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This presentation describes the Vinnväxt Program in Sweden, which is designed to promote regional competitiveness. It presents a case study of one biotech cluster initiative, Uppsala BIO - the Life Science Initiative.
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Improving Competitiveness-----
A study of the Uppsala Biotech Cluster and Uppsala BIO – the Life Science Initiative
Dr. Robin TeiglandStockholm School of Economics
June 2008
– Overview of the Uppsala Biotech Cluster– Presentation of Uppsala BIO– Can Uppsala BIO make a difference?
Sweden’s leading life science region
Source: VINNOVA, 2007
Sweden Uppsala
Life Science subsectors
N=4 400
N=36 500
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 for 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
•World-class research attracts industry•Close academia/industry collaboration creates success
But significant challenges loom on the horizon
1. Difficulty in achieving commercial growth
• How to secure venture capital for growing companies, ensure profitability, and get them to stay in Uppsala
2. Declining long-term supply of competence
• How to awaken young persons’ interest in science and secure management skills
3. Unstable pipeline of new ideas
• How to establish research fields plus technology transfer
4. Relatively dated infrastructure
• How to secure transition from university town to a modern international city
• 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
www.uppsalabio.com
Uppsala BIO – the life science initiative
County Admin. 2 people
Swedish Univ.of Agriculture
2 people
Chamber of Comm. 2 people
County Council2 people
Uppsala Municipality
2 people
STUNSCEO
Vinnova
Swedish Univof Agric 2 people
UppsalaMunicipality
1 person
Industry4 people
Uppsala BIOSteering
Committee
VisibilityInnovation CompetenceUppsala BIO-X
Uppsala Univ 2 people
UppsalaUniversity
CoordinatingCommittee10 people
CIND3 people
UppsalaUniversity2 people
Uppsala BIO Management3 people
Uppsala BIO - A complex projectorganization
UniversityHospital1 person
Scientific
Advisory Board
Uppsala BIO - owners
• 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 universitet Holding AB • Åmic AB
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
GR
OW
TH
? $ BusinessBIO-X
Scouting
• Academia• Industry
Competence Chain
UniversitiesSchools EntrepreneursInnovators Company Employees
Val
ue
Support forExisting Companies• Further Education
• Regional Infrastructure• Partnering
Marketing of Biotech in UppsalaRed = Innovation SystemGreen = Uppsala BIO-XBlue = CompetenceBlack = Marketing
• Seminar Series• Scientific Conference
Innovation System• Incubator• Business Lab• Entrepreneurs Program
From idea to sustainable growth?
Basic research Publication
Explorativeresearch
Product development
Academia
Industry
Uppsala BIO-X
1. Market-oriented research – Uppsala BIO-X
•Funds cross-disciplinary, cutting-edge research in life science•Bridges first research commercialization gap•Offers new opportunities to industry•Engages international Scientific Advisory Board – industry & academia•Brings industrial mindset into an academic setting
RESOURCE GAPRESOURCE GAP
Some results from Uppsala BIO-X
• 2 companies – 9 employees– Turnover SEK 11 mln
(EUR 1.2 mln)
• 5 projects• 22 applications• > 20 senior researchers involved
• Clear change in mind set
2. 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
3. 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
4. New resources through marketing
• Ensures international perspective
• Emphasizes region’s commercial competencies
• Promotes cooperation with Stockholm-Uppsala Bioregion
• Promotes networking through BIO-Pubs and seminars
Develops local feeling for biotechnology
Uppsala
Strängnäs
Flemingsberg
SolnaStockholm City
Södertälje
Arlanda Airport
MISSION•Promote the life science sector in the region•Position and market the Stockholm-Uppsala region as a leading life science region
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 - The Swedish Agency for Innovation Systems– Universities– Local and regional development bodies– Industry
Results to date for Uppsala BIO
•Uppsala BIO-X– 5 projects– 22 new applications– > 20 senior researchers– 2 companies kick-started– Industrial drive– Clear change in mind-set
• Marketing– Uppsala well profiled– Internationally recognized– Stockholm-Uppsala
Bioregion founded
• Innovation support– Coordinated and coherent
system– >15 new companies– C:a 30 new jobs– ROPI 170 %
• Long-term competence– Project leader coaching
program– Representation on
university program boards – Representation in County
labor board biotech council
– Science and magic
Uppsala’s Life Science industrydevelopment 2003 - 2006
• Number of companies – 174 (+ 22%)
• Private employees– 4 320 (+ 6%)
• Turnover*– SEK 13.2 bln (+ 38%)
* Only companies with their headquarters in Uppsala
Interactive research with CIND
• CiND participants– Anders Malmberg & Per Lundequist, Uppsala Univ.– Robin Teigland, Stockholm School of Economics– Daniel Hallencreutz, Intersecta
• Main activities1. Participate in Uppsala BIO’s process2. Support Uppsala BIO with specific tasks3. Measure cluster development and UB’s impact through
surveys4. Support spin-off activities, e.g., cooperation with SSE
MBA, UU masters students
Critically evaluate Uppsala BIO and develop interactive research as a method and cluster related theories
34
Development of the Uppsala Biotech Cluster
Local rivalry
Demandconditions
Factorconditions
Relatedindustries
Measuring and evaluating through biannual surveys (2004, 2006, 2008)
Impact of Uppsala BIO on the Cluster’s
development
Results from the Uppsala Biotech Cluster Survey in 2006
85
144
41
13
0 25 50 75 100 125 150
Government
Academia
Business
IFC & Other*
Total number of respondents
283
* IFC is institute for collaboration, e.g., Uppsala BIO, STUNS, etc., and consists of all three sectors. These respondents are not included in the survey results presented here.
