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"Benefits of Biotechnology Clusters in APAC for start-
ups, Domestic Manufacturers and MNCs”
What to expect in next ten years?
Dr Siddharth Dutta
Industry Manager
27th August 2014
Benefits for Start Ups, Domestic Companies and MNCs in Biotechnology Clusters in APAC
“If the cluster is set up correctly it can benefit all of these groups(Start ups, Domestic and MNCs). It must however be set up to primarily support and encourage SME's or the cluster will not survive."
AusBiotech, Australia, 2014 *
* Results of Primary Research conducted by Frost and Sullivan
“Again if the cluster is set up with primary aims very clear and funded well then the success rate in Australia has been very good. Especially encouraging the growth of SME’s."
AusBiotech, Australia, 2014 *
“It does not matter whether a Biotechnology cluster is Private or Government; what matters is how well it is designed."
IKP Hyderabad, India 2014*
“As a Start Up Company in Malaysia I would like the Scientific Community to come and take broader view of the R&D status."
Bioxcell Company, Malaysia, 2014*
“The best thing is to go to the clusters and see for yourself. Each of them probably has something unique to offer and you can learn some valuable lessons."
AusBiotech, Australia, 2014 *
Need for a Biotechnology Cluster
Support Services Companies – vendors, equipment suppliers,
law firms, etc
Life Science Parks/Incubators to nurture
Start Ups, SMEs
BiotechnologyCLUSTER
Common Infrastructure, hospitals, animal house,
etc
Monitory incentives,Tax breaks, Grant, Bank loan,
Seed Fund, VC
Biotechnology and Pharmaceutical
anchor companies,Innovative SMEs,
Startups-
Lifesciences R&D Institutions with strong industry
Linkages
Main focus is innovation and productivity
Platform for sharing knowledge about best practices
Reduce costs by jointly sourcing services and suppliers
Common Platform becomes a source of formal knowledge transfer
Encourage formation of collaboration between academia and industry
Benefits of Creating Biotechnology Cluster
Poland enters with 4 Clusters and 70 company in 2013
San Francisco Bay Area
Boston
United Kingdom
Germany
Needs of the Start Ups, Domestic and MNC Companies in Biotechnology Cluster
Funding – Government or Private (VC)
Patent Protection
Infrastructure
Mentoring
Commercialization
Protection from MNC and Patent Protection
Funding
Commercialization
Incentives for Being Local Manufacturers
Socio-economic Stability
Skilled Manpower, Infrastructure support and conducive Business environment
Patent Protection
Exit Policies from Clusters
What are the focus of a company while Entering Biotechnology Cluster?
5
MNCs
Domestic Company
Start up Company
Source: Frost & Sullivan.
Biotechnology Industry Overview - APAC
Ranking R&D InvestmentNumber of Companies
Industrial Jobs Patents
China US$ 160 Billion 7,500 250,000 9,302
Japan US$ 152 Billion 538 NA 39,797
India US$ 40 Billion 500 50,000 4,793
South Korea (US$ 65.3B in R&D spent in 2012) Taiwan (US$ 27.5 B in R&D spent in 2012), Australia (US$ 20.7B R&D spent in 2010) Singapore (US$ 6.9B R&D spent in 2012)and Malaysia are other major Biotechnology Clusters.
China is expected to be the largest bio-pharmaceutical market in 2015 (expected to surpass Japan) India is closely following with market size US$ 4.3 Billion
Malaysia’s Biotechnology Clusters are flourishing under the BioNexus incentives program and one of the potential countries for Biotechnology Investments
Lack of compiled data for the clusters and across the same areas and similar year make quantitative comparison difficult
Source: http://www.chinabiotoday.com/articles/20140403_1; Frost and Sullivan; * Primary Research
Key Success Factors for Biotech Clusters
• Thriving spin-out and start up companies.
• Presence of companies to support research, clinical trials and
manufacturing
• More mature ‘role model’ companies.
• Presence of suppliers for raw materials
• Thriving spin-out and start up companies.
• Presence of companies to support research, clinical trials and
manufacturing
• More mature ‘role model’ companies.
• Presence of suppliers for raw materials
Science BaseScience Base
Company BaseCompany Base
Description
• Leading research organizations: University departments,
hospitals/medical schools and charities
• Critical mass of researchers, World leading scientists, Both
industry driven and independent research
• Leading research organizations: University departments,
hospitals/medical schools and charities
• Critical mass of researchers, World leading scientists, Both
industry driven and independent research
Availability of Finance
Availability of Finance
• Venture capitalists, Business angels, Developed public
markets
• Availability of cash at all stages of business like venture
formation, pre-seed, seed, second round, mezzanine and
opportunities for IPO
• Venture capitalists, Business angels, Developed public
markets
• Availability of cash at all stages of business like venture
formation, pre-seed, seed, second round, mezzanine and
opportunities for IPO
1
2
3
Source: Frost & Sullivan analysis
ChinaIndia
ChinaIndia
JapanSingaporeS Korea
JapanSingaporeS Korea
ChinaJapanIndia
S Korea
ChinaJapanIndia
S Korea
Example clusters
Company Base, Science Base and Funding Availability are key capabilities for biomedical clusters
Key Success Factors for Biotech Clusters
• Skilled workforce, Training courses at all levels• Skilled workforce, Training courses at all levelsSkilled Workforce
Skilled Workforce
Description
4
• Commercial awareness and entrepreneurship in
Universities and research institutes, presence of anchor
companies
• Role models and recognition of entrepreneurs, Presence
of Second generation entrepreneurs
• Commercial awareness and entrepreneurship in
Universities and research institutes, presence of anchor
companies
• Role models and recognition of entrepreneurs, Presence
of Second generation entrepreneurs
EntrepreneurialCulture
EntrepreneurialCulture5
6 • Shared aspiration to be a cluster. Regional trade
associations.
• Efficient TTOs
• Shared aspiration to be a cluster. Regional trade
associations.
• Efficient TTOs
Effective collaboration
Effective collaboration
Source: Frost & Sullivan analysis
ChinaSingapore
Japan
ChinaSingapore
Japan
AllAll
AllAll
Example clusters
Skilled workforce, entrepreneurial culture and effective networking develop as clusters mature and are important for sustainability
Three Focus Areas For Future
2 Star Power in Biotech Clusters Will Increase Credibility
3 Survive or Thrive ?
1 Regenerative Medicines are expected to emerge as the focus of biotechnology industry..
Source: Frost & Sullivan
Six Magic Words for Success
10
IgnitePassion to CreatePassion to ExcelPassion to Implement IdeasPassion to Commercialize
IncubateEarly – Mid and Late Stage Innovation
InnovateNew IdeasNew Technology
IlluminateYoung Minds in UniversitiesR&D Institutes
InfluenceDomestic StakeholdersSMEIndustryWorld Community
IntrospectPolicies which have/have not been well receivedRoad Maps which have or will create Impact
Source: Frost & Sullivan.
Carrie LowCorporate CommunicationsAPAC
(+60) 3 6204 5910
Dr Siddharth DuttaIndustry ManagerHealthcare & Life Sciences
(+60) 3 6204 5842
Contact Us
Jennifer LazarGlobal Program Manager – Life Sciences
+1 (650) 475 4560
Rhenu BhullerVice President, Healthcare, APAC
(+65) 6890 0986
