1 biotechnology research in puerto rico: the synergy between academia, government & the private...
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Biotechnology Research in Puerto Rico: The Synergy
between Academia,
Government & the Private
Sector
Lueny MorellDirector
R&D CenterUniversity of Puerto Rico at
Mayagü[email protected] International Corporate/Academic
Roundtable on Emerging Technologies
WPIMarch 19-20 2002
• Background, the drivers– Economic Development
• Jobs, High tech clusters, biotechnology
– The Competition• Singapore, Ireland, Tucson, Taiwan
• Puerto Rico– PRTEC, INDUNIV,
• ViTeC, Tech roadmap, UPRM
Facts
• According to the Biotechnology Industry Annual Report (Burril 2001)– During 2000 the biotechnology world market had a record
breaking $441 billion (>41% increase over previous year) Of the present global pharma products, 16% are of biotechnological origin or related
– This is expected to rise to 30% by 2005 & by 50% by 2010 as enabling technologies such as genomics, proteomics, cellomics, combinatorial chemistry, etc allow pharmaceuticals & biotechnology companies to focus on specific therapeutic areas and disease knowledge required in the development of protein pharmaceuticals, protective and therapeutic vaccines, advanced synthesis, bio-transformation and formulation.
Facts
• Understanding the new era of genomics-based medicine, genetically enhanced microorganisms, cloning, stem cell, biomarkers & the rest will require a
concerted efforts on the part of government, industries, universities, research organizations, the analyst community & the media
• Pockets of biotechnology are seen as very important for economic development in various regions of the world
Facts
• Puerto Rico has the largest concentration of pharmaceutical industries in the world– Result of the synergy between world-class
managers, workforce & suppliers, and preeminence as a global, tax-advantaged super-manufacturing center
• The world’s leading pharmaceuticals & biotech companies trust the successful product technology transfer, scale-up, manufacturing and quality control of their products to Puerto Rico human capital
Facts
• Puerto Rico:– has the pharma manufacturing highest location
quotient** of 9.19, followed by New Jersey with 5.08.
– Exported more pharma products to foreign countries than any of the states in the US
– Pharma exports reached $28.6 billion in Fiscal 2001, up 245% from Fiscal 1997
** a measure of the relative importance of an economic activity in a particular geographic area compared to its importance in the US
economy as a whole- between PR and states in the mainland
Puerto Rico’s Total Exports of Pharmaceutical Products in $Milllions
0
5,000
10,000
15,000
20,000
25,000
30,000
1982 1984 1986 1988 1990 1992 1994 1996 1998 2000Fiscal years ending June 30
Source: Puerto Rico Planning Board.
Pharmaceutical Industry in PR
• Represents 25% of GDP• 60% of PR exports: $28.6 Billion in 2000• Over 100,000 direct & indirect jobs• Employment growth from ’96-’01• Investment growth of $1 Billion• Nine out of 10 top world prescription drugs
are manufactured in Puerto Rico.• R&D Base Pharma Global Contribution $30B
Source: Puerto Rico Pharmaceutical Industry AssociationEmail: [email protected]
Facts
• Recent investments in Biotech R&D– Eli Lilly
• $250MM investment in large biotech manufacturing facility
• A Humalog ® recombinant insulin manufacturing plant to launch inhaled insuling in alliance with drug delivery company Alkermes, total investment of $450 million
– Amgen• $200 million to manufacture all of its products in PR
– Other companies• $400 million
Facts: Knowledge Supply Chains
ProductCreation
ProductDevelopment
MaterialSourcing
ProductAssembly
ProductDistribution
ProductUse
Material Supply ChainConcept Usable Product
Engineering Manufacturing Customer
Continuous Flow of Information and Knowledge
Creating orDiscovering
new Knowledge
Making KnowledgeTransferable
Tacit to Explicit
TransferringKnowledge
Documentationand People
ApplyingKnowledge
Knowledge Supply ChainConcept Usable Knowledge
Research Teaching User
Continuous Flow of Information and Knowledge
Source: Knowledge Supply Chains; A Next-Generation Manufacturing Project
KnowledgeGeneration
KnowledgeTransfer
KnowledgeGeneration
KnowledgeTransfer
The Knowledge Process of the Future
Academia
Industry
Source: Knowledge Supply Chains; A Next-Generation Manufacturing Project
New KnowledgeTo Satisfy Society
Competence &Ability to Learn
•Joint Research•Customer Solutions•New knowledge•Knowledge Application•Best Practices•Customer Needs•Customer Feedback
•Faculty•New Talent•Curriculum•Stakeholder Needs•Talent Specification•Industrial Teacher
