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Gaining strategic leadership in technology

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  1. 1. BIO ASIA 2010 Gaining strategic leadership in technology – The private Seed Sector approach (Vijay) Vijayaraghavan Cornell – Sathguru [email_address] [email_address] Gaining strategic leadership in Technology (c) Cornell - Sathguru
  2. 2. Discussion focus <ul><li>Understanding strategic drivers for technology leadership. </li></ul><ul><li>Understanding seed industry priority setting process for research and technology acquisition. </li></ul><ul><li>The IP and technology transfer policy and process. </li></ul><ul><li>The approach to consolidation. </li></ul>Gaining strategic leadership in Technology (c) Cornell - Sathguru
  3. 3. Vision and Strategy <ul><li>Organization vision drives technology leadership </li></ul><ul><li>Strategy is made up of a set of elements that are perceived to accomplish the VISION. </li></ul><ul><li>Seed companies in the world generally have similar strategy, with similar capacity with similar people, with similar ideas, with similar market presence, and operating in similar environment. </li></ul>Gaining strategic leadership in Technology (c) Cornell - Sathguru
  4. 4. Seed company strategic landscape <ul><li>However, the winning companies want to aim at being only one of what they do. </li></ul><ul><li>If not, they aim at being the first one </li></ul><ul><li>Technology leadership in many ways help to reach that first position. </li></ul>Gaining strategic leadership in Technology (c) Cornell - Sathguru
  5. 5. Technology Management function is a strategic component of building and retaining competitive technology advantage. Gaining strategic leadership in Technology (c) Cornell - Sathguru
  6. 6. Strategic planning for technology leadership. <ul><li>Understanding Trends. </li></ul><ul><li>Technology development / acquisition strategies. </li></ul><ul><li>Decision process for trait selection and technology adoption. </li></ul><ul><li>IP and technology management policies </li></ul><ul><li>Corporate consolidation. </li></ul>Gaining strategic leadership in Technology (c) Cornell - Sathguru
  7. 7. Understanding trends <ul><li>Economic trends </li></ul><ul><li>Demographic trends </li></ul><ul><li>Understanding related trends </li></ul>Gaining strategic leadership in Technology (c) Cornell - Sathguru
  8. 8. The Changing Economic Profile of Nations. © Vijayaraghavan-Sathguru Cornell GDP Growth/year 2006 2007 2008 2009 (E) World 5.1 5.0 4.1 1.8 Advanced Economies 3.0 2.7 1.7 (-)0.9 Emerging Economies 7.9 8.0 6.9 5.0
  9. 9. Impact on technology generation and technology flow <ul><li>Technology generation, hitherto has been restricted to few countries – (Part 1 countries) </li></ul><ul><li>A set of new economies emerge as aspirants of new technology generators. Initially, they will be recipients from Part 1. (Mezzanine level) </li></ul><ul><li>A set of low income countries do not know where to begin and how to approach. Development investors begin to create new windows for them (Part 2 countries). </li></ul>© Vijayaraghavan-Sathguru Cornell
  10. 10. <ul><li>INFORMED DECISIONS </li></ul><ul><li>CONVERGING COMMUNITIES </li></ul>© Vijayaraghavan-Sathguru Cornell
  11. 11. Speed of innovation poses a major challenge for Corporate differentiation. <ul><li>Lab to Market Timeline factor </li></ul><ul><li>Speed of invention increases “Routine” factor, threatening our competitive edge. </li></ul>© Vijayaraghavan-Sathguru Cornell
  12. 12. Shifting geographical markets begins to take research in Part 1 countries, proximate to new markets. <ul><li>Transnational research centers. </li></ul><ul><li>Off-shoring and out-sourcing research. </li></ul><ul><li>Joint research initiatives with in-country partners </li></ul><ul><li>Opening access to technologies to new markets. </li></ul>© Vijayaraghavan-Sathguru Cornell
  13. 13. Domestic enterprises begin to wake up – search for ways to accelerate innovations . <ul><li>Emerging enterprises do not have access to fundamental inventions – They look at several access options, with the goal of minimizing the risk of being sued. </li></ul>© Vijayaraghavan-Sathguru Cornell
  14. 14. Technology access issues <ul><li>Every gene of value is protected by patent - Lack of access to basic biological materials – major hurdle… </li></ul><ul><li>Accessing germplasm is governed by even more restrictive factors. </li></ul><ul><li>Are there similarities in other sectors? How do they handle this? </li></ul>
  15. 15. “ INTEL INSIDE” is evolving in biological sector?
