global themes in biotechnology innovation
Producing Global Hubs and Global Nodes of Biotechnology, international
scan of biotechnology policies, incentives, and capacities, has been an
ongoing effort of Global Bioeconomy Consulting for several years.
Countless hours have been spent exhaustively researching biotechnology
activities around the globe and engaging regional experts and
authorities to vet and expand our coverage.
In this third edition, our largest yet, several themes become apparent.
We have profiled 38 regions in 35 countries around the world. Some of
these regions are in close proximity to other regions with similar
capacities and challenges, while others have peers in close proximity.
This means that while some regions have multiple local opportunities to
form synergistic partnerships, others are challenged to differentiate
themselves from better-positioned neighbors or may have to compensate
for a complete lack of local synergies. As one looks closer, the
differences in the distribution of resources between regions also become
apparent. Some regions have an abundance of wealth but lack a scientific
base. Other regions may have a strong infrastructure and financing but
are impeded by a lack of coordination or policy impediments. The most
successful regions have used coordinated efforts and strong policy
leadership to overcome their natural hurdles and identify and fully
benefit from their intrinsic strengths.
Some of the themes that are apparent in this Global Analysis are:
Size: Biotechnology research is expensive and generally requires
large infrastructure investments and a highly skilled workforce. Smaller
countries often lack these attributes due to their inability to achieve
economies of the scale. Countries such as Iceland, Singapore, Israel,
and Cuba are often challenged by a relatively small research base, few
sources of venture funding, and a shortage of technicians and managers.
Rather than trying to model the actions of nations with larger
resource-bases, the most successful efforts have focused on identifying
appropriately sized targets of opportunity, reaching out to
well-positioned foreign assets, and aggressively supporting
implementation of plans to address these targets.
Distance: Countries such as New Zealand and Australia are very
distant from peers with similar economic capacities or scientific bases.
Emerging European nations are also challenged to compete with
well-established neighbors. The solutions that many of these regions
have implemented are to aggregate local resources to develop economies
of scale and to aggressively pursue logical synergies with foreign
assets.
Density: Similar to the challenges associated with size and
distance are those associated with low density. Russia and Canada are the two largest
countries in the world, yet they have broadly distributed populations.
These nations are addressing this challenge by forming networks of
research institutions spread across vast distances: hub and node
networks within a nation.
Genealogy: Many countries feature long documented genealogical
histories or sub-populations with little genetic mixing over time. Correlating
genetic characteristics with disease prevalence presents significant
opportunities to ultimately develop valuable biotechnology products.
Political change: Political and economic change can profoundly
impact development agendas. At one extreme, Russia is challenged to utilize its
well developed infrastructure and to ensure that its former biological
weapons capacities are safely contained. By contrast, Cuba has seen
great fruits from its biotechnology efforts, largely due to decades of
unwavering political support.
Subsistence: A sharp distinction in biotechnology agendas can be
seen between regions based on their subsistence. China, India, and many
African nations have a pressing need to find effective ways to produce
greater amounts of food from decreasing amounts of arable land, or to
increase yields on marginal soils. For these nations biotechnology is
more than a tool to improve health care or reduce the cost of food
production; the effective implementation of biotechnology in agriculture
is a necessity to prevent mass starvation.
Ecology: Many Pacific nations have access to deep-marine
resources. By contrast, Israel and African nations have large deserts. These countries
are utilizing their natural ecological resources and knowledge of these
habitats to develop unique biotechnology products such as novel
medicinal products and drought-resistant crops.
Policies: There is a great diversity of national policies across
the spectrum of predominantly planned through increasingly market-driven
economies. Cuba, for example, has no biotechnology companies, relegating
all commercialization to government-run entities. India and China define
their biotechnology policies in a series of cascading multi-year plans.
Nations such as Singapore, France, and Germany are aggressively
deploying economic incentives to help encourage private industry to lead
biotechnology development.
Drawing on our experiences in helping develop biotechnology and other
innovation-based economies in the United States and elsewhere, common
themes in managing economic development have become apparent:
Appropriate expectations: Many regions around the world look to the
success of the United States in developing a vibrant biotechnology
industry, and attempt to mimic the present-day characteristics of the
leading regions in the United States. This ultimately leads to
frustration due to a lack of similar resources or supportive policies.
In reality, these regions are only seeing part of the picture . the bulk
of U.S. biotechnology dominance is centered in a few locations in
California and the northeast. These locations have come to dominate the
global biotechnology industry through a combination of significant
external factors, strong internal leadership, decades of hard work, and
a measure of luck. Attempting to rush the growth process or apply
excessive market distortions is sure to lead to failure.
Old regional development models no longer apply: The model of
all-inclusive clusters is outdated. Those regions that have been able to
succeed under this model are being challenged as clusters are
disaggregating as discrete research and development activities are
linked through a global network of increasingly specialized regions.
Regional development needs to face this reality, as attempts to build
local economies based on outdated models will only lead to wasted
efforts and failure.
The challenges are shared: Many of the common challenges in developing
biotechnology regions stem from a lack of capital, small research base,
or lack of seasoned managers and skilled workers. While the unique
combination of these elements and the causes of these elements may be
different from one region to another, there are themes in the solutions
to these problems. Furthermore, these same problems are shared by
regions within the United States struggling to develop biotechnology
infrastructures and those regions outside of the United States.
The challenges faced by diverse regions are shared, yet solutions need
to be crafted based on individual needs. Focusing on best principles,
rather than best-practices, is the key to creating a robust
implementation plan and ultimately realizing the profound economic,
social, and political benefits that stem from technology-based economic
development.