•Integrated Enterprises•Integrated Product/Process Dev•Learning Organizations•Enterprises-Wide Supply Chains
New KnowledgeNew Talent
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Other countries’ strategies
Ireland
Singapore
Taiwan
States in the US
Ireland: Industrial Development
• Key Success factors for Ireland’s success in economic development (Michael McLaughlin, USA IDA Director)– Demographics
• Workforce: 1.8 million, 4.5% unemployment (2000)• 40% under age 30, 55.7% women, English speaking with foreign
language capabilities• Investment in education: 13.5% investment, 57% college
graduates in science, engineering, CS, business– Government economic policy
• Attractive & consistent taxation & financial incentives, member of EU
• Telecommunications nfrastructure investment – Social partnerships
• Agreement between government, employers, & trade unions Inward investment
Singapore: plans for a knowledge based economy
SINGAPORE
OptimizingResource
Management
Government asBusiness Facilitator
StrengtheningThe External Wing
Human &Intellectual Capital as
KeyCompetitive
Factors
LeveragingOn
ScienceTechnology
&Innovation
Manufacturing and Services as Twin Engines
BuildingWorld – Class
Companies
StrengtheningSmall & MediumLocal Enterprise
NUSNUS
Source: Dr. Casey Chan, Director of INTRO National University of Singapore
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Puerto Rico
Puerto Rico’s economy
2,361 diversified industrial plants
producing & shipping everything from apparel and pharmaceuticals to
computer components & medical devices
Puerto Rico’s economy
Highly skilledworkforce
>81% of the workforce HS
graduatesRanked 6th in the
world in higher
education enrollment
Over 8,000 S&E degrees/year
Puerto Rico
• Due to high level of competitiveness in the global market, PR is modifying its economic strategy
• Shifts towards:– a knowledge base economy – and the establishment of strategic alliances
between all sectors:• Government, private sector and academia
– Act quickly to compete with the administrative, research & venture investing programs geared to:
• big pharma & biotech startups available in competing tax advantaged manufacturing locations such as Singapore & Ireland
Synergy & Collaboration
• Synergy:–Defined:
• “to work together”• “combined cooperative action or
force”
Collaboration
Exchanging information, altering activities, sharing resources, and enhancing the capacity of one another for mutual benefit and to achieve a common purpose
Collaboration
• Willingness to share risks, rewards, & responsibilities
• All view each other as true collaborators - not what we can get from each other - not as competitors - not just for a short period in time
• Seek to enhance each other’s capacity to achieve excellence
Collaboration
Commitment to:
• Defining mutual relationships & goals• Jointly developed structure• Shared responsibility• Mutual authority & accountability for success
• Sharing of resources & rewards
Collaboration - TRUST
• Not coordination of activities• Not entered into when one needs something
from another• Not “give us and go away”• Not short term - expands in long term• Doesn’t disintegrate in economic downturns
or academic restructuring
New Structure
• Full commitment to a common mission
• Built on trust
• Comprehensive planning
• Acceptance of equals in planning, executing and accountability
• Well-defined communication on all levels
• Long-term planning, trust and commitment
• Mutual agreement on termination
Key success factors for synergy
– Rapid response
– Consider all stakeholders and their interests
– Voice of the customer
– Benchmarking
– Strategy for differentiation
– Strategy to be a low-cost competitor
Puerto Rico’s response: roles
• Government• Academia• Private Industry
Puerto Rico’s R&D Opportunities & Tax Incentives
• Income tax rate of 2-7% for all qualified corporations
• 25% credit on purchase of goods manufactured in PR
• Other Incentives– R&D
• Special $25 million annual fund• Soft loans (no interest or guarantee)• 200% special credit for R&D expenditures involved in product
or process development
– Location• By regions
– Number of employees
– Importance of industry (e.g., biotech, C&IT)
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puerto rico technoeconomic corridor
…the ultimate business paradise
p r t e cp r t e c
prtec
• A technical integration of resources from the public, private & academic sectors in order to achieve a world class business & industrial culture
• A synergistic alliance of government, industry & academia in order to stimulate the expansion of the value-added production chain.