  16. 16. Learning from other sectors.. <ul><li>Contracting and sub-licensing for strategic advantages.. </li></ul><ul><li>Basic inventors and product developers </li></ul><ul><li>Consortium partnerships for global research and commercialization </li></ul><ul><li>Embedded products – sub-license strategy.. </li></ul><ul><li>Operating systems and application software bundling – similarities for molecular research and breeding.. </li></ul>
  17. 17. Strong interest Developing / accessing platform technologies. <ul><li>Technologies that can address CROSS FUNCTIONAL AND CROSS PRODUCT APPLICATIONS. </li></ul><ul><li>Technologies that can address PRODUCT needs across the GLOBAL regions. </li></ul><ul><li>Technologies that can be integrated with other technologies/traits. </li></ul>YOU CAN’T ACCESS BROADER MARKETS WITHOUT PLATFORM TECHNOLOGIES © Vijayaraghavan-Sathguru Cornell
  18. 18. Leapfrogging options. <ul><li>Some enterprises have limitation of not – so – long engagement in upstream research. </li></ul><ul><li>The solution lies in bridging the low “INTERNAL R&D” with “EXTERNAL R&D”. </li></ul><ul><li>Academic partnerships gain critical mass in research ability in the soonest possible time </li></ul>Gaining strategic leadership in Technology (c) Cornell - Sathguru
  19. 19. Open source vs Protected assets <ul><li>Open source interest is catching up. </li></ul><ul><li>Several discoveries will be placed to be useful to wide audience in science – Principle of incrementation. (freedom Vs Control balance) </li></ul><ul><li>Speed to market will be the criteria rather than the protection factor (DO NOT LOCK THE IP – GET IT OUT THERE TO REACH MARKETS) </li></ul><ul><li>“ Use it” or “Lose it”. </li></ul>© Vijayaraghavan-Sathguru Cornell
  20. 20. PUBLIC - CORPORATE MATERIAL ACCESS <ul><li>BIO BANKS EMERGING!!!! </li></ul>Cell lines Biomarkers – plasmids Sequence annotations © Vijayaraghavan-Sathguru Cornell
  21. 21. IP implications <ul><li>Smart management of IP assets </li></ul><ul><li>You can’t patent that – Can you? </li></ul><ul><li>(more and more demand for fundamental science not to be protected)… </li></ul>© Vijayaraghavan-Sathguru Cornell
  22. 22. Technology reach to markets – We can’t lose time. Do you know you have not missed the markets? © Vijayaraghavan-Sathguru Cornell
  23. 23. Large and emerging enterprises begin to collaborate more aggressively. <ul><li>Valuation factors shift research results seamlessly from smaller to larger enterprises (Vice-versa), accelerating smarter bundling of technologies and smarter commercialization. </li></ul>© Vijayaraghavan-Sathguru Cornell
  24. 24. Emerging relationships will drive consolidation of research investments and research efforts. <ul><li>Private sector TT </li></ul>Public research investment Public research Market Traditional relationship model © Vijayaraghavan-Sathguru Cornell
  25. 25. The new relationship model – converging investment and research efforts. <ul><li>Corporate research </li></ul>Public&private investors Public research Market © Vijayaraghavan-Sathguru Cornell
  26. 26. Strategic planning for target products/target traits. Gaining strategic leadership in Technology (c) Cornell - Sathguru
  27. 27. How do we determine priorities for target products / target traits? <ul><li>Territorial market trends – changing consumer preferences. (demographic, economic growth factors, market access opportunities) </li></ul><ul><li>Regulatory framework in the region. </li></ul><ul><li>Labor availability and wage cost factors. </li></ul><ul><li>Process industry need for traits. </li></ul><ul><li>Natural resource constraints (depleting natural resource). </li></ul><ul><li>Learning from other sector developments (energy sector, textiles et al) </li></ul>Gaining strategic leadership in Technology (c) Cornell - Sathguru
  28. 28. Gaining strategic leadership in Technology (c) Cornell - Sathguru Big Bazaar, India
  29. 29. Gaining strategic leadership in Technology (c) Cornell - Sathguru
  30. 30. 5. Consumer concern for health, safety and environment. <ul><li>Economic growth triggers concerns for health, safety and environment protection. </li></ul><ul><li>They impact the standards for food, composition of food and the categories of food. </li></ul><ul><li>This is one of the key drivers for technology change. </li></ul>Gaining strategic leadership in Technology (c) Cornell - Sathguru
