1

‘Life science’ cluster in West

24.Feb. 2014

Group 1:

Zolboo Bataa

Lu ChenMarwa Mostafa

Nikhil Mani

Berk Mumyakmaz

Instructors: Prof. Dr. Annemieke J.M. RoobeekProf. Fred W.I. Lachotzki Assistants:Willem van Golstein Brouwers, MSc Dr. Tao Zhu

2

Sweden, Overall economic and cluster composition

Global life science industry

West Sweden Life science cluster

Current and potential challenges and Recommendations

Agenda

3

Sweden, Overall economic & Cluster composition

Economic growth and GDP, macro-economic outlook

Indicator Name 2010 2011 2012

GNI per capita, PPP (current Int’l $)

40,130

42,290

43,980

Population (Total)

9,378 Mil

9,449 Mil

9,516 Mil

GDP (current US$) 463 Bill 536 Bill

524 Bill

GDP growth (annual %) 6.56 2.93 0.95

Lowest inflatio

n %

Budget surplus

R&D vs Econo

my

Competitive firms

Sizeable CA +

FMW

Benefits Tax system

Structure

Sweden, Overall economic & Cluster composition

Productivity growth

Pri

vat

e2.4 %1.9 %

Public

1.4 %1.4 %

Reform

LAW

EU

5

Sweden, Overall economic & Cluster composition

Innovation measures

R&D

Continuity

Agency

VINNOVA

Swedish compete

nce

New Knowledg

e conversio

nEU

Framework

6

Sweden, Overall economic & Cluster composition

Social measures

• -AVG 496 score in literacy

• 80% Good health

• AVG Age 82

-21% Gross disposal-1.7 house p.p

-Only 4% felt no access to green area

-85% Happy

-Average earning $ 37,094 p.a

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Sweden, Overall economic & Cluster composition

Sweden's cluster composition

Cluster Identity

and Attractiven

ess

Innovation and R&D

Business developme

nt

-Identity building-Vision and Strategy-Cluster networking-Regional and cluster branding

-Market Intelligence-Commercial cooperation-Trade fairs-Global promotion

-Bridging innovation gaps(lobbying , upgrading systemsIncubators etc.)-New products and processes

8

Sweden, Overall economic & Cluster composition

Nova Med Tech (East Mid)-Biomedical engineering-60 companies

Biotech Umea (Upp North)-70 companies-3000 ppl

West Sweden Cluster-Urban future-The Marine environmental-Transport solutions-Green chemistry

-Life science

North Mid Sweden cluster-12 clusters

-Forestry-Paper-Steel-Tourism

Stockholm ICT cluster-100 % Broadband-19,500 companies-6800 Students-1000 PHD

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Sweden, Overall economic & Cluster composition

Analysis of the overall business environment

ChinaSingaporeIndiaIndonesia

UKDEFRCH

Established Emerging Bay area Atlanta Boston Chicago Los Angeles DenverNew York FloridaPhiladelphia Houston

Global Life Science industry

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Global challenges

Global Life Science industry

Marketing Dynamic• Government

regulations• Spread of the

unhealthy life style

• - Increase the demand for innovative treatment

Regulatory Landscape• Counterfeit

drugs, illegal practices

• New drug approval

• Changing TAX implications

Business portfolio development• Dramatic shift in

the product types

• Threat of generic competition

• Emerging markets and new challenges

• Increase in demand for cheaper drugs

West Sweden Life science cluster

Introduction to West Sweden and it's economic and cluster

Life Science cluster in West Sweden

West Sweden Life science cluster

Lindholmen

Gothia

InnovatiumSahlgrenska

Johanneberg

Involved organizations

West Sweden Life science cluster

15

Cluster map

Public Relations

Science Parks

Educational

Institutes

Medical Supplier

s

Government

BanksHospita

lsMedical Comp.

Drugstores

Property Services

Maintenance

Services

Health Tourism

West Sweden Life science cluster

Local transport

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Factor Conditio

ns

Competitive

rivalry and

strategy

Demand Conditio

ns

Supplier &

Supporting

Industries

West Sweden Life science cluster

Cluster Competitiveness - Diamond Analysis

• Health care facilities• Health Insurance &

Coverage• Co-operation between

Hospitals & Government

• Supporting agencies• Independent funding

bodies• Mass scale production• ROI Long term

• High skilled labour (N,I)

• Reputation & Ranking (N,I)

• Infrastructure & IT system

• P0licy & Regulations• Funding and Capital

resources

F

S

C

D

• Junior Advisory Board• Strategic task force• Local competition

advantage• Lack of FDI in cluster

(N,I)• Limited attraction for

clinical research (N,I)• Strategic alignment

• Clinical research from Vitro to Vivo (N,I)

• Antibiotic resistance (N,I)

• Pandemic (N,I)• Ageing population• National screening

scheme • Mobility services• Early disease detection

culture• Affordability• R&D Global

collaboration

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Insufficient Integration

and Cooperation

policyLack of

Entrepreneurship

PR & Promotion

issues

Unfamiliarity at Global

level

Shortage in Funding

Inadequate competitiveness in BE

Current & Potential challenges

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• Partnership with Global clusters

• Alliance with key global players

• Specialised focus

• Project efficiency

• FDI in the industry

• Representative offices in abroad

• Tax Incentives• Flexible regulations

• Continues investment

• Training & Education

• Centralized policies

• Coordinating centres

• Annual public report

• Create Task forces

Dialogue improveme

nt

Business creation

Strengthening

Competitiveness

Revenue streams

Recommendations &Strategy for Cluster growth