• Established in the Western region of the Island, close to the proposed Las Americas Transshipment Port and the Rafael Hernandez Air Cargo/Tourism Hub
Government
PR
Techno
Economic
Corridor
(non-profit)
Academia PrivateSector
Agile/innovativecollaboration
Clusters
SupportiveEnvironment
Help Puerto Rico to become widely recognized as a leader/center of high-tech excellence in the world
Improve the quality of lifestyle for Puerto Rico’s citizens by helping to make it a better place for them to both live and work.
prtec activities
• Research & Development of specific technologies
• Sharing in the development of technical processes and skills
• Develop technical and support infrastructures for participating industrial & economic clusters
• Focus on the creation of new & innovative technologies to be applied on products, processes & services with commercial value
• Strengthen Puerto Rico’s competitive edge as a high-tech center through the joint efforts of government, industry & academia
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“Cluster”
association of entities with common or related objectives, needs, products, processes and/or
services
Provides economic & technological leadership
Creates synergy
Works to promote & develop its respective enterprises & bring new members
Addresses issues that may affect its members
Promotes innovation centers
Facilitates promotional efforts
High-Tech Clusters
Computer & Information Technology Cluster:Hewlett Packard: Anchor Tenant
HPCaribe Mfg.
Anchor Tenant
CM3
CM4
CM5
CM2
CM1
Security
Foodservices
Maintenance
Logistics
S1S2
S3HPTechnology
Center
OtherTenants
CM=contract manufacturers
S=strategicsuppliers
C & IT Cluster Current Members…
• Hewlett Packard (anchor)
• Sensormatic• MSL• TNT• Smart Modular
Technologies (Solectron)
• Caribe GE
• PCB Horizon• Western
Manufacturing• TechnoPlastics• NYPRO• MS&SS• PR Storage• EMS
Interested: Symmetricon, Dupont Microelectronics
Medical Devices Cluster Current Members…
• Allergan (anchor)• Edward Lifesciences• ThermoPlastics• Thermometrics• Allegiance• Surgical Medical
Products• St. Jude Medical• Jostra
Pharmaceutical Industry Cluster
• Manufacturing Sites– 40
• Marketing sites– 20
• Abbott Laboratories• Ayerst Wyeth Pharma Inc• Amgen• Aventis• Bristol Myers Squibb
(DuPont)• GlaxoSmithKline• IPR Pharmaceutical• Johnson & Johnson• Lilly Del Caribe
• Merck Sharp & Dohme• Novartis• Pfizer (WL)• Pharmacia (Searle)• Procter & Gamble
Pharmaceuticals Inc• Schering Plough• Mova• Roche
Pharmaceutical Industry Cluster Mission
“Proactively foster integration of the pharmaceutical industries & its supporting elements, developing strategies that will
enhance a competitive environment, retaining, growing existent business &
attracting new opportunities”.
