech.eu