the wealth of innovation israel life science industry february 2010
TRANSCRIPT
The Wealth of The Wealth of InnovationInnovation
IsraelIsraelLife Science IndustryLife Science Industry
February 2010
MissionMission Promote Trade, Joint Ventures and Strategic Promote Trade, Joint Ventures and Strategic
Alliances between overseas and Israeli Alliances between overseas and Israeli Companies.Companies.
Endorse the integration of Israeli companies Endorse the integration of Israeli companies into the global market. into the global market.
GoalGoal Facilitate Business OpportunitiesFacilitate Business Opportunities
The IEICIThe IEICI Your Link to the IndustryYour Link to the Industry
40.1%
43.2%44.4%44.0%
42.5%
38.0%
36.0%35.0%
31.0%
200820072006200520042003200220011995
Export as % of GDP
Israel and NeighboursIsrael and Neighbours
Necessity is the Mother of InventionNecessity is the Mother of Inventionss
Israel at a Glance Israel at a Glance
Area: 21,000 km2
Population: 7.46 Million GDP/Capita: $27,220 Total Export: $80.4 Billion (13%) Export of Goods: $56.5 Billion (14.4%) 5 years average Inflation rate: 1.6% Penetration [House hold]:
Mobile - 98% Fast Internet - 72% [39 H/month]
Global CompetitivenessGlobal CompetitivenessIsrael 2009 - 2010Israel 2009 - 2010
In the global competitiveness index Israel is ranked 23/134
Notable Advantages Rank Quality of scientific research institutions 3 Utility patents 5 VC availability 8
Source: World Economic Forum (2009-2010)
322545433333
140
8380605555
0.00
IsraelUSA
JapanGermany
Canada
SwissTaiwan
UKIrelandItaly
Singapore
Spain
from Creation Creationto Creativity Creativity
IsraelIsraelLife Science IndustryLife Science Industry
Science Science && Novelty NoveltyNobel Prize WinnersNobel Prize Winners
Prof. Avram Hershko & Prof. Aaron Prof. Avram Hershko & Prof. Aaron CiechanoverCiechanover
Winner of the 2004 Nobel Prize in Winner of the 2004 Nobel Prize in Chemistry Chemistry
Total of Total of 99 Nobel Prize winners in Economy (2005, Nobel Prize winners in Economy (2005, 2002), Literature (1966) and in Peace 2002), Literature (1966) and in Peace
(1978,1994). (1978,1994).
Prof. Ada Yonath Prof. Ada Yonath
Winner of the 2009 Nobel Prize in Winner of the 2009 Nobel Prize in Chemistry Chemistry
The Industry DriversThe Industry Drivers
1.1. Technology Transfer InstitutesTechnology Transfer Institutes
2.2. Commercialized defense technologyCommercialized defense technology
3.3. Healthcare systemHealthcare system
4.4. Strong entrepreneurial spiritStrong entrepreneurial spirit
5.5. Powerful VC communityPowerful VC community
6.6. Highly skilled workforceHighly skilled workforce
7.7. Institutional incentivesInstitutional incentives
Well of NoveltyWell of Novelty Creative fusion between academia and Creative fusion between academia and
businessbusiness
69 - 75 Basic Research
75 - 87 Clinical Trials
87 - 96 Teva Licensing
1996 - FDA Approval
www.ittn.org.il
Fountain of InnovationFountain of Innovationand they shall beat their swords into and they shall beat their swords into
plowshares…plowshares…
Given ImagingGiven Imaging Galil Galil
MedicalMedical
Remon MedicalRemon Medical MTC MTC
IndustriesIndustries
Spring of CreativitySpring of Creativity Early adopters physicianEarly adopters physician
Healthcare expenditure 2008Healthcare expenditure 2008 8% of the GDP, (2,088$ per capita)8% of the GDP, (2,088$ per capita)
3.5 Physicians per 10003.5 Physicians per 1000 44 general hospitals (373 44 general hospitals (373
hospitals), 42,100 bedshospitals), 42,100 beds
Sources: CBS Israel
www.ittn.org.il
% of GDP - 2007
10.1
10.2
10.6
10.9
11.3
13.0
15.8
8.7
8.9
8.9
10.0
6.0
7.9
8.0
8.1
8.2
8.2
Poland
Irland
Israel
Finland
Hungary
UK
Australia
Norway
Sweden
Portugal
Austria
Germany
Switzerland
France
Denmark
Canada
USA
CultureCulture
Strong Entrepreneurial Spirit.Strong Entrepreneurial Spirit.
Improvisation - Risk taking attitude.Improvisation - Risk taking attitude.
Military service based - Intense social networking.Military service based - Intense social networking.
Convergence - Different socio-economy Convergence - Different socio-economy backgroundbackground
Informality - Easy access to decision makers.Informality - Easy access to decision makers.
Extensive new immigrants - Multicultural Extensive new immigrants - Multicultural environment.environment.
MedinolGregory Pinchasik
Private VC IndustryPrivate VC Industry
199219921 Government Fund1 Government Fund
$100 Million$100 Million
20082008~~80 Private VC Funds80 Private VC Funds
$10 Billion$10 Billion
PontifaPontifaxx
ArteArte AurumAurum
2008 - 483 companies raised $2.08 b, 18% above the $1.76 b raised in 2007 and 28%
above 2006.
