The document discusses strategies for seed companies to gain strategic leadership in technology. It covers understanding trends, technology management functions, strategic planning, technology access issues, intellectual property implications, and approaches to consolidation. The key points are that vision and strategic planning are essential to technology leadership, understanding economic and market trends is important for priority setting, and both organic and inorganic growth through research, licensing, and partnerships/acquisitions can help companies accelerate innovation.

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. Discussion focus Understanding strategic drivers for technology leadership. Understanding seed industry priority setting process for research and technology acquisition. The IP and technology transfer policy and process. The approach to consolidation. Gaining strategic leadership in Technology (c) Cornell - Sathguru

3. Vision and Strategy Organization vision drives technology leadership Strategy is made up of a set of elements that are perceived to accomplish the VISION. 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. Gaining strategic leadership in Technology (c) Cornell - Sathguru

4. Seed company strategic landscape However, the winning companies want to aim at being only one of what they do. If not, they aim at being the first one Technology leadership in many ways help to reach that first position. Gaining strategic leadership in Technology (c) Cornell - Sathguru

5. Technology Management function is a strategic component of building and retaining competitive technology advantage. Gaining strategic leadership in Technology (c) Cornell - Sathguru

6. Strategic planning for technology leadership. Understanding Trends. Technology development / acquisition strategies. Decision process for trait selection and technology adoption. IP and technology management policies Corporate consolidation. Gaining strategic leadership in Technology (c) Cornell - Sathguru

7. Understanding trends Economic trends Demographic trends Understanding related trends Gaining strategic leadership in Technology (c) Cornell - Sathguru

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. Impact on technology generation and technology flow Technology generation, hitherto has been restricted to few countries – (Part 1 countries) A set of new economies emerge as aspirants of new technology generators. Initially, they will be recipients from Part 1. (Mezzanine level) 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). © Vijayaraghavan-Sathguru Cornell

10. INFORMED DECISIONS CONVERGING COMMUNITIES © Vijayaraghavan-Sathguru Cornell

11. Speed of innovation poses a major challenge for Corporate differentiation. Lab to Market Timeline factor Speed of invention increases “Routine” factor, threatening our competitive edge. © Vijayaraghavan-Sathguru Cornell

12. Shifting geographical markets begins to take research in Part 1 countries, proximate to new markets. Transnational research centers. Off-shoring and out-sourcing research. Joint research initiatives with in-country partners Opening access to technologies to new markets. © Vijayaraghavan-Sathguru Cornell

13. Domestic enterprises begin to wake up – search for ways to accelerate innovations . 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. © Vijayaraghavan-Sathguru Cornell

14. Technology access issues Every gene of value is protected by patent - Lack of access to basic biological materials – major hurdle… Accessing germplasm is governed by even more restrictive factors. Are there similarities in other sectors? How do they handle this?

15. “ INTEL INSIDE” is evolving in biological sector?

16. Learning from other sectors.. Contracting and sub-licensing for strategic advantages.. Basic inventors and product developers Consortium partnerships for global research and commercialization Embedded products – sub-license strategy.. Operating systems and application software bundling – similarities for molecular research and breeding..

17. Strong interest Developing / accessing platform technologies. Technologies that can address CROSS FUNCTIONAL AND CROSS PRODUCT APPLICATIONS. Technologies that can address PRODUCT needs across the GLOBAL regions. Technologies that can be integrated with other technologies/traits. YOU CAN’T ACCESS BROADER MARKETS WITHOUT PLATFORM TECHNOLOGIES © Vijayaraghavan-Sathguru Cornell

18. Leapfrogging options. Some enterprises have limitation of not – so – long engagement in upstream research. The solution lies in bridging the low “INTERNAL R&D” with “EXTERNAL R&D”. Academic partnerships gain critical mass in research ability in the soonest possible time Gaining strategic leadership in Technology (c) Cornell - Sathguru

19. Open source vs Protected assets Open source interest is catching up. Several discoveries will be placed to be useful to wide audience in science – Principle of incrementation. (freedom Vs Control balance) Speed to market will be the criteria rather than the protection factor (DO NOT LOCK THE IP – GET IT OUT THERE TO REACH MARKETS) “ Use it” or “Lose it”. © Vijayaraghavan-Sathguru Cornell

20. PUBLIC - CORPORATE MATERIAL ACCESS BIO BANKS EMERGING!!!! Cell lines Biomarkers – plasmids Sequence annotations © Vijayaraghavan-Sathguru Cornell

21. IP implications Smart management of IP assets You can’t patent that – Can you? (more and more demand for fundamental science not to be protected)… © Vijayaraghavan-Sathguru Cornell

22. Technology reach to markets – We can’t lose time. Do you know you have not missed the markets? © Vijayaraghavan-Sathguru Cornell

