Fostering the Italian Biotechnology Industry

1
Fostering the Italian Biotechnology Industry
2
Methodology

• Analysis of market potential
• Definition of a strategy for Italy
• Identification of market imperfections
• Existing programs and institutions in Italy
• Recommendations
• Implementation

3
Analysis of market potential

• Concentrations of potential entrepreneurs are
  localised in Milano and Roma
• An in-depth study on specialisation of
  researchers in the Milano and Roma areas is
  needed
• Laws and regulations should be analysed and
  redefined in order to create an appropriate
  environment for the Biotech industry
• A Biotech incubator shouldnt be considered a
  regional development tool, but it should be
  localised where the success possibilities are
  highest
• Even if the number of researchers doesnt seem to
  be important in other geographical areas in
  Italy, the specialisation of universities in
  other Italian towns should be analysed (we could
  find out that a minor university is to be
  considered a best practice in a particular
  specialisation area, in this case the possibility
  of creating an incubator next by this university
  should be considered
• The pharma industry traditionally plays an
  important role ion the Italian economy

4
Definition of a strategy for Italy

• The pharma and food industries always played an
  important role in the Italian economy. These two
  sectors are gradually losing their
  competitiveness, the Biotech can be an
  opportunity to try to keep them competitive.
• The growth rate in terms of new companies should
  reach 15/year (Europe 16, USA 8)
• The growth rate in terms of employees should
  reach 15/year (Europe 6, USA 7)
• The Government should play a key role for the
  development of the sector (also as a response to
  other EU initiatives)

5
Market imperfections

• Potential entrepreneurs have a high risk aversion
  (also as a consequence of the specificity of the
  Italian labour market which is less flexible
  compared to other EU countries)
• Lack of human resources with both scientific and
  management education
• Lack of available seed capital
• The existing support measures are not well known
  and are considered too difficult and time
  consuming to deal with from an administrative/bure
  aucracy point of view
• RD and innovation in relevant sectors is low
• The law 297 leaves the universities free to chose
  their own policy for the exploitation of ideas
  developed by professors (the policies are not
  clear yet)

6
Institutions and existing programmes

• The law 297 and the Startech programme are
  horizontal. They do not foresee any specific
  measure for the biotech industry which has
  different needs compared to other traditional
  sectors
• Biopolo its main target is composed by the
  researchers of the Bicocca university. Biopolo
  scarcely succeeds in creating new companies
  because of the low entrepreneurial attitude of
  the university researchers and for a lack of seed
  capital. The creation of a common infrastructure
  (incubator) is foreseen, but it is not operative
  yet
• The creation of a Biotech incubator in Catania is
  foreseen

7
Recommendations 1

• To create 3 incubators specialised in Biotech
  (Roma, Milano, Firenze/Pisa)
• The incubator should be a private structure
  co-financed by the Government
• To limit the operatively of the incubator to 8/10
  years
• To define success indicators (continuous
  monitoring)
• To carry out an analysis of Biotech incubators in
  USA, France, Germany, and to analyse the bidding
  dossier prepared in Israel

8
Recommendations

• The incubator should
• make a screening of the projects
• provide seed capital, directly or through
  existing measures (1 MEURO according to the
  projects)
• spread entrepreneurial culture
• provide management assistance
• provide business development assistance
• maintain direct contacts with VCs
• provide common infrastructure (evaluating the
  possibility of exploiting pre-existing
  infrastructure
• support clustering
• maintain direct contacts with consultants (IPR,
  etc.)

9
implementation

• A steering committee aimed at making uniform
  policies at a national level, at identifying best
  practices and at quickly proposing necessary
  changes should be created
• The incubators should work independently
  (selection process, equity position, business
  development, etc.)
• Each incubator should host an average of 8
  projects
• Professional management should include business
  development managers