VisionMake Puerto Rico
the preferred location for new
business opportunities for
Pharmaceutical Corporations
Elements Supporting Pharmaceutical Cluster
Pharmaceutical Cluster
Technical & Special Services
Professional
Associations
Materials Suppliers
Non-Profit Support Centers
Engineering &
Construction
Academia
General Services
Manufacturing Support ServicesGovernment
Academia
• Collaboration & specialization within UPR & between UPR & private universities, particularly in applied research, Ph.D. and postdoctoral programs to: – Strengthen basic infrastructure capabilities in the
biomedical, chemical, environmental & agricultural areas
– Reach a clinical level of command over key technologies (combinational chemistry, high throughput target screening) & focus on therapeutic areas & disease knowledge required in the development of protein pharmaceuticals, protective & therapeutic vaccines; and,
– Gain a command of advanced synthesis, bio-transformation & formulation, from an interdisciplinary framework, anchored in chemical engineering.
The University of Puerto Rico at Mayagüez
• Major Campus of the UPR System– Established in 1911– Land-Grant, Sea-Grant &
Space-Grant Institution– Science/Math/Engineering/
Technology Campus of the System
– Agricultural Experiment Station• 2 primary research sites: Río
Piedras & Mayagüez• 6 substations, 2000 acres
– Agricultural Extension Service 69 offices in 69 municipalities
UPR Mayagüez
• Colleges– Agricultural Sciences
– Arts & Sciences
– Business Administration
– Engineering
www.uprm.edu
UPR Mayagüez
• Student Body– Undergraduate students
• 13,000
– Graduate students• 860
• Faculty– 739 – 62% male– 57% PhD’s– 43% full professors– 64.3% tenured– 12 credit-hours academic load
• Administration– 1,800
• Colleges– Engineering, Arts & Sciences,
Business and Agricultural Sciences
• 4 PhD’s– Marine Sciences– Civil Engineering– Chemical Engineering– Computer &
Information Sciences & Engineering
0
100
200
300
400
500
600
700
Bachelor Degrees AY 1999-2000
0
20
40
60
80
100
120
140
BS Engineer ing 1999-2000
f emale 28 20 69 27 63 3 9
male 71 103 38 102 52 15 46
CE E E IE ME CHE SURV COMP E
BS degrees in Engineering AY 99-00
Master Degrees 99-00
0
50
100
150
200
Engineering Sciences Arts Business Agriculture Total
3
5
0
4
0
1
2
3
4
5
6
7
8
1998-99 1999-2000
PhDs
Sciences
Engineering
PhD’s
Research Thrust Areas
• Software, Computer Information Systems
• Telecommunications, Network Applications & Information Technology
• Remote Sensing & Image Processing
• Systems Engineering• Marine Sciences• Energy, Environmental
Sciences & Engineering• Biotechnology
– BioScience • Biophysics, Biochemistry,
Biotechnology– Material Sciences
• Surface, Pharmaceuticals, Colloids, novel materials
Activities that Support BiotecH Cluster
• Technology Roadmap• Strengthening courses
– Technology-based Entrepreneurship
• Business School• New businesses based
on high technology
• Strengthening degrees– ABET Accreditation
• Strong industry participation
– Re-focused Industrial Biotechnology Program
• Strong collaboration with industry
Activities…
• New Degrees– BS in Software Engineering
– PhD’s in collaboration with industry & government
• Biotechnology• Applied Chemistry• Computer & Information
Science & Engineering• Water resources &
environmental engineering
UPRM Biotechnology Research Centers
• Tropical Environmental Biotechnology Center
• Tropical Marine Biotechnology Center
• Center for Protein Structure Function and Dynamics
• Bioinformatics Center
• Center for Tropical Agriculture Biotechnology
Cluster Initiatives: INDUNIV
• R&D Industry-University Consortium – Materials Characterization Center – Center for Pharmaceutical Processing Research– Research Grants ($2.5M) & Education
• Under Development:– Center of Advanced Packaging Technologies– Biotech Center– Clinical Research
• Future Development:– Drug Delivery System– Technology Transfer Center
Puerto Rico’s Competitive Initiatives
• Permitting Process
• Leverage Supplier Quality
• Energy Reliability/Cost
• Vocational/Technical Education
• Transportation Costs
• Labor Laws
May 21 – 24, 2002Caribe Hilton HotelSan Juan, Puerto Rico
website: www.induniv.org
Concluding Remarks