Uppsala fulfills the conditions for cluster competitiveness to a medium degree
• Medium fulfillment of conditions for cluster competitiveness*– Relative cluster weaknesses
• Relative poor availability of local and foreign capital and foreign skills• Low local rivalry despite low barriers to entry• Ineffective government organizations/policies furthering cluster
competitiveness– Relative cluster strengths
• Strong local supply of skills• Local demand and supply seen as moderate strengths• High level of innovativeness in ”Discovery methods/tools” and in
”Diagnostics”
• Tightly knit regional innovation system• Moderate to high degree of labor mobility and cross-disciplinary research • Moderate to high degree of formal and informal cooperation between actors• Moderate to high degree of openness, information flow, and reciprocity
* From Diamond Model, Porter 1990
37
Perceptions of competitiveness differ significantly among cluster actors
Teigland & Lindqvist 2007
38
Development of the Uppsala Biotech Cluster
Local rivalry
Demandconditions
Factorconditions
Relatedindustries
Measuring and evaluating through biannual surveys (2004, 2006, 2008)
Impact of Uppsala BIO on the Cluster’s
development
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
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
resources
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
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
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
However, the relative value of activities varies greatly by sector and involvement in UB
Academia Business 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
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.
Selected comment
“Promoting inflow of venture capital is by far the most important activity for the long term survival of a cluster like Uppsala. Without money no new
companies can emerge, it is that simple!! All other activities are just frosting on the cake!!”
Incorporated in Uppsala BIO’s action plan
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 process leader
6. Plan for and create short-term wins
7. Ensure commitment and empower others
Uppsala BIO: Elements of a successful change effort*
Government•To improve public services
•Greater public good•Electorate
Business•To realize profits
•Market opportunities•Shareholders
University•“To publish or perish”•Quest for knowledge
•Global academic community
Despite the underlying challenging situation
Uppsala BIO•Develop goals
•Secure and allocate resources•Conduct tasks
50
“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
51
Government is quite distant
from all commercial
actors
Facilitating interaction
Can Uppsala BIO make a difference?
• Government in general more positive towards UB while industry much less so
• Difficult challenge due to stakeholders from different sectors and their extremely diverse interests
• Conducting project as an organizational change effort leads to initial successful results
• But long-term transformation (changes in attitudes and behaviors) takes time and is difficult to measure (focus of 2008 survey)
53
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?
Interested in learning more?
• Robin Teigland, Stockholm School of Economics– [email protected]– 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., 2006.
– Seeing eye-to-eye: How do public and private sector views of a biotech cluster and its cluster initiative differ? European Planning Studies (forthcoming).
– 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.
55
Appendix
• Participation in UB activities by respondents involved directly or indirectly through their organization in UB
• Participation in UB activities by respondents whose organization is not involved in UB
• Value of UB activities by respondents involved directly or indirectly through their organization in UB
• Value of UB activities by respondents whose organization is not involved in UB
56
Participation in UB activities by respondents involved directly or indirectly through their organization in UB
Never heard of Very frequently
57
Participation in UB activities by respondents whose organization is not involved in UB
N=60
Never heard of Very frequently
58
Value of UB activities by respondents involved directly or indirectly through their organization in UB
N=99
Extremely valuable
Extremely unvaluable
59
Value of UB activities by respondents whose organization is not involved in UB
Extremely unvaluable
Extremely valuable
N=49
Today’s presentation
• Cluster background and theory
• Uppsala BIO – the Life Science Initiative
• The Cluster Observatory
• Looking forward
Today’s presentation
• Cluster background and theory
• Uppsala BIO – the Life Science Initiative
• The Cluster Observatory
• Looking forward
Netpact project
Project consortium funded by European Commission, DG Jan Maier, Luc Strijbosch, Jackie Thun at Avedas AG Ed Noyons and Clara Clarero at CWTS Leiden University Harald Katzmair and Christian Gulas at FAS.research Robin Teigland and Andrew Schenkel at SSE
Purpose: To assess impact of FP6 on European competitiveness1. To investigate impact on European R&D networks
1. To map RTD networks of collaboration in five selected thematic areas
2. To investigate impact on initiating and facilitating networking activities
3. To investigate embeddedness of major actors in European networks and in the global context of RTD and innovation
4. To determine impact of EU research policy on cross-sector collaboration
– To investigate impact on performance of research and industry actors– To determine rationale for engaging in research collaboration from
actor’s viewpoint
Building RTD networks across Europe
