INNOVATION ECOSYSTEMS AND BIOTECHNOLOGY INDUSTRY: CASE ANALYSIS

Abstract

Biotechnology initiatives, whatever they may be (government research agency, public-private company or private enterprise), need all kinds of support, whether to develop products related to drugs or for developments in other sub-sectors of biotechnology (such as agriculture, food and environment). For South African biotech companies, the lack of sufficient capital and the availability of funding is a chronic problem that has lasted for many years. In this article, using the case analysis method, a study was conducted to better understand the importance of supporting and financing biotechnology firms, especially during the Covid-19 pandemic, as accepted by the key players of the sector in South Africa, one of the developing countries. Overall, biotechnology firms have a more positive approach than their start-up participants do. Nevertheless, alongside this, respondents believe that South Africa's biotechnology lags behind that of other developing countries, but has the potential to grow substantially with the enablers. They have also defined South African biotech venture capital as in its infancy, risk-averse, and conservative in investment power. In addition, the few laboratories that were not operating due to pandemic response time, financial coordination for Covid-19 research, lack of R&D investments, lack of communication between authorities, and complete lockdowns were all recorded as problems.

Keywords

• Innovation
• Innovation ecosystem
• Biotechnology
• South Africa.

İNOVASYON EKOSİSTEMLERİ VE BİYOTEKNOLOJİ ENDÜSTRİSİ: VAKA ANALİZİ ÇALIŞMASI

Abstract

Biyoteknoloji girişimleri ne tür olursa olsun (devlet araştırma kurumu, kamu-özel şirketi veya özel bir işletme), gerek ilaçlarla ilgili ürünler geliştirmek için gerekse diğer biyoteknolojinin alt sektörlerinde (tarım, gıda ve çevresel gibi) gelişmeler için her türlü desteklenmeye ihtiyaçları vardır. Güney Afrikalı biyoteknoloji şirketleri için yeterli sermayenin elde edilmemesi ve fonun mevcudiyeti uzun yıllar suren ve kronik bir problemdir. Bu makalede vaka analizi metodu kullanılarak, gelişmekte olan ülkelerden biri olan Güney Afrika’da politika yapıcılara, sektörün kilit oyuncuları tarafından da kabul edildiği gibi, özellikle Covid-19 pandemisi sırasında biyoteknoloji firmaların desteklenmesinin ve finanse edilmesinin önemini daha iyi anlamak amaçlı bir çalışma yapılmıştır. Genel olarak, biyoteknoloji firmaları girişimci (start-up) katılımcılarına göre daha olumlu bir yaklaşım içerisindedir. Bununla birlikte katılımcılar Güney Afrika biyoteknolojisinin diğer gelişmekte olan ülkelerin gerisinde kaldığına, ancak etkileştiricilerle önemli ölçüde büyüme potansiyeline sahip olduğuna inanmaktadırlar. Ayrıca Güney Afrika biyoteknoloji risk sermayesini, emekleme aşamasında, riskten kaçınan, yatırım gücünde muhafazakar olarak tanımlamışlardır. Buna ek olarak, Ar-Ge yatırım eksikliği, pandemiye müdahale süresi, Covid-19 araştırmaları için finansal koordinasyon, yetkililer arasında iletişim eksikliği ve tam kilitlenmeler nedeniyle faaliyet göstermeyen birkaç laboratuvarın hepsi sorun olarak kaydedilmiştir.

Keywords

• İnovasyon
• İnovasyon ekosistemi
• Biyoteknoloji
• Guney Afrika.
• Innovation
• Innovation ecosystem
• Biotechnology
• South Africa.

References

1. Al-bader, S., Frew, S., Essajee, I., Liu, V., Saar, A., Singer, P. (2009). Small but tenacious: South Africa’s health biotech sector. Nature Biotechnology, 27(5): 427–445.
2. Blanco-García E. (2020). Role of Business Models in Funding the Biotech Industry: Global Trends and Challenges for Cuban Biotechnology. MEDICC Review, 22 (1), s. 11-16
3. Coenen L., Moodysson J., Asheim B.T. (2004). Nodes, Networks and Proximities: On the Knowledge Dynamics of the Medicon Valley Biotech Cluster. European Planning Studies, 12 (7), 1003–1018.
4. Granstrand O. ve M. Holgersson (2020). Innovation ecosystems: A conceptual review and a new definition. Technovation, 90-91 (2020), 102098
5. Haar J. (2017). Ecosystems of Innovation: The Case of Biotechnology in Argentina. https://www.wilsoncenter.org/sites/default/files/media/documents/publication/biotech_in_arg_haar.pdf, 19 Nisan 2021
6. Hiller R. (2019). Building a biotech start-up ecosystem in South Africa: Lessons learned at CPGR through 3 years of involvement. https://www.cpgr.org.za/building-a-biotech-start-up-ecosystem-in-south-africa-lessons-learned-at-cpgr-through-3-years-of-involvement/, 19 Nisan 2021
7. Hine, D. ve Kapeleris J. (2006). Innovation and Entrepreneurship in Biotechnology, an International Perspective Concepts, Theories and Cases. Edward Elgar
8. Huang X. vd. (2020). Determinants of Innovation Ecosystem in Underdeveloped Areas—Take Nanning High-Tech Zone in Western China as an Example. Journal of Open Innovation: Technology, Market and Complexity. 2020, 6, 135; doi:10.3390/joitmc6040135

