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FINDING THE ENDLESS FRONTIER:  LESSONS FROM LIFE SCIENCES FOR ENERGY INNOVATION IAIN COCKBURN, BU AND NBER SCOTT STERN, NORTHWESTERN AND NBER JACK ZAUSNER, MCKINSEY & CO NBER ACCELERATING ENERGY INNOVATION CONFERENCE WASHINGTON, DC  OCTOBER 2009
The Nixon Innovation Agenda ,[object Object],[object Object],[object Object],[object Object],[object Object],During the 1970s, Federal programs directed significant attention and resources towards both energy and life sciences innovation….
Federal funding priorities ,[object Object]
The Power of Life Sciences Innovation Despite the complex nature of  HIV/AIDS and high transmission  potential, AIDS combination  therapies developed in the early  1990s have dramatically reduced the AIDS death rate in the developed world
Drivers of the Life Sciences Innovation System ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Evolution of the Life Sciences Innovation System Big Pharma CROs Good Old Days Public sector science Big Pharma Biology Drugs The Present Public sector science Tool biotechs Product biotechs
Evolution of the Life Sciences Innovation System ,[object Object],[object Object],[object Object],[object Object]
Creates a highly complex, interdependent (and hard-to-manage)  innovation network Powell et al. (2005)
LESSONS FOR A SCIENCE-BASED CLIMATE CHANGE INNOVATION SYSTEM
Lesson #1: Slow and Steady ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Rome wasn’t built in a day—from an economic and innovation policy perspective, the lesson is that the design principles and technologies that comprised ancient Rome took centuries to develop.
Lesson #2: Bottom-up Agenda ,[object Object],[object Object],[object Object],[object Object],Attempts to significantly reduce the freedom of investigators and entrepreneurs rarely result in important breakthroughs precisely because they reduces the diversity of experimentation.
Lesson #3: Competition ,[object Object],[object Object],[object Object],[object Object],Lack of competition within innovation results in both traditional static losses of monopoly pricing, and reduced diversity and experimentation within the research community itself
Lesson #4: Transparency, Openness ,[object Object],[object Object],[object Object],[object Object],Openness facilitates access to prior discoveries and provides incentives for the disclosure of new discoveries—a powerful institutional framework for step-by-step scientific and technical progress.
Lesson #5: Rewarding Innovators ,[object Object],[object Object],[object Object],[object Object],[object Object],Regulation governing product market access can play a crucial role in shaping innovation incentives; product market regulation and intellectual property rights policy can be powerful complements
Lesson #6: Diversity, adaptation ,[object Object],[object Object],[object Object],[object Object],[object Object],A tolerance for diversity and a willingness to adapt have been hallmarks of the life sciences innovation system.  Effective institutions and infrastructure for life sciences research have emerged from an extraordinary amount of organizational and institutional experimentation—within which most initiatives fail.
Conclusion ,[object Object],[object Object],[object Object],[object Object],[object Object]

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Finding the Endless Frontier: Lessons from Life Sciences for Energy Innovation

  • 1. FINDING THE ENDLESS FRONTIER: LESSONS FROM LIFE SCIENCES FOR ENERGY INNOVATION IAIN COCKBURN, BU AND NBER SCOTT STERN, NORTHWESTERN AND NBER JACK ZAUSNER, MCKINSEY & CO NBER ACCELERATING ENERGY INNOVATION CONFERENCE WASHINGTON, DC OCTOBER 2009
  • 2.
  • 3.
  • 4. The Power of Life Sciences Innovation Despite the complex nature of HIV/AIDS and high transmission potential, AIDS combination therapies developed in the early 1990s have dramatically reduced the AIDS death rate in the developed world
  • 5.
  • 6. Evolution of the Life Sciences Innovation System Big Pharma CROs Good Old Days Public sector science Big Pharma Biology Drugs The Present Public sector science Tool biotechs Product biotechs
  • 7.
  • 8. Creates a highly complex, interdependent (and hard-to-manage) innovation network Powell et al. (2005)
  • 9. LESSONS FOR A SCIENCE-BASED CLIMATE CHANGE INNOVATION SYSTEM
  • 10.
  • 11.
  • 12.
  • 13.
  • 14.
  • 15.
  • 16.

Editor's Notes

  1. Revolutionary advances in basic science have generated radical shifts in the technology base of commercial activity: chemistry  biology Dis-integration of the industry into specialized layers Emergence of new organizational forms (science-based entrepreneurship, AMCs), and supporting “infrastructure” (VCs, patent lawyers, university TLOs, etc.) Adaptation of incumbent firms, federal agencies, universities