BETWEEN LEAPFROGGING & SELF DISCOVERY THE FUTURE OF THE INDIAN BIOTECH INDUSTRY SEMINAR ON BIOTECH IN BANGALORE: PAST EXPERIENCES, FUTURE TRAJECTORIES (SUPPORTED BY UKIERI) CENTER FOR PUBLIC POLICY CHIRANTAN CHATTERJEE, IIM BANGALORE
SOME MUSINGS• Overheard at Bangalore BIO India: •the Biotech Industry is at $4 billion (some idle questions?) • What share of that is Biocon’s? • How much does China invest in biotech R&D? • Still just a fraction of Global Biotechnology• So what is the fuss about?
BETWEEN LEAPFROGGING & SELF-DISCOVERY • Leapfrogging among nations (Krugman et.al 1993) and firms (Fudenberg and Tirole 1985) Intuition: Established monopolists may systematically have less incentive to innovate than potential rivals and thus may in effect eventually cede technological leadership (a partial equilibrium result). • Economic Development as Self-Discovery (Hausmann and Rodrik 2003) Intuition: Learning at what one is good at in a general equilibrium set-up.
EVIDENT IN MANY FIRMS OSCILLATING IN THIS DICHOTOMY!(A HYBRID MODEL?) Xcyton, Connexios, Suven Labs, Jubilant, Biocon, Glenmark, Advinus, Strand Genomics among many others…. What’s next for them?
WHAT’S NEXT FOR THEM?(REGULATORY AND OTHER CHALLENGES) BIG PHARMA PATENT CLIFF And Many More… Biosimilars Healthy Tapping into the Global respect/collaboration Networks of Bio- between institutions Pharma Funding? and between firms Conduit for Commercializing Academic Research and Traditional Knowledge
FROM E PLURIBUS UNUM TO E PLURIBUS PLURIBUM(WHY IS A STRATEGY PROFESSOR TALKING PHILOSOPHY/RELIGION!) - Experimentation with organizational forms and firm boundaries. - Oscillation means patience & patience requires deep reservoirs of faith - No respite (till there are success stories, as Vijay likes to put it). - What the GoI should (and should not) do..almost like parenting an adolescent….
WHAT THE GOVT. SHOULD (AND SHOULD NOT DO!)(SOME IDEAS FOR CORRECTING MARKET FAILURES, IP MECHANISMS) Create a MARKET FOR IDEAS BY FACILITATING INNOVATIVE ENTREPRENEURS more than established firms? / Operationalizing IP mechanisms for appropriating rents from innovation Conduit for COMMERCIALIZATION OF ACADEMIC RESEARCH? Efforts at NCBS/CCMB? Need for many more…? Initiatives like NMITLI could not only fund governmental but INDUSTRY RESEARCH. Better HARMONIZATION BETWEEN S&T AND THE COUNTRY’S PUBLIC HEALTH requirements. A 3RD PARTY EVALUATOR OF IDEAS, and generation of capable managers, even if founders have low Entrepreneurial Ability…(reduces dysfunctional firms in the economy, Zingales (2000)).
TALKING ABOUT ENTREPRENEURS(VARIATION IN ENTREPRENEUR TYPES, ONGOING PROJECT WITH MOSTAFA, UWO) Entrepreneurial Variation: Returnee Scientist Entrepreneur. Domestic Scientist Entrepreneur. Academic Entrepreneur (domestic or returnee coming from an academic institution). Spin-offs: From Traditional Pharma/Larger Bio-tech. No relation to Bio-pharma.
TALKING ABOUT THE (AMBIDEXTROUS) SCIENTISTS(A PASTEUR’S QUADRANT IN INDIA CONNECTING LEAPFROGGING/SELF-DISCOVERY?)
TALKING ABOUT (VANISHING) PUBLIC SCIENCE IN BIO-PHARMA Comp any Publications Citations Dr. ReddyS Laboratories 620 4258 Ranbaxy Laboratories Ltd. 401 2683 Wockhardt Ltd. 214 959 Hindustan Antibiotics Ltd. 203 1211 Biocon 111 446 Suven Life Sciences Ltd. 100 745 Indian Immunologicals Ltd. 97 254 Panacea Biotec Ltd. 95 1068 Serum Institute Of India Ltd. 91 438 Lupin Laboratories Ltd. 74 374 Source: IIMB Doctoral Student Priyanka Shukla’s On-going Research
SOME PRACTITIONER LEVEL THOUGHTS (AS OPEN QUESTIONS?)- The Sector/Country needs Scientists who are Good Managers (How? Who will provide that training on R&D Management?)- Francis Collins, NIH Director was surprised that the country has no high- throughput screens yet? (Food for thought?)- Right combination of INCENTIVES & INSTITUTIONS to tap into the Global R&D Labor Market (of Indian and non-Indian Origins).- Why just Bangalore/Karnataka? (A question on diffusion/ecosystem)
TODAY’S SPEAKERS & THEIR KEY POINTS- Ian: Changed Science Business Model (So is there going to be a Hybrid Model? Or it is going to be another IT(Services) story?)- Vijay: Regulatory Paralysis (yes, but how can one make good regulation without careful economic analysis on the effects of regulation?)
A FINAL WORD ON A BRIGHT ‘FUTURE’(WITH SOME THOUGHTS FROM SHAKESPEARE) - Lots of new entrants and start-ups. - I find a lot of vibrancy in the youth (source of disruption?) about biotechnology. - Very capable scientists. - Ecosystems and institutions (still evolving!). “There is a tide in the affairs of men, which, taken at the flood, leads on to fortune; Omitted, all the voyage of their life is bound in shallows and in miseries. On such a full sea are we now afloat; And we must take the current when it serves, Or lose our ventures.” – From Julius Caesar, William Shakespeare.
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