biotechnology industry in kerala: a view from the trenches
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© 2010 ubio. All rights reserved. 1
A View From the Trenches
Biotechnology industry in Kerala, as seen by a young biotech startup
© 2010 ubio. All rights reserved. 2
ubio Biotechnology Systems Pvt. Ltd. Is a start-up biotechnology venture that focuses on Development and manufacture of low-cost diagnostic Kits for clinical diagnosis
Started in 2008. Target Markets: human , veterinary and
industrial diagnostics Research Focus on Biochip diagnostics for
cancer , TB and tropical diseases. Currently manufacturers 57 diagnostic
products
Introduction
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The Triad of IndustrialisationRegulations
Education Market
Industry
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Is there a market for biotech products in Kerala? What are our needs that can be addressed by
biotechnology? Waste disposal, low-cost healthcare, vector control,
agricultural productivity, food preservation and processing, what else?
We need better studies:Local need identification and market sizingAssessment of economic value of social benefitsScope of government participation and incentive creation
Self-sufficient healthcare – the Cuba exampleChikungunya, Dengue, Filaria, TB, Endosulfan
Who should be interested?Why cant we develop diagnostics, vaccines, medicines and equipments?
The Biotech Market in Kerala
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National and international markets Diagnostics and medicines for tropical diseases Low-cost instrumentation and medical software Contract Research Plant molecules – how to commercialize our
biodiversity? Preservation, processing and value addition of food
products
The Biotech Market for Kerala
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Quality of our biotechnology graduates is apallingOnly general theoretical knowledgeNo practical exposureLack of well-equipped training labsHigh cost of consumablesBest students do not come to biotech
Industry training and participation essential Government should promote industry-education partnership
through incentivised apprenticeship programs. Kerala has the potential to become a biotechnology training
hub like Singapore
Biotech Education
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The cutting edges are now at intersections!
Innovation needs inter-disciplinary thought and focus
Promote ad-hoc educationMake it possible for individuals to subscribe to
specific courses (say, just take immunology classes instead of an entire biotech course)
Relax pre-qualification requirements (say, any engineer should be able to take a biotech degree after taking a few preparatory classes).
Relax age bars in education
Biotech Education
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Good Product Research is non-existant Lack of accountability in research is a big problem Project audits required
What was spent?Why was it spent?What is the outcome?Performance rating based on cost-effectiveness of project
outcome Result audits required
What happened to the product/technology that was developed?
Was it commercialized? If not, why?
Biotech Research
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Promote industry-academy collaborationAllocate separate grant budgets for basic research and
product developmentProvide product development grants only to collaborative
projectsKeep industry contribution low, but make it mandatoryKerala Biotechnology Commission’s new scheme is a good
example The start-up challenge
Lack of access to expensive equipments, especially for infrequent use
Lack of expertise in specific areas
Biotech Research
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Promote independent innovators and interdisciplinary teamsCreate industry incubators in research institutionsIncentivise incubation and product creation
Open up resources in research institutionsAudit use, availability and status of expensive
instrumentationCreate mandatory industry service cellsProvide access to expensive equipment at affordable
ratesCreate incentives to promote academic support given
to industry
Biotech Research
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Proliferation and internetworking of start-ups create innovation spiralsExamples: Japanese auto industry, US/German electronics boom post-
WW2, Silicon Valley Cost of supporting startups is lower than the cost of
attracting huge capital Knowledge based startups create high-value
employment Start-ups lay foundations for entire industries
Why promote start-ups?
© 2010 ubio. All rights reserved. 12
To start-up or not? The dilemma of a well-paid technologistReduce start-up barriers, provide support systems, advertise and promote the
start-up attitude Compensate for lack of ecosystem
Most inputs have to be imported or transported from other states, leading to increased costs.
Provide tax holidays to biotech startups – follow the IT example Facilitate easier financing
We need a working venture capital fund, preferably with government participationCreate a vehicle for easier loan disbursement for priority area startupsMake it easier for banks to provide loans – technical evaluation of most banks
cannot keep up with technological innovations Provide easy access to facilities and instrumentation
Technology parks, common equipment facilities, access to facilities in research institutions
What biotech start-ups need
© 2010 ubio. All rights reserved. 13
ubio Biotechnology Systems Pvt LtdKinfra Hi-tech Park, Kalamassery, Cochin