Highly Skilled WorkforceHighly Skilled Workforce
34% of the population holds university degrees.34% of the population holds university degrees.
24% of the working force (324% of the working force (3rdrd after the US and Holland). after the US and Holland).
12% holds advanced degree12% holds advanced degree
40% of the 90’s immigrants hold academic degree.40% of the 90’s immigrants hold academic degree.
Institutional IncentivesInstitutional Incentives
Chief Scientists grantsChief Scientists grants
R&D ConsortiumsR&D Consortiums
Technology incubatorsTechnology incubators
Bi-National fundsBi-National funds
Federal grants (NIH)Federal grants (NIH)
EU FrameworkEU Framework
Marketing GrantsMarketing Grants
1.11.1
1.71.82.12.22.42.52.6
3.13.4
4.1
4.8
Italy
Irland
UK
Netherlands
Fran
ce
USA
Korea
Germ
any
Sw
iss
Japan
Finland
Sw
eden
Israel
Expenditure of civilian R&D In Israel & OECD countries
(% of GDP)
CSO Grants - 2008
Communication, 32.9%
Life Science, 25.4%
Electronics, 13.0%
Elctro-Optics, 4.2%
IT, 9.8%
Chemistry, 3.5%
Others, 11.2%
360 Million USD
Graduated1,175( 100%)
No Funds463( 39%)
Raised Funds 712( 61%)
Active51( 4.4%)
Ceased412( 34.6%)
Ceased318( 27.5%)
Active394( 33.6%)
IsraelIsraelLife Science IndustryLife Science Industry
Business CardBusiness Card
Fast Growing IndustryFast Growing IndustryYoung, Young, Creative, & InnovativeCreative, & Innovative
IndustryIndustry
Companies' Stage
Seed, 30%Revenue
Growth, 6%
Initial Revenue, 26%
R&D, 38%
19961996 By 2009By 2009186 companies 186 companies over 1000 companiesover 1000 companies
70-80 new companies being formed each year70-80 new companies being formed each year
Over 1100 Companies
Medical Devices, 65%
AgroBio2%
Others2%
Pharma, 13%
Healthcare IT8%
Bio, 11%
Growth EngineGrowth Engine
Export - $6.5 billion in 2008 (26%)Export - $6.5 billion in 2008 (26%)
13% of the goods export (38% of High-Tech)13% of the goods export (38% of High-Tech)
NA 72%, Europe 21%, and Asia 5%.NA 72%, Europe 21%, and Asia 5%.
Medical DevicesMedical DevicesRanked 2Ranked 2ndnd for its Medical Devices for its Medical Devices
SolutionsSolutions
TopSpin MedicalTopSpin MedicalIntravascular MRI
InsightecInsightecMRI Guided non-invasive surgical
procedureX
Sirius ISSirius ISPerpetumobila
Molecules - Bio & Molecules - Bio & PharmaPharma
A World Leader in ResearchA World Leader in Research
Smart BiotechSmart BiotechTime traveling: up-to Time traveling: up-to 2 years in 5
days
BiondVaxBiondVaxMulti-season/multi-strain Flu vaccine
Protalix Protalix [AMEX: PLX][AMEX: PLX]Plant cell-based recombinant protein
expression technology
Healthcare ITHealthcare ITLeading in ImplementationsLeading in Implementations
Over 95% of MD’s use IT in daily practice.Over 95% of MD’s use IT in daily practice.
““Israel is among the world leaders in the usage of Israel is among the world leaders in the usage of Information Technology (IT) in Healthcare” (Gartner)Information Technology (IT) in Healthcare” (Gartner)
Wealth of ClustersWealth of ClustersA Short ListA Short List
Diagnostics (125)Diagnostics (125)
Healthcare IT (73)Healthcare IT (73)
Imaging (62)Imaging (62)
Drug Delivery (54)Drug Delivery (54)
MIS (49)MIS (49)
Monitoring (39)Monitoring (39)
Telemedicine (15)Telemedicine (15)
Cardiovascular (106)Cardiovascular (106)
Dental (69)Dental (69)
Derma &Aesthetics Derma &Aesthetics (40)(40)
Oncology (38)Oncology (38)
Orthopedics (32)Orthopedics (32)
Women's’ Health Women's’ Health (31)(31)
Home CareHome Care
IsraelIsraelLife Science IndustryLife Science Industry
Bringing InnovationBringing InnovationAround the WorldAround the World
International PresenceInternational PresenceWith Equity PositionWith Equity Position
Knowledgebase PortalKnowledgebase PortalIntuitive Map & Smart SearchIntuitive Map & Smart Search
www.export.gov.il/ls www.export.gov.il/ls
IsraelIsraelThe Promised LandThe Promised Land
15 May 194815 May 1948
680,000680,000
20102010
7,465,0007,465,000
ThanksThanks
Choose IsraelChoose IsraelLet us do the restLet us do the rest
Angelica Khachaturov Medical Devices & Healthcare IT
[email protected]@export.gov.il
Ronen Gruber Biotechnology & Pharmaceuticals
Industries
[email protected]@export.gov.il