Transcript Life Sciences for Health and Innovation

Life Sciences for
Health and
Innovation: An
OECD Perspective
Robert Wells
Head, Biotechnology Unit
Oslo, Norway
11 October 2011
1
1961: 19 western countries
and 75% of world’s GDP
OECD + RUSSIA + BIICS
> 80% of world’s GDP
64% of world’s population
World population in 2030
Source: Salim Sawaya, based on medium variant of the UN Population Division’s “World Population Prospects: The 2006 Revision Population Database”
Biotechnology at the OECD
• Committee for Scientific and
Technological Policy (CSTP)
• Working Party on Biotechnology (WPB)
• Biotechnology Unit
– Biomedicine and health innovation
– Biotechnology for sustainable (Green) growth
– Converging Technologies (syn bio)
– Knowledge Management (incl. intellelctual property)
– Marine Biotechnology
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CHANGING NATURE
OF SCIENCE AND
INNOVATION
6
Innovation is key to growth...
Contributions to labour productivity growth, 1995-2006, in %
6
5
Intangible capital
MFP
Non-ICT capital
ICT capital
Tangible capital
Labour quality
4
3
2
1
0
-1
* Investment in intangibles and multi-factor productivity growth
account for between two-thirds and three-quarters of labour
Science is increasingly
international….
1998
2008
Sweden
Poland
Belgium
France
Sweden
Poland
Belgium
Russian Federation
Italy
France
Russian Federation.
Netherlands
Italy
Netherlands
Switzerland
Germany
Japan
Switzerland
Spain
Germany
Korea
Spain
Japan
Korea
United Kingdom
United Kingdom
United States
United States
Canada
China
Canada
China
Australia
Australia
Brazil
India
Source: OECD (2010) Measuring Innovation: A New Perspective
Brazil
India
8
New global players have emerged …
Contributions to growth in global R&D, 1996-2001 and 2001-2006
(in billion constant US PPP and %)
180
160
12%
140
11%
120
10%
100
80
7%
23%
60
40
37%
20
13%
Other non-OECD (2)
30%
Other OECD (1)
13%
Japan
13%
EU-27
15%
United States
16%
0
1996-2001
China
2001-2006
Note: (1) Australia, Canada, Iceland, Korea, Mexico, New Zealand, Norway and Turkey
(2) Argentina, Brazil, India, Israel, Russian Federation, Singapore, South Africa, Chinese Taipei
Source: OECD.
The financing of R&D has changed over
time
Financing of R&D, 1981-2005
•
Business financing of R&D has
taken on greater importance as
innovation has become more
important for firm performance –
high-tech industries have grown
in particular.
800,000
700,000
600,000
500,000
400,000
300,000
Other national
Government
Industry
200,000
•
Government’s share has declined
and other national sources
(notably non-profit institutions)
have become more important
sources of R&D financing.
100,000
0
10
Some implications for R&D financing
Firms have started to finance
R&D in universities to access
basic research.


Share of higher education R&D financed by
industry
At the same time, governments
are funding less business R&D
through direct support.
Share of business R&D financed by government
25
7
20
6
5
15
4
10
3
2
5
1
11
2007
2005
2003
2001
1999
1997
1995
1993
1991
1989
1987
1985
1983
1981
0
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
0
Direct and indirect government support to
business R&D (BERD), 2008
As percentage of GDP
%
Costs of f iscal incentives
Direct government f unding of BERD
0.35
0.30
0.25
0.20
0.15
0.10
0.05
0.00
Source: OECD, NESTI 2009 R&D tax incentives questionnaire, based on national sources, some of which may be preliminary.
Note: Countries with a non-shaded bar provide R&D tax incentives but the cost of these incentives is not included yet (waiting to receive estimates).
