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Biotechnology
Research in
Puerto Rico:
The Synergy
between
Academia,
Government &
the Private
Sector
Lueny Morell
Director
R&D Center
University of Puerto Rico at
Mayagüez
[email protected]
Second International
Corporate/Academic
Roundtable on Emerging
Technologies
WPI
March 19-20 2002
1
• 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, biotransformation and formulation.
Facts
• Understanding the new era of genomicsbased 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 supermanufacturing 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
30,000
25,000
20,000
15,000
10,000
5,000
0
1982
1984
So urce: Puerto Rico Plann ing Board .
1986
1988
1990
1992
1994
Fiscal years ending June 30
1996
1998
2000
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 Association
Email: [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
Material Supply Chain
Concept
Product
Creation
Usable Product
Product
Development
Material
Sourcing
Product
Assembly
Product
Distribution
Product
Use
Continuous Flow of Information and Knowledge
Engineering
Manufacturing
Customer
Knowledge Supply Chain
Concept
Creating or
Discovering
new Knowledge
Usable Knowledge
Making Knowledge
Transferable
Transferring
Knowledge
Tacit to Explicit
Documentation
and People
Applying
Knowledge
Continuous Flow of Information and Knowledge
Research
Teaching
Source: Knowledge Supply Chains; A Next-Generation Manufacturing Project
User
The Knowledge Process of the Future
New Knowledge
New Talent
Knowledge
Generation
Knowledge
Transfer
Academia
•Joint Research
•Customer Solutions
•New knowledge
•Knowledge Application
•Best Practices
•Customer Needs
•Customer Feedback
New Knowledge
To Satisfy Society
Competence &
Ability to Learn
Industry
Knowledge
Generation
Knowledge
Transfer
•Integrated Enterprises
•Integrated Product/Process Dev
•Learning Organizations
•Enterprises-Wide Supply Chains
Source: Knowledge Supply Chains; A Next-Generation Manufacturing Project
•Faculty
•New Talent
•Curriculum
•Stakeholder Needs
•Talent Specification
•Industrial Teacher
Other countries’ strategies
Ireland
Singapore
Taiwan
States in the US
12
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
Government as
Business Facilitator
Strengthening
The External Wing
Manufacturing and Services
as Twin Engines
Building
World – Class
Companies
Human &
Leveraging
Intellectual
On
Capital as
Science
Key
Technology
Competitive NUS
&
Factors
Innovation
Strengthening
Small & Medium
Local Enterprise
Optimizing
Resource
Management
Source: Dr. Casey Chan, Director of INTRO National University of Singapore
Puerto Rico
15
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 skilled
workforce
>81% of the
workforce HS
graduates
Ranked 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)
puerto rico technoeconomic corridor
p r t ec
…the ultimate business paradise
29
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
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
Government
work.
Clusters
Agile/innovative
collaboration
PR
Supportive
Environment
Techno
Economic
Corridor
(non-profit)
Academia
Private
Sector
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
High-Tech Clusters
“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
33
Computer & Information Technology
Cluster:
Hewlett Packard: Anchor Tenant
HP
Technology
Center
S3
CM2
Security
CM=contract
manufacturers
CM4
S=strategic
CM3
suppliers
Maintenance
HP
Caribe Mfg.
Anchor Tenant
CM1
S1
Food
services
S2
CM5
Other
Tenants
Logistics
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
•
•
•
•
•
Merck Sharp & Dohme
Novartis
Pfizer (WL)
Pharmacia (Searle)
Procter & Gamble
Pharmaceuticals Inc
• Schering Plough
• Mova
• Roche
•
•
•
•
•
•
•
•
•
Abbott Laboratories
Ayerst Wyeth Pharma Inc
Amgen
Aventis
Bristol Myers Squibb
(DuPont)
GlaxoSmithKline
IPR Pharmaceutical
Johnson & Johnson
Lilly Del Caribe
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”.
Vision
Make Puerto Rico
the preferred
location for new
business
opportunities for
Pharmaceutical
Corporations
Elements Supporting
Pharmaceutical Cluster
Materials
Suppliers
Technical &
Special
Services
Government
Manufacturing Support
Services
General Services
Pharmaceutical Cluster
Professional
Associations
Academia
Engineering &
Construction
Non-Profit
Support Centers
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, biotransformation & 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/Tech
nology 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
Bachelor Degrees AY 1999-2000
700
600
500
400
300
200
100
0
En
Sc
Ar
ts
gi
ien
ne
ce
er
s
in
g
Bu
s in
Ag
ri c
ul
es
tu
s
re
BS degrees in Engineering
AY 99-00
B S E ngi ne e r i ng
1 9 9 9 - 2 0 0 0
140
120
100
80
60
40
20
0
CE
EE
IE
ME
f emal e
28
20
69
27
mal e
71
103
38
102
CHE
SU R V
C OM P E
63
3
9
52
15
46
Master Degrees 99-00
200
150
100
50
0
Engineering
Sciences
Arts
Business
Agriculture
Total
PhDs
8
7
6
5
5
Sciences
4
Engineering
3
2
3
1
4
0
0
1998-99
1999-2000
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, 2002
Caribe Hilton Hotel
San Juan, Puerto Rico
website: www.induniv.org
Concluding Remarks