uppsala bio - an agent of change
DESCRIPTION
A presentation on the Uppsala biotech cluster and its cluster organization - Uppsala BIO. In this presentation, Uppsala BIO is seen as an agent of change in terms of its strategy and efforts to improve the competitiveness of the Uppsala biotech cluster.TRANSCRIPT
Energizing Change through Network Leadership-----
Uppsala BIO – The Life Science Initiative
Dr. Robin TeiglandStockholm School of Economics, CiND
Uppsala – One of the world’s most biotech-concentrated cities?
•Number of companies •174 (+ 22% since 2003)
•Private employees•4 320 (+ 6% since 2003)
•Turnover of companies with HQ in Uppsala•SEK 13.2 bln (+ 38% since 2003)
1) Tools for diagnostics2) Tools for effective
pharmaceutical development & production
Areas of Expertise
www.uppsalabio.com
IgE
Phadia230 MUSD
Dextran
Pharmacia Biotech Amersham Biosciences
GE Healthcare825 MUSD
Solvay Pharma(NeoPharma), 3 MUSD
Electrophoresis Function of Hyaluronic acid
2000
Duodopa
19601940
Personal Chemistry
Microwave synthesis
Pyrosequencing
Pyrosequencing
SPR Biosensors
Biacore (Part of GE Healthcare)
Q-Med 147 MUSD
Biotage 33 MUSD
1980
Turnover (2006)
AMO Uppsala77 MUSD
Heparin
Fragmin™
Padlock Probes
Olink1,5 MUSD
Neuropeptides effect on ocular blood flow
Xalatan™1,3 BUSD
An impressive record of research turned into innovations and growth
Research
But significant challenges in an increasingly competitive world
1. Difficulty in achieving commercial growth
• How to secure funding for growing companies, ensure profitability, and get them to stay in Uppsala?
2. Declining long-term supply of competence
1. How to awaken young people’s interest in science and to secure management skills?
3. Unstable pipeline of new ideas
• How to establish research fields plus technology transfer?
• Relatively dated infrastructure
1. How to secure transition from university town to a modern international city?
• Purpose: To support the development of research results into prototypes, products, and sustainable companies
Vision: To establish the Uppsala-Stockholm region as one of the world’s five leading biotechnology regions
A local initiative from life science industry, universities, and regional development bodies
Uppsala BIO – the life science initiative
Uppsala BIO and Uppsala University
• CiND - Centre for Research on Innovation and Industrial Dynamics
• Main activities1. Participate in and support Uppsala BIO’s process2. Evaluate cluster development and UB’s impact through
surveys 2004, 2006, 20083. Support spin-off activities, e.g., cooperation with
universities at the masters level
Critically evaluate Uppsala BIO and develop cluster related theories
Looking at the Uppsala Biotech Cluster as a network of interacting actors
Government is quite distant
from all commercial
actors
Government
Academic/research
Biotechcompanies
Servicecompanies Finance
companies
Institutes for collaboration
2004 survey
“I have been to several meetings organized by Uppsala BIO, but as a university
professor, I feel really out of place among all those young businessmen in suits. As a
natural scientist, who am I supposed to speak with?”
Survey 2006 respondent comment
Building bridges between the different worlds
What is Uppsala BIO really working to achieve?
Consulting
Company
Licensing
Research
Trade sale
Start-up
Commercialization path
Changes in attitudes and behaviors –“Weaving competitiveness into everyday life”
Collaboration between academia and industry for competitive commercialization
Adapted from Kotter 1996
2. Build a powerful guiding coalition
1. Establish a sense of urgency
3. Create and communicate a compelling vision
8. Consolidate improvements and produce more change
4. Develop an effective activity plan
5. Choose a change specialist as a project leader
6. Ensure commitment and empower others
7. Plan for and create short-term wins
Uppsala BIO: An agent of change?
Eight steps to successful change (from Business Administration)
1. Establish a sense of urgency
Forces for
change
Forces for
stability
The status quo
Kotter 1996, Burnes 2004
“Well over 50% of organizations fail in this phase.”
