Bioasia2010

Gaining strategic leadership in Technology (c) Cornell - Sathguru

BIO ASIA 2010

Gaining strategic leadership in technology – The private Seed Sector approach

(Vijay) VijayaraghavanCornell – Sathguru

[email protected]@cornell.edu


Discussion focus

• Understanding strategic drivers for technology leadership.

• Understanding seed industry priority setting process for research and technology acquisition.

• The IP and technology transfer policy and process.

• The approach to consolidation.


Vision and Strategy

Organization vision drives technology leadership

• Strategy is made up of a set of elements that are perceived to accomplish the VISION.

• Seed companies in the world generally have similar strategy, with similar capacity with similar people, with similar ideas, with similar market presence, and operating in similar environment.


Seed company strategic landscape

• However, the winning companies want to aim at being only one of what they do.

• If not, they aim at being the first one• Technology leadership in many ways help to reach that first

position.

Technology Management function is a strategic component of building and retaining competitive technology advantage.



Strategic planning for technology leadership.

• Understanding Trends.• Technology development / acquisition

strategies.• Decision process for trait selection and

technology adoption.• IP and technology management policies• Corporate consolidation.

Understanding trends

• Economic trends

• Demographic trends

• Understanding related trends


The Changing Economic Profile of Nations.

GDP Growth/year 2006 2007 2008 2009(E)

World 5.1 5.0 4.1 1.8

Advanced Economies

3.0 2.7 1.7 (-)0.9

Emerging Economies

7.9 8.0 6.9 5.0

© Vijayaraghavan-Sathguru Cornell

8

Impact on technology generation and technology flow

• Technology generation, hitherto has been restricted to few countries – (Part 1 countries)

• A set of new economies emerge as aspirants of new technology generators. Initially, they will be recipients from Part 1. (Mezzanine level)

• A set of low income countries do not know where to begin and how to approach. Development investors begin to create new windows for them (Part 2 countries).

© Vijayaraghavan-Sathguru Cornell

INFORMED DECISIONS

CONVERGING COMMUNITIES

© Vijayaraghavan-Sathguru Cornell 10

Speed of innovation poses a major challenge for Corporate differentiation.

• Lab to Market Timeline factor

• Speed of invention increases “Routine” factor, threatening our competitive edge.


Shifting geographical markets begins to take research in Part 1 countries, proximate to new markets.

• Transnational research centers.• Off-shoring and out-sourcing research.• Joint research initiatives with in-country partners• Opening access to technologies to new markets.


Domestic enterprises begin to wake up – search for ways to accelerate innovations.

Emerging enterprises do not have access to fundamental inventions – They look at several access options, with the goal of minimizing the risk of being sued.


Technology access issues

Every gene of value is protected by patent - Lack of access to basic biological materials – major hurdle…

Accessing germplasm is governed by even more restrictive factors.

Are there similarities in other sectors? How do they handle this?

“INTEL INSIDE” is evolving in biological sector?

http://www.intel.com/business/ads/itanium2.htm?iid=HPAGE+low_camp_it2spotimg&

Learning from other sectors..

• Contracting and sub-licensing for strategic advantages..

• Basic inventors and product developers• Consortium partnerships for global research and

commercialization• Embedded products – sub-license strategy..• Operating systems and application software bundling

– similarities for molecular research and breeding..

Strong interest Developing / accessing platform technologies.

• Technologies that can address CROSS FUNCTIONAL AND CROSS PRODUCT APPLICATIONS.

• Technologies that can address PRODUCT needs across the GLOBAL regions.

• Technologies that can be integrated with other technologies/traits.YOU CAN’T ACCESS BROADER MARKETS WITHOUT PLATFORM TECHNOLOGIES


Leapfrogging options.

• Some enterprises have limitation of not – so – long engagement in upstream research.

• The solution lies in bridging the low “INTERNAL R&D” with “EXTERNAL R&D”.

• Academic partnerships gain critical mass in research ability in the soonest possible time


Open source vs Protected assets

• Open source interest is catching up.

• Several discoveries will be placed to be useful to wide audience in science – Principle of incrementation. (freedom Vs Control balance)

• Speed to market will be the criteria rather than the protection factor (DO NOT LOCK THE IP – GET IT OUT THERE TO REACH MARKETS)

• “Use it” or “Lose it”.© Vijayaraghavan-Sathguru Cornell 19

PUBLIC - CORPORATE MATERIAL ACCESS

BIO BANKS EMERGING!!!!