9. Kagami A. (2019). Analysis and Comparison of the Biotech Startup Ecosystem in the United States and Japan. Master of Science in Engineering and Management at the Massachusetts Institute of Technology, 2019.
10. Kiper M. (2013). Sektörel İnovasyon Sistemi. Biyoteknoloji Sektörel İnovasyon Sistemi Kavramlar Dünyadan Örnekler Türkiye’de Durum ve Çikarimlar, M. Kiper (Editor) Türkiye Teknoloji Geliştirme Vakfı Ankara Yayın No: ttgv-T/2013/001
11. Malazgirt, A. (2011). Case Studies of Successful Commercialization of Biotechnology in Daedeok Valley. Asia-Pacific Tech Monitor, 28(2): 37–44.
12. Marsh D. (2003). Does New Zealand have an innovation system for biotechnology?. Technovation, 23 103–112
13. Meral O. (2022). Biyoteknolojiye Giris. https://acikders.ankara.edu.tr/pluginfile.php/112107/mod_resource/content/0/Biyoteknolojiye%20Giri%C5%9F.pdf ,19 Haziran 2022
14. Mercan B. ve D. Goktas (2011). Components of Innovation Ecosystems: A Cross-Country Study. International Research Journal of Finance and Economics, Sayi 76, s. 102-112
15. Meyers, A. D. ve Hurley, P. (2008). From the Classroom Bioentrepreneurship education programmes in the United States. Journal of Commercial Biotechnology, 14(1): 2–12.
16. Millard M. (2018), “What Is an Innovation Ecosystem and How Are They Essential for Startups?”, https://masschallenge.org/article/startup-innovation-ecosystem-explained , 15 Ekim 2022.
17. Moretti E. ve Wilson D. (2016), The Effect of State Taxes on the Geographical Location of Top Earners: Evidence from Star Scientists”, https://dornsife.usc.edu/assets/sites/1003/docs/taxes.pdf , Eylul 2016
18. Muller vd. (2004). Sources of Bioentrepreneurship:The cases of Germany and Japan. Journal of Small Business Management, 41(1), s. 93-101
19. Niosi J. ve T. Bas (2003). Biotechnology Megacentres: Montreal and Toronto Regional Systems of Innovation. European Planning Studies cilt. 11, sayi. 7
20. Nosella A., G. Petroni ve C. Verbano (2006). How Do Italian Biotechnology Startups Survive?. Journal of Business Chemistry, cilt. 3, sayi 2, s.7-14.
21. Nyamaka A. T, A. Botha, J. V. Biljon ve M. A. Marais (2020), “The components of an innovation ecosystem framework for Botswana's mobile applications”, The Electronic Journal of Information Systems in Developing Countries (EJISDC), Cilt. 86, Sayi. 6, 2020 https://doi.org/10.1002/isd2.12137
22. OECD (2001) https://stats.oecd.org/glossary/detail.asp?ID=219 , 8 Mart 2021
23. Öktem H. A. vd. (2013). Biyoteknoloji: Tanım ve Kapsam. Biyoteknoloji Sektörel İnovasyon Sistemi Kavramlar Dünyadan Örnekler Türkiye’de Durum ve Çikarimlar, M. Kiper (Editor) Türkiye Teknoloji Geliştirme Vakfı Ankara Yayın No: ttgv-T/2013/001
24. Özdemir A. H. ve S. Ö. Çakar (2013). İrlanda Biyoteknoloji İnovasyon Sistemi. Biyoteknoloji Sektörel İnovasyon Sistemi Kavramlar Dünyadan Örnekler Türkiye’de Durum ve Çikarimlar, M. Kiper (Editor) Türkiye Teknoloji Geliştirme Vakfı Ankara Yayın No: ttgv-T/2013/001
25. Pillay, N. S. ve Uctu, R. (2013). A Snapshot of the Successful Bio-Clusters around the World: Lessons for South African Biotechnology. Journal of Commercial Biotechnology, 19 (1), s. 40-52
26. Poon, P. ve Liyange, S. (2004). Commercialization of biotechnology in newly industrialized economies. Int. J. Biotechnology 6 (2/3): 243-259