  31. 31. Having determined priorities, how do we go about the development process? <ul><li>A successful event in biotech products and a market ready hybrid development are long drawn processes. </li></ul><ul><li>The tactics lie in securing and possessing worldwide rights to commercially relevant products with exceptional traits. </li></ul>Gaining strategic leadership in Technology (c) Cornell - Sathguru Adapting innovation for market ready applications
  32. 32. Choose between in-house development vs. licensing <ul><li>Identification of trait gene. </li></ul><ul><li>In-house development of trait gene Vs. In-licensing of the trait gene. </li></ul><ul><li>Making choice of other biological materials – Promoter, selectable marker etc.. </li></ul><ul><li>In-licensing of other biological materials. </li></ul><ul><li>Selection of the right parent material for trait development and selection of right germplasm for trait integration. </li></ul>Gaining strategic leadership in Technology (c) Cornell - Sathguru
  33. 33. Choosing the licensing source. <ul><li>Industry source. </li></ul><ul><li>Academia. </li></ul><ul><li>Non-Profit sources </li></ul><ul><li>- Cambia & BiOS, BIOFORGE. </li></ul><ul><li>- CIRAD (Agriculture Research for developing nations)- Géné-PI </li></ul><ul><li>- JOHN INNES CENTER (UK). - </li></ul><ul><li>- PIPRA(Public Intellectual Property Resource for Agriculture) </li></ul><ul><li>- NRC, Canada and few others. </li></ul>Gaining strategic leadership in Technology (c) Cornell - Sathguru
  34. 34. In-licensing from Private sector and the Academic research organizations. <ul><li>Skillful choice can be made for in-licensing from private sector, large seed companies, and contract research organizations for genes of interest & research tools in complimentary products. </li></ul><ul><li>Technology transfer organizations in the public research system. </li></ul><ul><li>Technology Transfer organizations in the private system. </li></ul><ul><li>Product co-development with public good co-investments. </li></ul>Gaining strategic leadership in Technology (c) Cornell - Sathguru
  35. 35. Building Intellectual assets for growth and consolidation <ul><li>Technology development, sourcing and pooling for accelerated commercialization. </li></ul><ul><li>Contract research opportunity for multiple product development – Outsourcing opportunities. </li></ul><ul><li>Infrastructure outsourcing – Infrastructure sharing. </li></ul><ul><li>Development pipeline with differential maturities of “time to market”. </li></ul>Gaining strategic leadership in Technology (c) Cornell - Sathguru
  36. 36. Technology access strategies. <ul><li>Sub-licensing as quick access to new traits – learning curve opportunity for emerging enterprises. </li></ul><ul><li>Contract research for early stage enterprises for new trait development. </li></ul><ul><li>Limited territorial licensing for regional leadership. </li></ul><ul><li>Master licensing for global leadership. </li></ul><ul><li>Patent/PVP & Trade marks rights for global leadership. </li></ul><ul><li>Off-patent traits – Block buster off-patent 2013-2015 </li></ul>Gaining strategic leadership in Technology (c) Cornell - Sathguru
  37. 37. Acquisition of technology power through inorganic growth. Gaining strategic leadership in Technology (c) Cornell - Sathguru
  38. 38. Gaining strategic leadership in Technology (c) Cornell - Sathguru
  39. 39. Inorganic growth <ul><li>Acquisition of small enterprises by Industry Majors. </li></ul><ul><li>Leveraged buy-out of larger enterprises by smaller enterprises. </li></ul><ul><li>Merger of peers for ensuring economy of scale and geographical synergy. </li></ul>Gaining strategic leadership in Technology (c) Cornell - Sathguru
  40. 40. Conclusion. <ul><li>Consolidation in seed sector will be through strategic linkages for research, trait development and market access. </li></ul><ul><li>Emerging market opportunities will create new alliances, breaking traditional models of strategic linkages. </li></ul><ul><li>Center of growth drivers will move to emerging markets in Asia and other regions. </li></ul>Gaining strategic leadership in Technology (c) Cornell - Sathguru
  41. 41. Conclusion <ul><li>Enterprises with no focus on research will struggle to retain market share as markets become highly value conscious. </li></ul><ul><li>Your ability to generate IP, access or own and manage IP will determine the speed of innovation </li></ul><ul><li>Corporate research and technology management is an essential component of corporate planning, driving growth, innovation and sustainability. </li></ul>Gaining strategic leadership in Technology (c) Cornell - Sathguru