Engaging Adaptable Hybrid Ecosystems to commercialize nascent technologies-A perspective on Nanobiotechnologycommercialization

Bhuvaneashwar Subramanian, Program Manager,Healthcare and Life Sciences Vertical Intelligence PracticeGlobal Analytics, Corporate Strategy and AlliancesHewlett Packard CompanyEmail : bhuvaneashwar.subramanian@hp.com

Key Themes Covered

Innovation Ecosystems and Their Limitations in Theory

Introduction to the AHE theory The Nanobiotechnology Example Assessment of ecosystems across US,

Australia and Malaysia Future Directions

INNOVATION ECOSYSTEMS AND THEIR LIMITATIONS

Innovation ecosystems : An organized system of actors and agencies aimed at facilitating innovation through dynamic exchange of knowledge

Governments

AcademiaIndustryIndividual

Organizations

Nations

People

Industries

Current models of innovation focus myopically on improving the competitive advantage of nations

MODEL 1: NATIONAL INNOVATION SYSTEMS(NIS)

Policy

• Driven by governments

Structure

• Core Environments

• Supporting Entities

• Knowledge Flows

Objective

• Improving economic performance through regional innovation activity

Current models of innovation focus myopically on improving the competitive advantage of nations

MODEL 2: TRIPLE HELIX MODEL(THM)

Policy

• Primarily driven by universities through tech licensing and spinoffs

Structure

• University driven

• Collaboration between three institutions

• Alternative positioning approaches

Objective

• Create a knowledge based society to improve regional economic performance

Existing innovation models are challenged on three fronts-

Localization of Resources

NIS focuses on localization of resourcesTHM does not discuss how interchangeability of resources could occur

Lack of Pervasiveness

Both theories do not sufficiently address the pervasiveness of the ecosystems outside national boundaries

Adaptability to Changing Innovation Dynamics

The theories do not suitably provide for trends such as reverse innovation, open innovation and crowdsourcing

INTRODUCTION TO THE AHE THEORY

ADAPTABLE HYBRID ECOSYSTEMS

The Adaptable Hybrid Ecosystem Theory Builds on These Challenges to fundamentally call out -

An inclusive innovation environment that is sustained by dynamic and evolutionary interactions between temporal global alliances of industry, academia and universities, guided by the facilitatory powers of governments through bilateral agreements

The theory implies 4 fundamental paradigm shifts that encompass the wave of globalization

View Global Consumers

as Need Based

Clusters

Viewing Regions as Centers of

Competenceand Markets

Coexistence of multiple innovation

models

1 2 3

Governments as Facilitators

4

A BRIEF VIEW OF NANOBIOTECHNOLOGY & APPLICATION OF ELEMENTS OF THE AHE THEORY TO THIS FIELD

Nanobiotechnology : A convergence of nanotechnology and biotechnology

Atomic Force Microscopy

Targeted Cancer Therapeutics(paclitaxel,abraxane)

Drug DeliveryMEMS based molecular diagnostics

A view of the nanobiotechnology market and challenges

US$19Bn in 2012

US$200Mn/yrTo the NNI

65%

20%

15%

Intellectual Investment

United StatesEuropeRest of World

40 Nanobio-

technologyproducts

Key Challenges for the Industry

• FDA approval of nanobiotechnologyproducts is stringent and is mostly driven towards topical applications

•Nascent nature of the field shows poor proof of concepts and cross application of patents across other disciplines prevents commercialization

•Venture capitalists are looking for quick exit only to recover investments after first technology licensing

•Less than 40 products commercialized•Limited engagement with big pharma

Lack of suitable

technology transfer

initiatives

Lack of sustained venture capital

interest

Regulatory and socio-

ethical concerns

Lack of sufficient proof of

concepts and patent wars

VIEWING INNOVATION ECOSYSTEMS IN US, AUSTRALIA AND MALAYSIA THROUGH THE AHE PARADIGMS

Instances of Various Paradigms of AHE play out across nanobiotechnology commercialization activities across US, Australia and Malaysia

Viewing Customers as Need Based Clusters1

Nanomedicine Roadmap Initiative in collaboration with Private Pharma Majors

Open Innovation Initiatives to facilitate drug discovery and development including nanodrug delviery systems

Gamification platforms to address protein folding challenges on a global scale

United States of America

Paradigm Shift Implications for the AHE in US, Malaysia and Australia

Regions as Centers of Competenceand Markets

2

MALAYSIA AUSTRALIA

MOSTI Invests US$800 Million for leveraging competence in nanotechnology for MEMS design

Collaboration with US leading to FDI of US$45 Billion for tech

know how and training US$1 billion investment into the

Biotech Cluster in Malaysia by Pharma and Life Sciences Majors

to develop therapeutics and reach out to the APJ region

Australian and EU collaboration program-FEAST for nanobioresearch and commercialization Collaboration between private

entities in Australia and China for technology commercialization

Paradigm Shift Implications for the AHE in US, Malaysia and Australia

Multiple Innovation Models Dependent Upon Business Need and Maturity

3

Formation of Precompetitive Alliances such as the NanomedicinesAlliance for rapid nanobiotherapeutic commercialization

Technology licensing agreements between nanotechnology startups and pharma majors for molecular diagnostics

Paradigm Shift Implications for the AHE in US, Malaysia and Australia

Governments as Facilitators of Innovation 4

International Dialogue on Responsible Research and Development of Nanotechnology,

Foresight Guidelines on Molecular Nanotechnology International Consensus Standards TheAustralia Group have engaged separately in formal and informal

ways, to facilitate international policies for regulation of nanotechnology

The facilitation is dynamic ranging from clear directive focussed to creating environments and engaging as an advisor based on the maturity of the industry

UNITED STATES , EU & AUSTRALIA

Structured and Unstructured Environments Equally Facilitate Commercialization of Nanobiotechnology

UNITED STATES AUSTRALIA MALAYSIA

• Central Governance(NNI)

• Industry Consortium Driven

• Industry Consortium• Driven+Government

Driven

• Government directs programs

•Drives International Riskmanagement collaborations for commercialization throughIRC

•Government serves as afacilitator with focus

only on creating awarnesson safety aspects.

• Government plays an advisory role that handholds until certain time of maturity

• NNI and NIH run competitive grant programs for international collaborative projects and SME development.

• Private sector focused on international linkages for innovation

• ARC and ARCNN facilitate international research collaborations in nanobiotech

• Autonomous industry bodies such as ANA and ANMA facilitate industry linkages and collaborations

• MOSTI facilitates collaborations and HRD development

• Industry bodies such as BiotechCorp engage in partnering with global players in biotechnology and nanobiotechnology

Conclusion

The AHE model offers a perspective on how nascent technologies could be commercialized across global boundaries

It explores the possibilities of driving innovation by addressing key paradigm shifts that serve as pillars for its implementation

Next Steps

Research is needed to understand how knowledge flows across the entities may be governed so as to address the paradigms discussed

Research on impact of open innovation and new business models on knowledge flows and capacity development for innovation ecosystems in emerging markets

Viability of new business models and penetration of paradigms in emerging markets

THANK YOU

You can reach me at :bhuvaneashwar.subramanian@hp.com

oreashwarsubramanian@gmail.com