Israel: An Innovation Powerhouse

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  • Israel: An Innovation Powerhouse

    1. 1. Delivering Innovation to the Global Market The Israeli Innovation Model and the Role of Technology Transfer Nava Swersky Sofer IFC TTF Convocation Washington, DC 14-15 May 2009
    2. 2. Nava Swersky Sofer <ul><li>Big pharma 1991-1995 </li></ul><ul><ul><li>VP, Ciba-Geigy AG (now Novartis), Switzerland </li></ul></ul><ul><li>Venture capital 1995-2005 </li></ul><ul><ul><li>Partner, Sanderling Ventures, California </li></ul></ul><ul><ul><li>Founder & Managing Partner, Columbine Ventures, Israel </li></ul></ul><ul><ul><li>Partner, Concord Ventures, Israel </li></ul></ul><ul><li>Start-up company management and boards in US, Europe and Israel </li></ul><ul><li>Tech transfer since 2005 </li></ul><ul><ul><li>President & CEO, Yissum – Hebrew University Technology Transfer 2005-2008 </li></ul></ul><ul><ul><li>International advisor </li></ul></ul><ul><li>Government & public </li></ul><ul><ul><li>Israel’s $50 mil biotech consortium under OCS, 2000 </li></ul></ul><ul><ul><li>BioJerusalem board, 2006-2009; Israel Tech Transfer Organization (ITTN) board, 2008 </li></ul></ul><ul><ul><li>Ontario Centers of Excellence Center for Commercialization of Research, since 2008 </li></ul></ul><ul><ul><li>NanoIsrael 2009, 2010 co-chairperson </li></ul></ul>
    3. 3. Israeli Innovation
    4. 4. Israel An Innovation Powerhouse <ul><li>Innovative: 1 st in R&D investments with 4.5% of GDP </li></ul><ul><li>Globally open </li></ul><ul><ul><li>4th most positive towards globalisation </li></ul></ul><ul><ul><li>Second largest no. of NASDAQ-traded companies after US; >60 Israeli companies traded in Europe </li></ul></ul><ul><li>Entrepreneurial </li></ul><ul><ul><li>1 st in start-ups per capita </li></ul></ul><ul><ul><li>2 nd in business entrepreneurship </li></ul></ul><ul><li>World-class science </li></ul><ul><ul><li>3 rd in quality of scientific research institutions </li></ul></ul><ul><ul><li>4 Nobel prizes in past 5 years </li></ul></ul><ul><li>Human capital </li></ul><ul><ul><li>2 nd in availability of qualified scientists & engineers </li></ul></ul><ul><li>3 rd in VC availability </li></ul>Source: IMD World Competitiveness Report, 2008; World Economic Form Competitiveness Report, 2008-9
    5. 5. Government’s Major Role: Office of the Chief Scientist <ul><li>Established 1969 </li></ul><ul><li>R&D support </li></ul><ul><li>Bi-national funds </li></ul><ul><li>VC industry creation through Yozma funds </li></ul><ul><li>Start-up support – Tnufa, Heznek </li></ul><ul><li>Incubators </li></ul><ul><li>Academia-industry collaborations – Magnet </li></ul>
    6. 6. Magnet Provides Unique Tech Transfer Support <ul><li>Royalty-free OCS grants support industry-academia collaborations </li></ul><ul><li>66%-90% funding </li></ul><ul><li>Easy, inexpensive access point for industry </li></ul><ul><li>Programmes: </li></ul><ul><ul><li>Magnet </li></ul></ul><ul><ul><ul><li>Multi-participant industry-academia consortia </li></ul></ul></ul><ul><ul><ul><li>3-6 years, 66% of industry budget and 80% of academic budget covered; remaining academic budget covered by industry </li></ul></ul></ul><ul><ul><li>Magneton </li></ul></ul><ul><ul><ul><li>One on one industry-academia collaborations </li></ul></ul></ul><ul><ul><ul><li><2 years, NIS 3.4 mil ($810k) of which 66% funded </li></ul></ul></ul><ul><ul><li>Nofar : $100k proof of concept 90% funded by gov’t, 10% by company which gets ‘first look’ </li></ul></ul><ul><ul><li>Katamon: w ater only; academia/industry/infrastructure </li></ul></ul>