23. Large and emerging enterprises begin to collaborate more aggressively. Valuation factors shift research results seamlessly from smaller to larger enterprises (Vice-versa), accelerating smarter bundling of technologies and smarter commercialization. © Vijayaraghavan-Sathguru Cornell

24. Emerging relationships will drive consolidation of research investments and research efforts. Private sector TT Public research investment Public research Market Traditional relationship model © Vijayaraghavan-Sathguru Cornell

25. The new relationship model – converging investment and research efforts. Corporate research Public&private investors Public research Market © Vijayaraghavan-Sathguru Cornell

26. Strategic planning for target products/target traits. Gaining strategic leadership in Technology (c) Cornell - Sathguru

27. How do we determine priorities for target products / target traits? Territorial market trends – changing consumer preferences. (demographic, economic growth factors, market access opportunities) Regulatory framework in the region. Labor availability and wage cost factors. Process industry need for traits. Natural resource constraints (depleting natural resource). Learning from other sector developments (energy sector, textiles et al) Gaining strategic leadership in Technology (c) Cornell - Sathguru

28. Gaining strategic leadership in Technology (c) Cornell - Sathguru Big Bazaar, India

29. Gaining strategic leadership in Technology (c) Cornell - Sathguru

30. 5. Consumer concern for health, safety and environment. Economic growth triggers concerns for health, safety and environment protection. They impact the standards for food, composition of food and the categories of food. This is one of the key drivers for technology change. Gaining strategic leadership in Technology (c) Cornell - Sathguru

31. Having determined priorities, how do we go about the development process? A successful event in biotech products and a market ready hybrid development are long drawn processes. The tactics lie in securing and possessing worldwide rights to commercially relevant products with exceptional traits. Gaining strategic leadership in Technology (c) Cornell - Sathguru Adapting innovation for market ready applications

32. Choose between in-house development vs. licensing Identification of trait gene. In-house development of trait gene Vs. In-licensing of the trait gene. Making choice of other biological materials – Promoter, selectable marker etc.. In-licensing of other biological materials. Selection of the right parent material for trait development and selection of right germplasm for trait integration. Gaining strategic leadership in Technology (c) Cornell - Sathguru

33. Choosing the licensing source. Industry source. Academia. Non-Profit sources - Cambia & BiOS, BIOFORGE. - CIRAD (Agriculture Research for developing nations)- Géné-PI - JOHN INNES CENTER (UK). - - PIPRA(Public Intellectual Property Resource for Agriculture) - NRC, Canada and few others. Gaining strategic leadership in Technology (c) Cornell - Sathguru

34. In-licensing from Private sector and the Academic research organizations. 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. Technology transfer organizations in the public research system. Technology Transfer organizations in the private system. Product co-development with public good co-investments. Gaining strategic leadership in Technology (c) Cornell - Sathguru

35. Building Intellectual assets for growth and consolidation Technology development, sourcing and pooling for accelerated commercialization. Contract research opportunity for multiple product development – Outsourcing opportunities. Infrastructure outsourcing – Infrastructure sharing. Development pipeline with differential maturities of “time to market”. Gaining strategic leadership in Technology (c) Cornell - Sathguru

36. Technology access strategies. Sub-licensing as quick access to new traits – learning curve opportunity for emerging enterprises. Contract research for early stage enterprises for new trait development. Limited territorial licensing for regional leadership. Master licensing for global leadership. Patent/PVP & Trade marks rights for global leadership. Off-patent traits – Block buster off-patent 2013-2015 Gaining strategic leadership in Technology (c) Cornell - Sathguru

37. Acquisition of technology power through inorganic growth. Gaining strategic leadership in Technology (c) Cornell - Sathguru

38. Gaining strategic leadership in Technology (c) Cornell - Sathguru

39. Inorganic growth Acquisition of small enterprises by Industry Majors. Leveraged buy-out of larger enterprises by smaller enterprises. Merger of peers for ensuring economy of scale and geographical synergy. Gaining strategic leadership in Technology (c) Cornell - Sathguru

40. Conclusion. Consolidation in seed sector will be through strategic linkages for research, trait development and market access. Emerging market opportunities will create new alliances, breaking traditional models of strategic linkages. Center of growth drivers will move to emerging markets in Asia and other regions. Gaining strategic leadership in Technology (c) Cornell - Sathguru

41. Conclusion Enterprises with no focus on research will struggle to retain market share as markets become highly value conscious. Your ability to generate IP, access or own and manage IP will determine the speed of innovation Corporate research and technology management is an essential component of corporate planning, driving growth, innovation and sustainability. Gaining strategic leadership in Technology (c) Cornell - Sathguru