UB created a sense of urgency through the decline of Pharmacia
• Until mid-1990s – Pharmacia one of largest employers outside the public
sector - over 4000 employees
• But after mid-1990s– Pharmacia sold off and merged divisions with foreign
companies so employees rapidly declined
• Sense of urgency:– Declining regional biotech competence– Companies leaving the region– Decreasing number of jobs
Challenge: Individuals experience sense of urgency at different levels
Completely disagree
Completely agree
The Stockholm-Uppsala region is
one of the world’s five leading life
science regions.
Neutral
Average
2008 survey
2. Build a powerful guiding coalition
• Shared understanding & right attitude
– Share vision– Committed to vision
• Access to necessary resources across sectors
– Formal position power – Reputation– Expertise – Leadership – Strong informal networks
But look out for people
with big egos or “snakes”
Beer 2002, Kotter 1996
The team that will lead the
change
County Admin.
Swedish Univ.of Agriculture
Chamber of Comm.
County Council Uppsala Municipality
STUNSCEO
Vinnova
Swedish Univof Agric
UppsalaMunicipality
Industry
Uppsala BIOSteering
Committee
VisibilityInnovation CompetenceUppsala BIO-X
Uppsala Univ
UppsalaUniversity
CoordinatingCommittee
CIND
UppsalaUniversity
Uppsala BIO Management
Uppsala BIO - A complex projectorganization
UniversityHospital
Scientific Advisory
Board
Uppsala BIO ”Owners” - Financers• ALMI Företagspartner Uppsala• AlphaHelix AB• Advanced Medical Optics AB• AroCell AB• Biotage AB• Connect Uppsala• Denator AB• Doxa AB• GE Healthcare Bio Sciences AB• Chamber of Commerce• Innovationsbron i Uppsala• MikroKemi AB• Olink AB• Orexo AB• Pharma Consulting Group AB
• Phadia AB• Q-Med AB• Regional Development Council• Semcon AB• Swedish University of Agricultural
Sciences• Solvay Pharma AB• Statisticon AB• Svanova Biotech AB• City of Uppsala • Uppsala University• Uppsala University Hospital• Uppsala University Holding AB • Åmic AB
Industry, academic, and government sectors all represented!
Challenge: Ensure diversity across sectors and organizational size
Teigland 2003
Avoid a closed “old boys network”
3. Create and communicate a compelling vision
• How?– Use several channels
regularly• What?
– Keep it simple– Use success stories
• Who?– Identify key opinion
leaders
But listen as well!!Adapted from Kotter 1996
• Purpose: To support the development of research results into prototypes, products, and sustainable companies
Vision: To establish the Uppsala-Stockholm region as one of the world’s five leading biotechnology regions
A local initiative from life science industry, universities, and regional development bodies
Uppsala BIO – the life science initiative
Communication strategy
It’s not only about telling the world what happens here in the region. Communication is also about creating arenas for meetings and networking. Informal BIO-Pubs, partnering conferences, and newsletters are just some of the channels to meet with Uppsala’s biotechnology.
Challenge: Uppsala BIO’s vision appears to be clear, but the business sector is less sure.
5,8
5,3
5,4
5,1
4,9
4,7
1 7
There is anexplicitly
formulatedvision for
Uppsala BIO
The leaders ofUppsala BIOhave clearlystated the
objectives thatthey are trying
to meet
Government
Academia
Business
Strongly disagree
Strongly agreeNeutral
2006 survey
4. Develop an effective activity plan
• Create the vision– To direct and coordinate the
change effort
• Develop an effective activity plan– To engage people through
participation– To find their “passion”– To overcome forces for stability
Adapted from Kotter 1996
The Action Plan
Uppsala BIO:
A facilitator, notan operator !