Chile (2004)
Korea
Japan
Singapore
Ireland (2006)
Switzerland (2004)
Israel
United States
South Af rica (2006)
Portugal
Austria
Romania
Australia (2006)
Denmark (2005)
Higher education
France
Russian Federation
Italy (2006)
Slovenia
Cyprus (2002)
%
100
Mexico (2003)
New Zealand
Spain
Czech Republic
Iceland
Norway
China
Estonia (2002)
Poland
Argentina
Hungary
Chinese Taipei
Slovak Republic
But public investment remains key…
Basic research performed in the public sector, 2007
Percentage
Government
80
60
40
20
0
Innovation involves national and
international collaboration
Co-ownership of Innovation is growing
Between Businesses and PROs…
numbers of co-owned patents
1 000
800
600
400
200
0
National
International
Science and Innovation Profile of Norway
Norway
Average
GERD as % of GDP
HRST occupations as % of total
employment
Science & Engineering degrees as % of
all new degrees
Researchers per thousand total
employment
% of GERD financed by abroad
Patents with foreign co-inventors
% of firms collaborating (as a % of all
firms)
BERD as % of GDP
Venture capital as % GDP
Triadic patents per million population
Scientific articles per million population
% of firms with new-to-market product
innovations (as a % of all firms)
% of firms undertaking nontechnological innovation (as a % of all
firms)
STI Policy Mix: No One Size Fits All
Korea
Average
Switzerland
GERD as % of GDP
HRST occupations as
% of total…
Science &
Engineering…
GERD as % of
GDP
BERD as % of GDP
Venture capital as %
GDP
Researchers per
thousand total…
Triadic patents per
million population
% of GERD financed
by abroad
Scientific articles per
million population
Patents with foreign
co-inventors
% of firms
collaborating (as a…
% of firms with newto-market product…
% of firms
undertaking non-…
Finland
Tertiary level
graduates in…
Science &
Engineering…
Venture capital
as % GDP
Researchers per
thousand total…
Triadic patents
per million…
% of GERD
financed by…
Scientific articles
per million…
Patents with
foreign co-…
Average
AAGR patents
Business funded
R&D in the HE…
GERD as % of GDP
HRST occupations as
% of total…
Science & Engineering
degrees as % of all…
Researchers per
thousand total…
% of GERD financed
by abroad
Patents with foreign
co-inventors
% of firms
collaborating (as a %…
BERD as % of
GDP
BERD as % of GDP
Venture capital as %
GDP
Triadic patents per
million population
Scientific articles per
million population
% of firms with newto-market product…
% of firms
undertaking non-…
Policy can induce greater innovation
Patenting in climate mitigation technologies relative to all sectors
(indexed on 1980=1.0, Annex 1 ratification countries)
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Innovations in biotechnology
Reliance of patents on science citations
(biochemistry papers cited by pharmaceutical patents)
United States
57.7
Japan
9.0
64.8
United Kingdom
6.3
48.6
Germany
11.7
30.7
China
9.8
Korea
20%
13.3
28.0
81.9
0%
10.4
14.3
58.9
40%
Higher education
Government
Industry
Hospital
Other
NA
3.9
14.1
5.4
21.7
18.4
4.3 8.4
22.7
15.4
58.8
France
17.6
7.6
6.6 6.0
60%
80%
Non profit
100%
Battelle Report on the Value Derived from the Human
Genome Project – May 2010
1.The economic and functional impacts generated by the sequencing of the human
genome are already large and widespread. Between 1988 and 2010 the human
genome sequencing projects, associated research and industry activity—directly and
indirectly—generated an economic (output) impact of $796 billion, personal income
exceeding $244 billion, and 3.8 million job‐years of employment.
2. The federal government invested $3.8 billion in the HGP through its completion in
2003 ($5.6 billion in 2010 $). This investment was foundational in generating the
economic output of $796 billion above, and thus shows a return on investment (ROI)
to the U.S. economy of 141 to 1—every $1 of federal HGP investment has
contributed to the generation of $141 in the economy.
3. In 2010 alone, the genomics‐enabled industry generated over $3.7 billion in federal
taxes and $2.3 billion in U.S. state and local taxes. Thus in one year, revenues
returned to government nearly equaled the entire 13‐year investment in the HGP.
4. Overall, however, the impacts of the human genome sequencing are just
beginning—large scale benefits in human medicine, agriculture, energy, and
environment are still in their early stages. The best is truly yet to come.
5. The HGP is arguably the single most influential investment to have been made in
modern science and a foundation for progress in the biological sciences moving
forward.
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Key Recent OECD Biotech Instruments and
Policy Reports
• Guidelines on the Licensing of Genetic Inventions
(2006)
• Guidelines on Quality Assurance in Molecular Genetic
Testing (2007)
• Guidelines for the Operation of Human Biobanks and
Genetic Resource Databases (2009)
• The BioEconomy 2030 (2009)
• Policy Reports on Knowledge Networks and Markets in
Life Sciences and Collaborative Mechanisms in
Intellectual Property in Life Sciences
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Ongoing OECD Work in Biomedicine and
Health Innovation
• Innovative Governance in Biomedicine
– “Berlin Workshop” (2010)
– Policy Report on Biomarkers (2011)
– Planned work in Alzheimer’s/dementia
• Report on Personalised Medicine and
Global Health
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Contacts: www.oecd.org/sti/innovation
www.oecd.org/biotechnology
[email protected]
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