life sciences innovation ecosystems in turkey

Işıl Güney, Ph.D.

Ulysses Advisory Group

Life Sciences Innovation Ecosystem In Turkey

Contents

I: Components of an Innovation Ecosystem

II: Life Sciences Innovation Ecosystem in Turkey

III: How UAG Can Contribute to Innovation in Turkey

Components of an Innovation EcosystemPart I

Innovation – The Basic Elements

Innovation

Government Policy Basic and translational research;

Development of human talent, entrepreneurship and competition; Immigration policy; Patent policy; Start-up support; Fund and follow-up projects with clear deliverables;

Incentivize R&D investment; Stable and consistent policies

overall

Financial CapitalPublic funds; Philanthropic funds; Angel

funds; Venture capital financing

Human CapitalQuality of education

and access to training resources; Intellectual fulfillment and financial

incentives; Opportunity for career

development

Technology & Knowhow

Internal build up and/or import from outside

Life Sciences Innovation Ecosystem in TurkeyPart II

Turkey – population 75 million18th largest economy in the worldProduction driven, low-medium techObjective: Transform into a knowledge-based economy for smart growth

2023 TargetsBecome one of ten largest economies of the worldBecome a leading country in R&D; raise R&D expenditure from 0.8% to 3% of GDP

Health declared priority areaMedicines export: 595m TL; import:5b TL (2012)Develop first Turkish drug by 2023

Government IncentivesFrom R&D infrastructure all the way to product marketing, attractive incentives from government agencies, including MoDev, MoSIT, MoEcon, TUBITAK, KOSGEB, TUSEB (2017).

Life Science Innovation Ecosystem in Turkey

GOVERNMENT POLICY

StrengthsIncreased R&D Funding (TUBITAK 1964-2003 cumulative 1.8b TL; 2015 3,2b TL)Support Programs (Entrepreneurship; Start-up, incentivizing R&D investment)Support of Establishment of TTOsSupport for Establishment of Funds

Room for ImprovementContinuing efforts already in place; Stability and consistency in policy (innovation and market entry have very long timelines); long-term investment for development of human talent; Patent policy (Bolar exemption); follow-up and follow-on funding


FINANCIAL CAPITAL

Fund of FundsTurkey Investment Fund (TIF) 250m TLTurkish Growth and Innovation Fund (TGIF) 200m Eur

Seed Funds (relatively easy to find)EIF-supported DCP and ACT -> commercializing applied research from universities

Not enough VC funds- limiting step in startup and scaleup

There is no life-science dedicated fund in Turkey- we think this is necessaryThis is a niche area that requires immense knowhow and expertise


HUMAN CAPITAL

Brain DrainLarge number of successful Turkish PhDs opting to work abroadThousands of Turkish students leave Turkey to receive education; many do not returnTUBITAK providing grants to researchers who come back


HUMAN CAPITAL


TECHNOLOGY & KNOWHOW

Internal Build-UpOrganic growth and Buildup (slow)Clusters and consortia as platforms of collaboration: INOVITA, ITAM, ISEK

Import Returning Scientists (not nearly enough)TUBITAK-NIH support for R&D collaborationsHorizon 2020- supporting international collaborations


TECHNOLOGY & KNOWHOW

GAPS

Good ideas in academia but so far no major success stories for innovation in life sciences

Technology Transfer- efforts in place but lack of knowhow

Commercialization- From bench to the market: Business development; IP management; go-to-market strategy; company formation and team-building; strategic partnerships; financing and exit strategy

How UAG can contribute to innovation in TurkeyPart III

Why we are interested in Turkey

Sector PotentialStrong engineering base, strong scientific diaspora, entrepreneurial drive, government support, much room for growth within an emerging economy

Market PotentialGeography: Links to Europe, Middle East and Turkic countries

ScienceWe come across interesting technologies- good work should not go to waste

Our experience tells as it can be doneWe have contributed to success stories in similar contexts

The Gaps UAG Can Fill in Turkey

Innovation

Government PolicyPolicy advice and development

focusing on best practices around the globe;

Creation of public-private partnerships (discovery

research to product)

Financial CapitalFundraising (seed through IPO);

Fund management; Mergers and Acquisitions

Human CapitalTalent management;

Interim hands-on management during

start-up or critical organizational

transitions

Technology & KnowhowCommercialization: from bench to

market;Technology Transfer and Licensing;

R&D portfolio management

life sciences innovation ecosystems in turkey

Healthcare