1. Support market-oriented research
2. Provide innovation support
3. Ensure long-term supply of competence
4. Attract new resources through marketing
All Uppsala BIO activities are seen as valuable
5,2
5,2
5,2
5,1
5,0
5,0
5,0
4,7
1 7
Advice on patent/IP matters
Bio-Pubs
External visitors
UIC programs
Uppsala BIO newsletter
Info on Uppsala BIO-X projects
Uppsala BIO webpage
Career Days
Extremely unvaluable
Extremely valuableNeutral
2006 survey
Challenge: Relative value of activities varies greatly by sector and by involvement in UB
Academia Industry Government
ActivityPers inv
Inv orgUninv org
Pers inv
Inv orgUninv org
Pers inv Inv orgUninv org
Bio-Pubs – ++ +++ ++ –
Uppsala BIO website + +++ – + ++
Uppsala BIO newsletter – ++ +++ +
BIO-X projects +++ ++ ++ –
UIC programs + ++ +++ +++ ++ –
Advice on patent/IP ++ +++ + ++ ++ +++
Career Days – ++ – – – +
External visitors’ activities
++ + ++ +++ ++
+++ 1st valuable, ++ 2nd valuable, + 3rd valuable, – Least valuableSome columns have several activities with same value ranking due to equal values
2006 survey
Government•To improve public services
Industry•To make profits
University•To advance research
Challenge: Different underlying objectives
Uppsala BIO
5. Choose a change specialist as project leader
A networked “host” and “politician”• Understands, respects, and balances all stakeholder interests
– Experience in different sectors
• Good communicator and contact maker– Experience in change
University IndustryUppsala BIO
Project Leader
Academia Challenge: Skills required change over time
6. Ensure commitment and empower others to act on the vision
Do people have the
resources to act?Do people have
the appropriate skills to act?
Do the structures & systems align with the vision?
Adapted from Kotter 1996
Challenge: Uppsala BIO – A modest budget
• Yearly budget of around SEK 20 million– SEK 14 million SEK in cash– SEK 6 million in kind
• Financers– VINNOVA-Swedish Agency for Innovation Systems– Universities– Local and regional development bodies– Industry
Innovation support – together with Uppsala Innovation Centre
Conducts scouting for spin-offs at universities and industry
Supports incubator focused on commercialization, financing, and future viability
Provides access to broad external network of business advisors and financers
Supports entrepreneurship and alumni programs
Business Start
Business Start
Business Lab
Business Lab
Business AcceleratorBusiness
Accelerator AlumniAlumni GrowthGrowth
www.uic.se
Long-term supply of competence
Offers coaching and leadership programs for life science management
Encourages frequent contacts between academia and industry
Helps tailor university courses to labor market needs
Matches job seeking academics to jobs
Awakens future interests in science
7. Plan for and create short-term wins
1. Create obtainable
targets
2. Encourage & convince people that
targets can be reached
3. Recognize and reward “winners”
Communicatethe wins
Adapted from Kotter 1996
Basic research Publication
Explorativeresearch
Product development
Academia
Industry
Uppsala BIO-X fills the research gap - approximately 50% of UB’s resources
•Funds cross-disciplinary, cutting-edge research in life science•Offers new opportunities to industry•Engages international Scientific Advisory Board – industry & academia•Brings industrial mindset into an academic setting
RESOURCE GAPRESOURCE GAP
Uppsala BIO-X
Some results from Uppsala BIO-X
• 2 companies (Olink & ModPro)– 20 employees– Turnover SEK 18 mln
• 3 current projects• 58 total applications• > 20 senior researchers involved to date
• Clear change in mind set
Government•To improve public services
Industry•To make profits
University•To advance research
Challenge: Different underlying objectives
Uppsala BIO
8.Consolidate improvements and produce more change
Change Project 1
Change Project 2
Change Project 3
Time
Scope of change
Adapted from Kotter 1996
Results to date for Uppsala BIO
•Uppsala BIO-X– 5 projects– 58 new applications– > 20 senior researchers– 2 companies kick-started– Industrial drive– Clear change in mind-set
• Marketing– Uppsala well profiled– Internationally recognized– Stockholm-Uppsala Life
Science founded
• Innovation support– Coordinated and coherent
system– >15 new companies– C:a 30 new jobs– 2/3 from university research– ROPI 170 %
• Long-term competence– Project leader coaching
program– Representation on
university program boards – Representation in county
labor board biotech council
– Science and magic
Creation of greater regional initiative
Stockholm-Uppsala Life Science shall promote the development of the life-science sector in the region,
and promote the region itself on the international arena to attract new resources and investment.
(www.suls.se)
Development of the Uppsala Biotech Cluster
Local rivalry
Demandconditions
Factorconditions
Relatedindustries
Challenge: How to evaluate progress?
