Global Horizons in Biotechnology

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Global Horizons in Biotechnology

• Gurinder Shahi, MBBS, PhD, MPH
• Director
• Global BioBusiness Initiative
• USC Marshall C-GLOBE
• Email gurinder_at_usc.edu
• October 13, 2005
• Cordia Biotechnology Convention 2005
• London

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• When it comes to the future, there are three
  kinds of people those who let it happen, those
  who make it happen, and those who wonder what
  happened.
• John M. Richardson, Jr.

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Quick Thoughts Some Global Trends and
Opportunities in BioBusiness

• Bio-investment around the world - in bio-related
  infrastructure, RD and training
• Non-traditional sources of innovation - rise of
  China and India Asia-Pacific, now increasingly
  Latin America and Africa/Mid-East
• Growing arbitrage opportunity - cost
  differentials in RD / manufacturing / services
  time-to-market considerations
• Responding to major global problems and equity
  concerns - those having the biggest problems
  (poverty / infectious disease / food shortages /
  environmental / ecological disasters) typically
  have least resources and access to
  knowledge/technology
• Can we build a truly global biotechnology
  industry? - competition or cooperation?opportunit
  y to build coopetitive environment by
  facilitating linkages, technology partnering and
  transfer
• Financing innovation and value creation -
  opportunity to build new business models to
  facilitate development, public health, addressing
  trans-border concerns
• Bottomline time for enlightened self-interest
  to rule?

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About BioBusiness

• Definition
• Commercial activity based on an understanding of
  life sciences and life science processes
• Biomedical (including healthcare,
  pharmaceuticals, medical devices, diagnostics,
  etc)
• Agri-veterinary and Food
• Environmental/Industrial
• Related Areas (bioinformatics/computational
  biology, bioengineering, nanobiotechnology, etc)

• Market
• BioBusiness already constitutes over 25 of
  global GDP and employs some 40 of the worlds
  labor force
• Accounts for over US9.7 trillion (2001)
• Employment figures skewed by gt 50 engaged in
  subsistence level farming and low wage food
  processing in developing countries (including
  China and India)

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BioBusiness Value Creation
Table Estimated Annual Economic Contribution
(per worker), 2001
Source BioEnterprise Asia, 2003 (Primary data
derived from UN Statistical Division, 2002, World
Bank 2002, ILO, 2002) Published in BioBusiness in
Asia, GS Shahi (Pearson Prentice Hall, 2004).  

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The BioBusiness Landscape
Valley Opportunities Commoditized, many
competitors, low barriers to entry, low margins,
old economy principles apply. Low interest for
BioEnterprise unless innovative approach
C
C
S
S
C
Summit Opportunities Technology and knowledge
intensive, few competitors, high barriers to
entry high margins with well-developed business
case, new economy principles apply. High
BioEnterprise interest
V
V

• Our Approach
• Focus on Summit opportunities putting people,
  technologies and resources together to capture
  the value proposition

Cloud Opportunities Technology and knowledge
intensive, few competitors, high barriers to
entry, business case not well developed, future
economy principles apply. KIV interest
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Snapshot Growing Evidence of Non-Traditional
Sources of Innovation?

Source BioEnterprise Asia, original research,
2001-4
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Our Analysis Successful BioBusiness Environments

• Critical Success Factors (given good
  infrastructure, facilities, policies, etc)
• Smart People
• Smart Ideas
• Smart Money (immaterial if public or private
  sector driven Silicon Valley model driven by
  private money European model driven by public
  money)
• Smart Alliances and Partnerships (throughout the
  world)
• Key Differentiator - The quality of money Smart
  Money versus No Brainer Money.
• Note Access to capital alone not sufficient!

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BioPartnering Capturing the Value Proposition
BIOMEDICAL
Encourage public-private partnership
Work for win-win
Researchers
Academic
Industry
Regulatory Bodies
Entrepreneurs
INDUSTRIAL
AGRIBUSINESS
Development Agencies
Finance
Professional Services Legal /IPR, Media,
Recruitment etc
Bet on people
Make smart investments
Source Shahi, BioBusiness in Asia (Pearson
Prentice Hall, 2004)
ENVIRONMENTAL
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BioBusiness Hotspots/Bioclusters

• BioBusiness hotspot or biocluster - a
  concentration of life science and
  biotechnology-related institutions, laboratories,
  and businesses.
• Estimated to be at least 400 self-defined
  bioclusters/hotspots around the world. Possible
  classification(?)
• established
• emerging
• wannabes
• Some internationally recognized
  bioclusters/hotspots include
• San Francisco/the Bay area
• Boston/Cambridge
• Medicon Valley in Sweden/Denmark
• Tsukuba Science Park in Japan.

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Rationale for Setting Up Bioclusters/Hotspots

• Typically, local and state governments/entreprene
  urs seek to establish bioclusters to
• help promote the development of value-added
  technology-related businesses
• fuel local economic development
• Some Key Questions
• What impact is such investment having on growth
  and development?
• What returns are governments/investors getting
  for their investment?

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Our Goals Global BioBusiness Hotspots Project

• The Global BioBusiness Initiative (GBI) and
  Global Bioscience Partnership are working
  together to, among other things
• capture information regarding established and
  emerging bioclusters around the world
• share this information as a mechanism to better
  understand international trends in biobusiness
  development
• raise awareness and interest in best practice
  management and operation of bioclusters and
  BioBusiness hotspots.

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About The Global BioBusiness Initiative

• Inter-disciplinary think-tank dedicated to
• Thought Leadership
• CEO Consultations/Forums
• Regional and Global BioBusiness Leadership Awards
  2005
• Research and Policy Analysis
• Global Financing of BioInnovation Project
• Global BioBusiness Hotspots Project
• Professional Education and Training - Focus on
  training Managers of Science through our
  innovative Marshall Executive Program in
  BioBusiness
• Strategic Management of Innovation and New
  Product Development
• Governance and Management of World-Class Bio
  Enterprises
• Financial and Investment Planning in
  International BioBusiness
• Market and Business Development in BioBusiness
• Best Practice Management and BioEthics
• Project and Program Management and
  Advisory/Consulting Services

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Concluding Remarks - Making Things Happen

Be the change you want to see in the world.
Mohandas K. Gandhi