Country case: MalaysiaIssues on Research, Development and

Commercialization

Country case: MalaysiaIssues on Research, Development and

Commercialization

Prof Asma Ismail,Director,

Institute for Research in Molecular Medicine (INFORMM), Health Campus,USM, 16150 Kubang Kerian, Kelantan and

Suite 110, Eureka Complex, USMMinden, Penang

Regional Higher Education Conference3-5 Dec, 2007

Incr

easi

ng c

om

peti

tion

Agricultural era

650 1750 1950 2000

Modified from Richard W Oliver, The shape of things to come

Technological era

Primitive era

Biotechnology era

IT era

HotSpots

The Global agenda The Global agenda

© DAR2003

21st century(Future)

Kno

wle

dge

era

Kno

wle

dge

era

The needto move to K-economy

Stages of economy for Malaysia Stages of economy for Malaysia

• “As nation develop, they progress through a number of stages in terms of their characteristic competitive advantages and modes

of competing”

Resouce

-driven

economy

Investment

-driven

economy

Innovation

-driven

economy

© DAR 2002- Porter M, Enhancing the microeconomic foundations of prosperity

From resource-driven to Innovation-driven

Rubber, palm oil etc Multinationals at free trade zones Knowledge-based

New R&D challengesNew R&D challenges

• Challenge for R&D in the country would be how to move towards the requirements needed to succeed in the Innovation-led economy:

• Technology-driven (10-15 years) Dependent on our researchers

• Own original scientific discoveries that will enhance the competitiveness and provides the leading edge for the country.

• Set new trends in technology and create our own technology platforms• Ability to combine scientific discoveries and technology platforms to create

new innovations that can create an impact to society and the global market; undergo translational research

• Market-driven (3-5 years) Dependent on our business community/government Dependent on funding Buy existing technology and innovate Innovation-led economy

•Technology driven•Market driven

Challenges in Innovation-led economy that affects R&D

Challenges in Innovation-led economy that affects R&D

Political will• Create policies that support R&D, innovation and

entrepreneurship Human capital

• Sufficient number of innovative, creative and relevant human capital (Knowledge-workers)

• Originality and IP Must show originality and creativity in offering solutions to

problems with the generation of intellectual properties/ patents

• Change in the R&D approach Harness the human capital to create an environment of

innovative culture Work with the end in mind

Funding• Funding to drive R-D-C-E• Funding to buy existing technology (market-driven)

R&D being the National AgendaR&D being the National Agenda

• Malaysia has the political will to ensure that R&D is the national agenda to drive the K-economy of the country (O.5% of GDP (6%).

• The government has provided a lot of national grants (at least RM 1.7 billion from 2006-2010) to promote R&D&C

• But is the amount ENOUGH to promote commercialization of research products

‘Being a global player is unavoidable for a country that wants to develop’ - Abdullah

POLITICAL WILL

Moving towards successful K-economy:R&D Challenge

Phase 1: Consolidating Research

Phase 2: Consolidating Development

Design, engineering and technology integration

Phase 3: Consolidating Commercialization Patent, Marketing, Entrepreneurship and licensing

R

D

C

Phase 4: Consolidating Knowledge-based enterprise

(Research Park)

E

Research discoveries, acquisition of technologies

•Spin off companies/ JV companies

Smooth and continuous flow of R-D-C-E

PHASE 1Making scientific discoveries

PHASE 2 Develop prototype

PHASE 3 Commercialize

PHASE 4 K-enterprise

Applied and fundamental grants

Development grants, pre-bridging grants

Techno fund

Venture Capitalists, Innofund

Pitfalls and challenges:

Status of Research & Development in Malaysia

Phase 1: Consolidating Research

Phase 2: Consolidating Development

Phase 3: Consolidating Commercialization/Innovation/Technology licencing

Commercial arm of the University•Entrepreneurship •Spin-off companies•JV Companies•Licensing

R

D

C

E ???????

WHY are we not there yet?

Need to improve the number of publicationsNeed to improve impact factorNeed to improve citations

WHY are we not there yet?Human capital

WHY are we not there yet?Human capital

Country R&D personnel/10,000 pop

Thailand 9.1

Malaysia 21

USA 89.6

Singapore 83.5

UK 61.4

Japan 112.8

National Survey of Research and Development 2004, MASTIC

Not sufficient K -workers!Need 60/10,000 pop

Expectations of Modern Universities in the Knowledge-era

Expectations of Modern Universities in the Knowledge-era

• Role of Universities include the need to train the human capital to be relevant and support the innovative culture

• Expectations of Modern Universities Generate knowledge Disseminate knowledge Facilitate translation of knowledge into tangible and intangible

products

• Universities are expected to undergo Research-Development-Commercialization of R&D and setting up of Knowledge-based enterprises in the Research Park

• In Malaysia, we now have Research Universities that should lead the way to generate IP and wealth for the country and enhance the quality of life of the people.