Cell linesBiomarkers – plasmidsSequence annotations


IP implications

• Smart management of IP assets

• You can’t patent that – Can you?

(more and more demand for fundamental science not to be protected)…


Technology reach to markets – We can’t lose time.

Do you know you have not missed the markets?© Vijayaraghavan-Sathguru Cornell 22

Large and emerging enterprises begin to collaborate more aggressively.

Valuation factors shift research results seamlessly from smaller to larger enterprises (Vice-versa), accelerating smarter bundling of technologies and smarter commercialization.


Emerging relationships will drive consolidation of research investments and research efforts.

Public research investment

Public research

Market

Private sector TT

Traditional relationship model© Vijayaraghavan-Sathguru Cornell 24

The new relationship model – converging investment and research efforts.

Public&private investors

Public research

Market

Corporate research



Strategic planning for target products/target traits.


How do we determine priorities for target products / target traits?

• Territorial market trends – changing consumer preferences. (demographic, economic growth factors, market access opportunities)

• Regulatory framework in the region.• Labor availability and wage cost factors.• Process industry need for traits.• Natural resource constraints (depleting natural

resource).• Learning from other sector developments (energy sector,

textiles et al)


Big Bazaar, India


5. Consumer concern for health, safety and environment.

• Economic growth triggers concerns for health, safety and environment protection.

• They impact the standards for food, composition of food and the categories of food.

• This is one of the key drivers for technology change.


Having determined priorities, how do we go about the development process?

• A successful event in biotech products and a market ready hybrid development are long drawn processes.

• The tactics lie in securing and possessing worldwide rights to commercially relevant products with exceptional traits.

Adapting innovation for market ready applications


Choose between in-house development vs. licensing

• Identification of trait gene. • In-house development of trait gene Vs. In-licensing of

the trait gene. • Making choice of other biological materials – Promoter,

selectable marker etc..• In-licensing of other biological materials.• Selection of the right parent material for trait

development and selection of right germplasm for trait integration.


Choosing the licensing source.

• Industry source.• Academia.• Non-Profit sources

- Cambia & BiOS, BIOFORGE. - CIRAD (Agriculture Research for developing nations)-Géné-PI

- JOHN INNES CENTER (UK). -

- PIPRA(Public Intellectual Property Resource for Agriculture)

- NRC, Canada and few others.


In-licensing from Private sector and the Academic research organizations.

• Skillful choice can be made for in-licensing from private sector, large seed companies, and contract research organizations for genes of interest & research tools in complimentary products.

• Technology transfer organizations in the public research system.

• Technology Transfer organizations in the private system.

• Product co-development with public good co-investments.


Building Intellectual assets for growth and consolidation

• Technology development, sourcing and pooling for accelerated commercialization.

• Contract research opportunity for multiple product development – Outsourcing opportunities.

• Infrastructure outsourcing – Infrastructure sharing.• Development pipeline with differential maturities of

“time to market”.


Technology access strategies.

• Sub-licensing as quick access to new traits – learning curve opportunity for emerging enterprises.

• Contract research for early stage enterprises for new trait development.

• Limited territorial licensing for regional leadership.• Master licensing for global leadership.• Patent/PVP & Trade marks rights for global

leadership.• Off-patent traits – Block buster off-patent 2013-2015

Acquisition of technology power through inorganic growth.



Inorganic growth

• Acquisition of small enterprises by Industry Majors.

• Leveraged buy-out of larger enterprises by smaller enterprises.

• Merger of peers for ensuring economy of scale and geographical synergy.


Conclusion.

• Consolidation in seed sector will be through strategic linkages for research, trait development and market access.

• Emerging market opportunities will create new alliances, breaking traditional models of strategic linkages.

• Center of growth drivers will move to emerging markets in Asia and other regions.

Conclusion

• Enterprises with no focus on research will struggle to retain market share as markets become highly value conscious.

• Your ability to generate IP, access or own and manage IP will determine the speed of innovation

• Corporate research and technology management is an essential component of corporate planning, driving growth, innovation and sustainability.


Bioasia2010

Technology

Transcript of Bioasia2010