    7. 7. Incubators Bridge Academia & Market <ul><li>Original 1991 job creation scheme turns into growth engine </li></ul><ul><li>Gov’t funds 85% of 2 year, $350-600k programme </li></ul><ul><ul><li>Biotech can receive third year </li></ul></ul><ul><li>24 incubators incl. 15 peripheral, 1 biotech </li></ul><ul><li>200 ongoing projects </li></ul><ul><li>60% in life sciences </li></ul><ul><li>1,100 graduated companies, of which </li></ul><ul><ul><li>59% received follow-on funding, 40% still active </li></ul></ul><ul><li>Total $2 Billion raised, a 4.5x leverage on gov’t funding </li></ul><ul><li>Privatisation attracts professional investors </li></ul>
    8. 8. Tech Transfer: The Secret Engine <ul><li>World pioneer in tech transfer since 1959 </li></ul><ul><li>Two of world’s top 15 tech transfer companies </li></ul><ul><ul><li>Yeda, Weizmann Institute of Science (1959) </li></ul></ul><ul><ul><li>Yissum, Hebrew University of Jerusalem (1964) </li></ul></ul><ul><li>>$8 Billion in licensed product sales </li></ul><ul><li>$ hundreds of millions in tech transfer revenues </li></ul><ul><li>Dozens of spin-off companies </li></ul><ul><li>Success stories </li></ul><ul><ul><li>Copaxone®, Exelon™, Erbitux®, Azilect™, Doxil™, Rebif®, Cherry tomatoes, peppers, NDS Ltd. encryption algorithm, MobilEye Ltd. driver assistance system </li></ul></ul>Source: ITTN
    9. 9. The Israeli Tech Transfer Model <ul><li>Company, not office </li></ul><ul><ul><li>Wholly owned subsidiary with business focus </li></ul></ul><ul><li>Business leaders on boards </li></ul><ul><ul><li>Balance academic viewpoint </li></ul></ul><ul><li>Clear IP ownership… </li></ul><ul><li>… with generous revenue sharing (40-60%) </li></ul><ul><li>One-stop-shop for industry – leverage relationship </li></ul><ul><ul><li>Sponsored research + licensing </li></ul></ul><ul><ul><li>Sometimes consulting </li></ul></ul><ul><li>Focused on royalties </li></ul>
    10. 10. One Example: Yissum <ul><li>Over $1.3 Billion annual sales of Hebrew University-based products </li></ul><ul><ul><li>Exelon™ 2008 sales by Novartis $815 mil </li></ul></ul><ul><ul><li>Doxil™ 2008 sales by J&J $430 mil </li></ul></ul><ul><ul><li>Tomato and pepper seeds </li></ul></ul><ul><li>5,500 patents </li></ul><ul><li>1,600 inventions </li></ul><ul><li>480 licenses </li></ul><ul><li>70 spin-offs </li></ul>
    11. 11. Yissum’s 2008 Numbers <ul><li>$60 million in revenues </li></ul><ul><ul><li>Including industry-sponsored research </li></ul></ul><ul><li>60 new patents granted </li></ul><ul><li>128 new inventions </li></ul>
    12. 12. Yissum 2005-2008 <ul><li>Revenues up 76%, from $34 mil to $60 mil </li></ul><ul><li>Licensed product pipeline up 50% </li></ul><ul><li>Non-healthcare up from 1/3 to ½ </li></ul><ul><li>1,200 agreements signed, including 120 license and option </li></ul><ul><ul><li>2.3x increase over previous 3 year period </li></ul></ul><ul><li>New acceleration programmes </li></ul><ul><ul><li>Baby Seed </li></ul></ul><ul><ul><li>Cleantech </li></ul></ul><ul><li>New clients </li></ul><ul><li>Excellent team, best practices, state of the art systems </li></ul>
    13. 13. Tech Transfer Key Success Factors <ul><li>Create the right environment </li></ul><ul><ul><li>Business-focused organisation with operational independence </li></ul></ul><ul><ul><li>Clear IP ownership </li></ul></ul><ul><ul><li>Generous revenue-sharing policy </li></ul></ul><ul><ul><li>An excellent team with relevant industry experience </li></ul></ul><ul><li>Get lucky! </li></ul>

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