estonian biotechnology sector - insights

Estonian Biotechnology

Sector - insights

Sven Parkel, PhD

Ostrawa 2016

My background

PhD in Bioorganic Chemistry

University of Tartu

Connected Health Estonia cluster

Startups

Sector analysis for the Estonian Development Fund

Why biotech / healthtech?

One of the fastest growing industries

High added value

Creates jobs in other sectors.

Creates additional indirect and induced economic activity

Above average salaries

Recreates the workers’ health thus reduces costs for the economy

Centar

Added value prediction

Value added (million EUR) Share of private sector (%)

year year

Number of workers Share of workers in private sector (%)

Value added per worker (EUR) Value added per worker compared

to private sector average

Export (million EUR) Share of export in revenue (%)

Support measures (million EUR) Share of the support in value added (%)

Biotech is like decathlon

a strong science base

• supportive entrepreneurial culture

• a growing company base

• the ability to attract key staff

• the availability of financing

• appropriate premises and R&D infrastructure

• the close proximity of business support services and large companies in related industries

• a skilled workforce

• effective networks (for example, associations and cluster councils)

• supportive (national, regional and local) government policies

BIOTECHNOLOGY CLUSTERS, Minister for Science UK, 1999

Strong science base

Entrepre

neurial

culture

Growing

company

base

Ability

to

attract

key staff

Appropriate

premises and

infrastructure

Skilled

workforce

Large

company

Availability

of

financing

Effective

networks

Supportive

policies

Strong science

R & D expenses (2013)

%GDP million EUR scientists per 1000 inhabitants

Estonia 1,74 389 7,33

Latvia 0,8 235 3,1 (2009)

Lithuania 1,01 (2014) 443

University of Tartu – the only Baltic university in

top3% in Times Higher Education list.

Two best Baltic universities by QS World

University Rankings are in Estonia

Estonian Development Fund, Smart Specialization report

(talent pool and) ability to attract key

staff

Top level scientists returning or coming to Estonia

Number of businessmen, coaches and mentors with sector

experience

Number of PhD holders in private sector

appropriate premises and R&D

infrastructure

Laboratory space used for entrepreneurial activities,

turnover of commercialization activities

testbeds

Competence Centres, Institutes, Universities

Private R&D organization

the proximity of business support services

and large companies (in related industries)

Number of large companies

Number of support service providers – lawyers,

accountants, HR, etc

availability of financing

Number of experienced investors

Proof-of-Concept funding

Financing the technology development (beyond PoC)

Venture capital, foreign capital, deals with large biotech/pharma

companies

supportive entrepreneurial culture

Number and size of the sector companies - 50 companies and 300 workers

PhD holders with relevant business experience, experiencedbusinessmen with sector specific competences

R&D collaboration between companies and R&D institutes

University spin-offs, entrepreneurship programs, scolarshipswith entrepreneurs

Quality and quantity - match between the needs of entrepreneurs and skills of graduants

effective networks

Synchrony between different ecosystem parts:

Networks for every company / startup phase

Number of new partners, development potential and openness

• Member of European Connected Health Association

• All healthtech related universities

• ~40 companies in different development phases (mostly ICT)

supportive (national, regional and local)

government policies

National programme (Estonian Biotechnology Programme 2010-2013)

Taxes – relief for R&D activities

a growing company base .....

Number of ideas and startups (by different phases)

Number and value of exits

Raised capital

Revenue and turnover of the sector

Number of job positions

Export?

Strong science base

Entrepre

neurial

culture

Growing

company

base

Ability

to

attract

key staff

Appropriate

premises and

infrastructure

Skilled

workforce

Large

company

Availability

of

financing

Effective

networks

Supportive

policies

Pre-launch Startup phase

Financial need

Profit/Loss

Science Preparation Startup Early phase GrowthMarket access

Basic science.

No vision for a

company, no

team.

Proof-of-

concept, IP

evaluation,

patenting. R&D

and targeted

financing. First

ideas about the

potential,

business plan

and model.

Finding team

members.

Company

registration, team

formation. R&D

acitivities.

Adjusting business

plan and model.

Negotiations with

regulatory organs,

partners, etc. First

product(s). New

patent

applications

Product testing,

discussions with

regulatory

organs.

Describing and

fine-tuning the

product. Finding

partners.

Market entry,

finding

partners,

sales.

Feedback

from the

market, users.

Establishing

market share,

selling, growing

Estonian Development Fund, Smart Specialization report

Technology Transfer Unit

What we offer

Access to...

services – from analysis and measurement to in depth consultation and training

students – workforce with potential

infrastructure – from world class equipment to state-of-the-art facilities

research – let us solve your problems

technology – the next leap in progress

11.05.2016siim.kinnas@ut.ee 30

Estonian Biopank / Genome Center

Contains over 50 000 general population samples – 5% of Estonian population

Medical history and current health status is recorded according to ICD10

codes, medication according to ATC

Can be linked to Estonian eHealth system

18 scientific collaboration projects with foreign partners

70 publications

Functional food and supplementsInstitute of Microbiology and Institute of Biochemistry combine their

know-how in offering innovative solutions to food and food supplement

companies.

Unique patented lactic acid bacteria L. fermentum ME-3 is strong

natural antioxidant suitable for different products containing dairy, vegan

milk, chocolate or vitamins, minerals and other active substances.

Extensive collection of other beneficial strains.

Long-term experience with Maitokolmio (FI), Raisio (FI), L’allemand (FR),

VF Bioscience – Reg’Activ products (FR)), licenses available.

Thank you!

Sven Parkel, PhDTechnology Transfer OfficerOffice of Research and DevelopmentUniversity of Tartu,Lossi 3-323, 51003 TartuESTONIA

sven.parkel@ut.ee

Phone: (+372) 5663 5577