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ROUGH ROAD TO MARKET power point Banji

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Published on September 3, 2007

Author: Naples

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ROUGH ROAD TO MARKET: BARRIERS TO BIOTECHNOLOGY INNOVATION COMMERCIALIZATION IN AFRICA:  ROUGH ROAD TO MARKET: BARRIERS TO BIOTECHNOLOGY INNOVATION COMMERCIALIZATION IN AFRICA Banji Oyelaran-Oyeyinka UNU-INTECH Premise of Study:  Premise of Study In Africa, research in universities and PRIs are controlled and funded largely by governments. In what ways have institutions shaped the observed path of scientific research to the market? Why has there been so few successes in taking invention to the market in Africa? Hypothesis: that institutionally determined policy processes impact on the ways inventive activities move or not move from the laboratory to the market. Case Study: Biopharmaceutical system Features of Biotech that demand Changes:  Features of Biotech that demand Changes Four broad features of biotechnology that create discontinuity with current scientific culture of developing countries. First, biotechnology has roots deep in basic science. Second, biotechnology is characterized by a strong interdisciplinary content. Third, new institutions such as venture capital and spin-off companies that cluster around strong research-based universities are rare in developing economies. Features :  Features The process is shaped by context-based informal norms and practices. These formal and informal institutions are often reinforced over the long term by unless disrupted by a major trigger to change. They include attitudes to intellectual property such as the propensity to or not patent; the influence of academic employment rules that engender little incentive to pursue commercial ventures Sources of Knowledge:  Sources of Knowledge Sources of knowledge within the national system of innovation are industrial firms, private laboratories, universities and public research institutions (PRIs). Traditionally all of them have been sources of commercial technologies. However, universities and public laboratories are notable sources of inventive activities for knowledge-based new technologies such as biotechnology. Universities in Africa tend to be main centres of knowledge creation. Private firms involvement is still little. Inventive channels :  Inventive channels Channels for translating research efforts to innovative products and processes: exchange of information between actors and organizations, technical assistance, cooperative research, licensing Intellectual property (IP), spin-off of companies from research Hiring of skilled personnel Determinants of Inventive Channels:  Determinants of Inventive Channels The level of technology and the quality of scientific and technological infrastructure The nature of institutions (the scientific culture; informal habits, labour market laws etc. These factors foster or hinder the translation of research to innovation They mark the difference between developing and developed economies SI. Institutional Barriers:  Institutional Barriers Institutions are expected to do three things: deal with uncertainty, resolve conflicts and provide incentives. However, institutions (laws, habits and practices), due in part to historical reasons could constitute systemic barriers to the process of innovation. Three examples: Institutions of the labour market e.g. laws for regulating terms of employment of university lecturers (who owns IP?). Individual scientists have to fund patent process. Institutions supporting organization for commercializing inventions (e.g technology transfer centres) Institutions fostering collaborative learning. Institutions for Translating Invention to Innovation: factors :  Institutions for Translating Invention to Innovation: factors The nature of knowledge generation and transfer between universities and PRIs and industry is complex, highly systemic and context-specific. Wide gap between the motivation, scope and purpose of academic research and industrial research and production. This restricts the scope for policy incentive. firms seek external collaboration for purposes of learning because autonomous efforts are costly, and innovation outcomes are uncertain. Findings: Stages of Commercialization:  Findings: Stages of Commercialization Screening/Secon screening: 40% Product/Process development: 26 % Clinical/Field Trials: 23% Current Production:13% Total :104 (100%). Almost all univs and PRIs inventive activities face institutional barriers beyond labs. Findings: How Institutions constrain:  Findings: How Institutions constrain Institutional constraints that lead to poor funding and subsequent lack of facilities for biotechnology-based research Lack of institutional infrastructure to conclude meaningful partnerships with holders of traditional medicinal knowledge and to contract drug development Lack of regulatory mechanisms to test for efficacy and safety of traditional preparations. Institutional rigidities that undermine interaction between universities, public research institutes and agencies that possess the mandate to commercialize drugs based on traditional knowledge, such as NIPRID. How Institutions Constrain:  How Institutions Constrain Lack of private sector interest in drug development: presently, most of universites and PRIs research (90%) focuses on screening and secondary screening, with only 10% focus on product development activities. Large pharmaceutical firms in Nigeria show little interest and new technology-based firms are yet to fill this gap. Lack of governmental aid in conducting research: presently, 90% of their research funds are from international sources, with only 10% from the Nigerian government. The grant money is used to purchase laboratory equipment and chemical agents that are required for conducting research. Lack of foreign research collaborations that may help scientific and technological capacity building Collaboration:  Collaboration Collaboration has been limited by three main factors, namely: The inability of scientists to move their work beyond the individual organizations; The absence of formal institutions supporting collaboration, and; Poor incentive to motivate scientists. On Translating Inventions:  On Translating Inventions In sum, failure to commercialize results from institutional rigidity much of which relates to the ways traditional PRIs and universities are set up. Two issues that recurred in our interviews: who initiate the process (the PRI or a firm/entrepreneur?); and What form of formal or informal contract guides the process? Common types of formal contract :academic entrepreneurship, and spin-off companies from public research not present. Institutions matter:  Institutions matter Our 'obvious' conclusion is that institution matter but how do we go beyond this? Effort to devise missing or weak ones at 3 institutional levels to reduce three types of barriers: Transactional barriers Collaborative Learning barriers Transformation barriers END:  END Thank You

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