If patents indicate originality/creativity

Indigenous Technology

Country % GDP (Amount USD)

Patents per 100,000 pop

Efficiency

Mil (USD)/patent

Malaysia 0.5 (440 mil) 1.7 259

Thailand 0.2 (306 mil) 2.6 118

S. Korea 2.9 (12 bil) 456 26

Japan 2.9 (142 bil) 820 175

Fadzilah Ahmad Din. National S&T Indicators in Malaysia: Where are we now?. MASTIC, MOSTE, National Symposium on S&T, July 28-30,2003.

We lacked originality in performing R&D

We lacked efficiency in producing patents

Patents

•Are people aware about IPR? •We need to encourage IPR awareness and the patent culture. •We should not view patents as a number game.•When we patent we should use it to design and develop new innovations. Patents must be used to generate income. It is used to generate K-based industries for the country.

The iceberg phenomenon

Commercialization of research productsCommercialization of research products

• Commercialization of R&D products is not a simple process

• It is a complex exercise that must address several issues before we can take the technology/product/process to the market

Idea (scientific discovery) +Innovative Technology

Lab model

Prototype

Product

Evaluation(multi-centres)

Technology Licencing

DISCOVERYEvaluate (lab-level)

•Undergo translational Research•Research theses•Patents and IPRs•Commercial viability•Business plan•Win awards

Packaging

DEVELOPMENT AND INNOVATION

Commercialization of Knowledge

UNIVERSITY’s ROLE

COMPANY’sROLEIssues: Since industrynot ready, univhas to do both roles

•Business plan•Win awards

Courtesy of Sam Teng Wah, USAINS

2004 UK Patent-Investment ratios for 11 sectorshttp://www.innovation.gov.uk/rd_scoreboard/patents_ratio.asp

Ave 2.8 million pounds/patent

RM 20 million/patent

Investment of RM 1760 million, Malaysia should have 88 patents

But only 25 patents in biotech

Benchmark with UK

No of disclosures differFor different areas of focus

Most expensive!

Reality check: Patent vs licencingReality check: Patent vs licencing

• In USA the ratio of commercialization to patent is 1:3.5

• Since we are spending RM1,760 we should hypothetically produced 88 patents ( 25 technology licencing for the country or 7 biotech licencing for the country)

• Hence the lack of technology licencing and the setting up of K-based industries due to insufficient funding.

Reality check: Financial investmentReality check: Financial investment

• Business community: Must believe that knowledge can be turned

into a business Must have strong network of angel investors Must perform research as the basic building

block for any K-based industry

Reality check: Financial investmentReality check: Financial investment

• Currently Malaysian business communities lack the knack for K-based industries. Majority are still into property and manufacturing.

• They will only come in at the latter part of research when you have developed a product or devise or services or a process to

undergo technology licensing or direct selling • Venture Capitalists as investors are also not

adventurous (does not take risks).

Reality check: Need to change paradigm to do research

Reality check: Need to change paradigm to do research

• We must meet the industry half way.• We must understand that in the new economy, a

discovery has no value until it can benefit the public. Publishing and winning gold medals for the products created are not enough. It has to be commercialised.

• Compromise: Work with the end in mind. • Cater for the needs of the client. • R&D product would be more commercially viable

• Experimental design strategy must be from Z to A rather than A to Z.

Paradigm shift: The New Research approachParadigm shift: The New Research approach

Generate new industries

Consolidate existing

industries

Create newScientific

discoveries

DevelopAdvances in Technology

INNOVATIONSSTRATEGICFUNDAMENTALRESEARCH +

• Strike a balance between fundamental and applied in order to undergo Translational Research (Move R to D to C)• Work in multi-disciplinary clusters

•Generate Patents•Publications

Produce relevant scientists and postgraduates tobe drivers of K-economy

•Incentives for scientists•Incentives for industries

Enhance quality of life

To ensure products remain technologically competitive

Z A

Work with end in mindCheck market/client requirements

Z

The Innovation system at USM The Innovation system at USM

• Research• Development• Commercialisation• Enterprises (knowledge-based)

• Research Park (in-campus ‘industrial

alliances’)

R

D

C

E

(P)