Impact of Uppsala BIO on the Cluster’s
development
Continuous external
evaluation
Adapted from Kotter 1996
How well does your development initiative fulfill the steps of successful change?
2. Build a powerful guiding coalition
1. Establish a sense of urgency
3. Create and communicate a compelling vision
8. Consolidate improvements and produce more change
4. Develop an effective activity plan
5. Choose a change specialist as a process leader
6. Ensure commitment and empower others
7. Plan for and create short-term wins
Leadership and learning are indispensable to each
other.”
- John F. Kennedy
Leadership, teaching, and learning are inextricably
interlinked.
- Jack Welch
Leading and learning
Interested in learning more?
• Robin Teigland, Stockholm School of Economics, CiND– [email protected], www.knowledgenetworking.org– www.slideshare.net/eteigland
• Madeleine Neil, Uppsala BIO, Communications– [email protected]
• Publications and reports on Uppsala BIO and the Uppsala Biotech Cluster
– Uppsala BIO – the Life Science Initiative: Experiences of and Reflections on Starting a Regional Competitiveness Initiative. In R. MacGregor (Ed.) Small Business Clustering Technologies: Applications in Marketing, Management, IT and Economics, London: Idea Group Inc., 2007.
– Seeing eye-to-eye: How do public and private sector views of a biotech cluster and its cluster initiative differ? European Planning Studies, 2007.
– What is Local and What is Global in Biotech Innovation: The Case of the Biotech Cluster in Uppsala, Sweden. Paper presented at DRUID, 2005.
– Investigating the Uppsala Biotech Cluster. Research Paper 2004:1, Uppsala University, CIND.
Appendix
Most see Uppsala BIO as a good use of resources while business is less positive
Big waste of
resources
In general, what is your opinion of
Uppsala BIO?
Average
Neutral Excellent use of
resources2006 survey
Strong primary level impact, yet weak secondary level impact
Strongly disagree
Strongly agree
Neutral
In general, during the past
two years Uppsala BIO
has contributed to an increase
in ...
5,2
5,0
4,8
4,7
4,4
4,4
4,3
4,0
3,9
3,8
3,6
3,5
3,3
3,2
1 7
National visibility
Organizational collaboration
Cross-disciplinary research
International visibility
Relevant competence
Ability to start new company
Research commercialization
Patent applications
VC and company investment
New companies in Uppsala
Skilled labor to Uppsala
New jobs in Uppsala
Exit of jobs and companies from Uppsala
Average salary
UB’sprimary
objectives
Secondary effects
2006 survey
However, Government rates UB as having more impact than Academia and Business
In general, during the past
two years Uppsala BIO
has contributed to an increase
in ...
Strongly disagree
Strongly agree
Neutral
2006 survey
Participation in UB activities by respondents involved directly or indirectly through their organization in UB
Never heard of Very frequently
2006 survey
Participation in UB activities by respondents whose organization is not involved in UB
N=60
Never heard of Very frequently
2006 survey
55
Value of UB activities by respondents involved directly or indirectly through their organization in UB
N=99
Extremely valuable
Extremely unvaluable
2006 survey
Value of UB activities by respondents whose organization is not involved in UB
Extremely unvaluable
Extremely valuable
N=49
2006 survey
Respondents view insufficient financing and potential company exits as biggest threats
What are the biggest threats to Uppsala Biotech Cluster within the
next 5 years?(% responses)
Total responses = 241
24%
16%
11%
9%
8%
7%
7%
7%
5%
6%
0% 5% 10% 15% 20% 25% 30%
Insufficient financing
Exit of existing companies
Lack of competence
Ineffective government
External competition
Attitudes
Lack of new ideas and commercialization
Poor economic situationLack of collaboration with Stockholm and
Medicon Valley
Other, e.g., visibility, infrastructure, etc.
2006 survey
63
Questions to ponder…..
• What is competitiveness?– Real figures, statistics vs. perceptions by actors
• How do perceptions by outside actors of a cluster’s competitiveness differ?– Industry, government, academia
• How do perceptions by outside actors of a cluster’s competitiveness affect a cluster’s attractiveness, e.g., labor, investments, new firms?– Capital is global…so what is important when companies
make decisions regarding in which locations to invest - real figures or perceptions of competitiveness?