Transcript Turkey Needs an Industrial Transformation to - IP Conference

Panel: Entrepreneurial Ecosystem Models around the World
Tuncay Teksöz
Pfizer Turkey
Health & Value and Public Affairs Director
Turkey’s Industrial Transformation Target & IP
Pharma-Perspective
Turkey Needs an Industrial Transformation
to Restore High Economic Growth
Moderated growth since 2012:
Turkey is the world’s
17th largest economy
Below the level to converge with
developed economies
12.0
•Lack of qualification in manufacturing
•Problems in creating high added value
•Insufficient competitive power in exports
10.0
8.0
6.0
4.0
2.0
Middle
Income Trap
2010
2005
2000
1995
1990
0.0
GDP/cap,1000$
Main assets:
Young, dynamic population,
a large domestic market,
and a strategic location
Industrial Transformation
to improve international competitiveness
Industrial Transformation towards High-Tech Addressed in National Strategies
Focusing Healthcare Industries is NOT a Coincidence
High Resource Allocation for R&D
A Platform Industry - Biotechnology
$135B worldwide spending for pharmaceutical innovation; TR gets only 0,038%*
Increased competitiveness has a positive impact to other
industries’s potential to make Turkey’s export basket richer.
Bloomberg data, Capital IQ data, Strategy& analysis
* TEPAV hesaplamaları
TARGETS:
• Increasing share of local production from 50% to 60%
by value terms
• Discovery of at least one original product and/or repositioning
two molecules in different indications
• 25% increase in clinical trials annually
CHALLENGE:
• Can it be realized?
• Are they right KPIs heading to international
competitiveness?
• Do we have a suitable ecosystem?
Panoramic View of Innovation Ecosystem for Biotechnology
IP Protection
Patent Strength
Perceived IP Protection
Enterprise Support
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•
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Business Friendly Environment
Biotech VC, 2007($mm)
VC availability
Capital availability
Foundation
Business expenditures on R&D (%GDP)
Gross domestic expenditure on R&D (%GDP)
Infrastructure quality
Entrepreneurship and opportunity
Partnerships for
Access to Global Markets
Intensity
•
•
•
Pricing &
Reimbursement
Policies
Market Access
Conditions
Biotech patents/ total patents filled wPCT
Value added of konwledge and tech intensive industries
Business expenditures on biotech R&D
• Public – Private – Univ Partnership Platforms
• Access to Global R&D Networks
Education & Workforce
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Scientific American Worldview Scorecard, 2016:
Innovation potential in biotechnology around the world
Post secondary science graduates/cap
PhD graduates in lifesciences per million popl
R&D personnel per 1000 employement
Talent retention
Brain gain (share of global students outside country)
Policy & Stability
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Political stability and absence of terror
Government effectiveness
Regulatory quality
Rule of law
Innovation Potential in Biotechnology vs IP Protection
Where does Turkey Stand?
Turkey
Greece
Latvia
Denmark
30
25
Turkey
United Kingdom
United States
Sweden
20
15
Italy
35
India
30
25
20
Germany
15
10
5
Hungary
Brazil
40
Finland
Netherlands
10
Ireland
China
5
0
Turkey
Malaysia
20
18
16
14
12
10
8
6
4
2
0
South Africa
China
0
Poland
Ireland
Slovak Republic
France
Lithuania
Austria
Portugal
Czech Republic
Singapore
South Korea
Thailand
Belgium
Luxembourg
Spain
Germany
Mexico
Israel
Russia
European Countries
Countries
Pharma-Industry Showcase
Scientific American Worldview Scorecard, 2016: Innovation potential in biotechnology around the world
Upper Middle
Income Countries
For the International Competitiveness
Strong IP Environment at International Standards is Needed
Current Manufacturing
Composition in Turkey
479
1,333
Units (Million)
Local Manufacturing
Import
8.51
Higher value added phases where
IP protected must be focused for
international competitiveness
Current
Production
in Turkey
%74
%26
7.57
Value (Billion)
Local Manufacturing
Import
%47
%53
To Improve Global Competititveness
Turkey Should Integrate with Global Value Chain
• A technological leap is essential to increase the share of high-tech and high value added export for the
sustainable growth
• Pharma and biotechnology are proritized in this technological transformation
• Integration with global value chain is needed for global competitiveness
• Competitive IP standards is one of the key elements to make the ecosystem attractive for biotech investments.