Featured Article Cont'd.

Improvement signs:

The availability of risk capital for early stage initiatives will be a clear indicator of improvement. Seed capital is not only present at local level but at global level also. It is hard to create innovative start-up without availability of risk capital. In the current scenario, the tendency to take the risk is really low. The expectations of investors are negative. They are focused on short-term results, which is a bad news for biotech companies. But once the seed capital will be available, which I hope is going to happen soon, it will be possible to restart the process. I also feel that the financing schemes available in the near future in several countries will also boost the development. These initiatives are frequently coupled with cluster territorial initiative such as in our region (Piemonte - Italy). The regional authorities in our region are supporting the formal creation of a local biotech and med tech innovation cluster made of more than 100 different companies, services providers, 3 universities and several R&D centres (www.piemontelifesciences.org) and at the same time, they are planning financing schemes for R&D activities.

How should companies handle the current situation?

I feel that the concentration process coupled with a different approach to the market focusing strongly on networking and alliances is a good way to grow even in such period of turbulence. It is sure that the optimization of costs is a sound strategy to ameliorate the competitiveness but the risk is to focus only on short-term advantages. Biotech companies must preserve a strategic vision of the world. Yes they must survive but they have to concentrate on the medium to long-term results as well. They have to valorise the partnership chain from the university to the market, which is a peculiar aspect of this sector. The partnership chain is probably the way to survive in such period of global crisis.

As science park (www.bioindustrypark.eu) and cluster management organisation, we are supporting our companies. We are supporting the internationalisation process and at the same time we are lowering costs for companies, particularly start-up through our open access technological platforms. We are also supporting them in raising funds and in building links with other local companies and with companies present in other territories. This has resulted in creating a really positive and attractive ecosystem with 18 start-ups already created in the last 4-5 years attracting 26 million Euro worth risk capital. There are some big companies present in the Park area (Bracco Imaging and Merk Serono) offering the territory not only job places but the possibility to create really innovative activities also. Like the cluster and the companies, the Science Park management also needs a systemic approach where it is necessary to have all ingredients of the success recipe on the table.

Author:

Fabrizio Conicella
General Manager - BioIndustry Park Canavese
conicella@bioindustrypark.it