Can Bioscience Underpin Economic Strategies

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Can Bioscience Underpin Economic Strategies?

• Iain Gillespie,
• Head of Division.

BIOTECHNOLOGY DIVISION
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OECD and Biotechnology

• Biotechnology as a microeconomic driver for
  growth
• Harmonisation of regulatory regimes and provision
  of positive and stable international business
  environment
• Biotechnology as a driver for market transition

BIOTECHNOLOGY DIVISION
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Which Economic Strategies?

• Health
• Sustainability (decoupling growth from
  environmental degradation eco-efficiency)
• Nutrition/ Food Security
• Globalisation and trade.
• Growth

BIOTECHNOLOGY DIVISION
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Health

• Potential of molecular markers to add value to
  medicines?
• New disease and drug targets?
• Interoperability or Tower of Babel?
• New business innovation models?

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Model-adjusted Mean Change from Baseline in
ADAS-cog by treatment week
ITT population
PGx ITT population by APOE4 status
Excluding subjects 364, 737 and 1027
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Linear Model

• The current approach..

Discovery
Development
Delivery
Diffusion
BIOTECHNOLOGY DIVISION
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Making Demand and Supply Work Together
Enabling environment?
Match innovation and health needs

• Research
• Policy
• Guidelines-eg
• human subjects,
• consent, privacy.
• Research
• Ethics Boards
• RESEARCH

• Healthcare
• Policy
• Accessible
• Affordable
• Cost-effective

IDENTIFICATION of NEED
DIFFUSION

• Industry
• Policy
• Feasibility
• Trials
• Formulation
• IPR

• Regulatory/
• Legislative
• Policy
• Patient safety
• Standards
• Medical guidelines

DELIVERY
DEVELOPMENT
COMMERCIALISATION
Decisions
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Industrial

• Decouple growth from pollution?
• Platform technologies/ intermediates?
• Leverage infrastructure?
• Will subsidies be necessary?

BIOTECHNOLOGY DIVISION
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BIOTECHNOLOGY DIVISION
Conventional technology
Eco-efficiency renewable feedstock
Pollution (e.g., CO2 , toxic chemicals)
Sustainability via the biobased economy
Economic Growth (e.g., employment, GDP)
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Renewable T-Shirts!
BIOTECHNOLOGY DIVISION
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Cargill-Dow (Nebraska)
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Market Potential

• Recognise opportunities to realise latent value
  natural processes.
• Significant economic potential in manufacturing
  and processing industry (sector provides 17
  direct economic value in OECD countries - big
  pharma another 2-3).
• But must avoid over-hype and exact estimates
  missing - need to be generated.

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Measuring the Biobased Economy

• Country strategies visions, roadmaps, foresight.
  Goal setting
• Measuring activity eg investment, jobs, numbers
  of firms, churning, patents. Definitions,
  methodology and comparability.
• Measuring impact productivity, sustainability,
  demand and acceptability. Small impacts so far,
  pervasive sector.
• Measuring cause and effect Activity or Policy?
  Do we need to know.

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Inputs Outputs
BIOTECHNOLOGY DIVISION
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Biotechnology RDTotal expenditure on
biotechnology RD by biotechnology-active firms,
Million PPP, 2003
BIOTECHNOLOGY DIVISION
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Biotechnology firms Number of biotechnology
firms, 2003
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Biotechnology employmentBiotechnology RD
employees, headcounts 2003
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Biotechnology Patents
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Sales of Biotechnology firms, Million PPP. 2003
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Total venture capital investments in
biotechnology, 2001 to 2003 combined
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Biotechnology venture capitalBiotechnology
venture capital investments as a percentage of
GDP, 2003
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Number of biotechnology alliances, 1990 to 2003
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Where are we?

• Great on visioning. Real signs of success in
  raising interest/ investment.
• Good measures of input at national/ regional
  level. Still limited at sector/ firm level.
• Progress on measuring activity, but needs to
  distinguish sectors and look at firm level.
• Output measures lagging. Market sluggish and
  probably inefficient, basically no idea at
  national/ regional level. Firm level based on
  market response.

BIOTECHNOLOGY DIVISION
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Whats Missing? Would Resources Better be Put
Elsewhere?

• Indicators (then measures) for productivity and
  other economic activity.
• Indicators (then measures) for policy goals
  (health, sustainability).
• Measures of value and value added (intangible
  assets).
• Endogenous growth models?

BIOTECHNOLOGY DIVISION
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Realising a Bioeconomy an economy which
captures the latent value in biological processes
and renewable bioresources to produce improved
health and sustainable growth and development.

• Building visions for the development of the
  bioeconomy
• Identifying technical, financial, human capital,
  regulatory bottlenecks
• Providing as much as possible a quantifiable
  benefit analysis of the main segments
• Providing a road map of necessary policy choices
  ahead

IBIOTECHNOLOGY DIVISION