27. Prahalathan, S., Kumar, A. ve Mazumdar, R. (2010). Biotechnology Industry in India: Opportunities for Growth. Exim Bank: Export- Import Bank of India, Arastirma sayi. 137 (URL: http://www.eximbankindia.com/op/op137. pdf, 04 Mayis 2011)
28. Sainsbury, Lord of Turville (1999). Biotechnology clusters. Department of Trade and Industry London: UK.
29. Schoemaker, H. J. P. ve Schoemaker, A. F. (1998). The three pillars of bio-entrepreneurship. Nature Biotechnology 16: 13–15.
30. Semete-Makokotlela B. (2014). Investment performance of the South African Biotechnology industry and potential financing models. Master’s Thesis, Wits Business School, University of Witwatersrand, Johannesburg, South Africa, 2014/2015
31. Sherwin, H. (2007). The challenges of starting up a biotech company in South Africa. Chapter in Biotechnology and Health South Africa’s aspirations in health-related biotechnology, (eds.) Chataway, J. and James, W., Van Schaik Publishers
32. Smorodinskaya N., M. G. Russell, D. Katukov and K. Still (2017), Innovation Ecosystems vs. Innovation Systems in Terms of Collaboration and Co-creation of Value, Proceedings of the 50th Hawaii International Conference on System Sciences, URI: http://hdl.handle.net/10125/41798
33. Uctu, R. ve Pillay, N. S. (2012). The Emergence of Bio-clusters in Egypt and South Africa. Journal of Commercial Biotechnology, 18 (1), s. 30-36
34. Uctu, R. ve Essop, H. (2013). The Role of Government in Developing the Biotechnology Industry: A South African Perspective. Prometheus: Critical Studies in Innovation, Vol. 31, No. 1: 21-33
35. Uctu, R. ve Jafta, R. (2014). Bio-entrepreneurship as bridge between science and business in a regional cluster: South Africa’s first attempts. Science and Public Policy, 41 (2), s. 219-233.
36. Uctu, R. (2016). Biyoteknoloji Endustrisinde Bölgesel Inovasyon Sistemleri: Güney Afrika ornegi. Bolgesel Kalkinmada Yeni Trendler, Editorler: Zekeriya Mizirak and Birol Mercan, Cizgi Kitabevi
37. Uctu, R. ve Jafta, R. (2018). Turbulence in the biotechnology sub-sector of the Western Cape Regional Innovation System. Journal of Commercial Biotechnology, 24 (2), s.10-20
38. Uctu, R. ve Essop, H. (2020). Identifying the strength and weaknesses of the South African tech-based industries: Insights from the Swiss South African Business Development programme. African Journal of Science, Technology, Innovation and Development, 12 (4), s. 517-528
39. Uctu, R., ve K. Eksteen (2022). Covid-19 Pandemic and Importance of Financing the Biotechnology Industry in South Africa. The Journal of Entrepreneurial Finance, Cilt 24, Sayi 1, pp. 69-94
40. Yiğit S. (2018), “Türkiye’nin Ulusal İnovasyon Ekosistemi”, Girişimcilik İnovasyon ve Pazarlama Araştırmaları Dergisi, Yıl: 2018, 2(4):125-144
41. Warneck L. (2018). It Takes an Ecosystem to Build a Startup. https://www.labiotech.eu/partner/ecosystem-biotech-startup-basel-baselaunch/, 19 Nisan 2021
42. Zheng, X.; Cai, Y. (2020), Transforming Innovation Systems into Innovation Ecosystems: The Role of Public Policy. Sustainability 2022, 14, 7520. https://doi.org/10.3390/ su14127520
43. https://www.bio.org/sites/default/files/legacy/bioorg/docs/BIO_Ecosystem_Infographic_r9.pdf, 19 Nisan 2021
44. https://www.grandviewresearch.com/industry-analysis/biotechnology-market# ,22 Haziran 2022
45. https://innovation.mit.edu/education-community/classes/real/ , 15 Ekim 2022