© DAR2003

Innovation -driven

Global vs Local

INFORMM’s Technology

development and design strategies at

MITD for diagnostics

•Rapid

•Specific

•Sensitive

•Easy to perform

•Cost effective

•Can be transported without cold chain

Criteria for Design and development

Scientific discovery

Technology platform

•Dot EIA•Dipstick•Sensor technology•Thermostabilised PCR•PCR DNA chip

Working from Z to A (end in mind): Market

foresight requirements for rapid diagnostics

Patent separately

Rapid protein or DNA - based diagnostics for the following diseases

• Typhoid• Cholera• Campylobacteriosis• Filariasis• Tuberculosis• Dysentery• Paratyphoid• Nosocomial infections• Pharmacogenomics (Drug

response to TB)

Contribution to K-economy: Molecular Diagnostics

Focus on diseases relevant to S.E Asia

ORIGINAL DISCOVERIES

Commercialization Track record: Antibody-based Biotech kits

Bancroftian filariasis -2005

Pan filariasis -2006

1994

2002

1996

2005

6 kits commercialised

Planned strategic approach for creation of technology platforms ( Road map for typhoid diagnosis )

Planned strategic approach for creation of technology platforms ( Road map for typhoid diagnosis )

Scientific Discovery 50kDa1986-1991

Dot EIA

(Require cold chain)

Immuno-chromatography

Thermostabilised PCR

Universal PCR Chip

(No cold chain)

TYPHIrapid™

15 min

(Nanotechnology)

20072005

200419971994

EZ TYPHI carrier DNA

1998

TYPHOID DIAGNOSIS

Global Distribution of Typhoid Fever

Commercialization of TYPHIDOT – a rapid diagnostic test for typhoid

Commercialization of TYPHIDOT – a rapid diagnostic test for typhoid

PakistanIndiaPhilippinesSouth AfricaGuamPapua New GuineaThailand VietnamEgyptTurkeyUnited Arab RepublicIndonesiaBangladeshChinaSudanCameroonNigeriaUSA

PakistanIndiaPhilippinesSouth AfricaGuamPapua New GuineaThailand VietnamEgyptTurkeyUnited Arab RepublicIndonesiaBangladeshChinaSudanCameroonNigeriaUSA

R&D is necessary to

make the product

technologically

competitive

Outputs

•33 Publications

•7 Patents

•Creation of 500 jobs

•Supported local industries

•Generated income

•Won >50 awards

Amplication of target

genes

Gel electrophoresis analysis

3 min3 min

80 min80 min

Thermostabilised PCR

100bp DNA ladder marker

PCR product 415bp

Duration: Approx 2.5 to 3 hours

No cold storageOnly two pipetting stepsDoes not need PCR skilled

personnelsCheap (USD 10 to now USD 1)

40 min40 min

Add 2 ul lysate + 18 ul waterSample

DNA + water

(2 steps)

USM inventionM. Ravichandran et al

Boil sample to obtain DNA

Create new technology platforms for molecular diagnostics

Require collaboration of strengths

Thermostabilised PCR kits

EZCholera AmpITEX 2003 Silver Medal

EZDNA AmpExpo S&T 2003 Silver medal Commercialized by MBDr M’sian Patent: PI 20051471

2003 2004 2005 2006 2007

EZEBV AmpITEX 2004 Gold medalWIPO Gold Medal KASS Award 2004Geneva 2005 Gold Medal

EZAmp Octaplex Cholera ITEX 2004 Gold medalWIPO Gold MedalGeneva 2005 Gold Medal

EZTB Amp ITEX 2004 Silver medal

Commercialized by MBDr

EZVRE AmpITEX 2005 Gold medalGeneva 2006 Gold Medal

EZTyphi Carrier DNAITEX 2005 Gold medal

ITEX 2005 Best Invention in BiotechnologyGeneva 2006 Silver Medal

EZDysentry DNAITEX 2005 Silver Medal Cholera Genosensor

EZCampy DNAExpo S&T 2005 Silver MedalGeneva 2006 Silver Medal

SOLD

SOLD

A total solution

Courtesy: M Ravichandran, USM

Development of technologically competitive product/device/process/expertise is no longer a luxury. It is a necessityIt would require collaboration with other strengths on a global scale to stay ahead of the gameMalaysian R&D must be relevant, accessible, bring in respect and profits and not an economic drain

Conclusion

Universal PCR chip

ICT quad scan

Genosensor

AcknowledgementsAcknowledgements

• Committee for National Strategies for Biotechnolgy

• Committee for Human capital development – ASM

• Committee for Strategic plans for KPT on R-D-C Issues

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