Characteristics of firms engaged in collaborations

1. Characteristics of firms engaged in collaborations Charlene Lonmo Science, Innovation and Electronic Information Division Statistics Canada Presentation at CIRANO September 19, 2008

2. Theory – collaboration by science-intensive firms Data: Surveys of Biotechnology Use and Development – 1999 to 2005 Profile of innovative biotechnology firms by selected characteristics Comparison of collaborators and non-collaborators Conclusion Overview of the Presentation Statistics Canada • Statistique Canada

3. Science-based businesses “… connote a commercial enterprise or collection of enterprises that attempts to both create science and to capture value from it. That is, the science-based business actively participates in a process of advancing and creating science. Moreover, a significant part of the economic value of the enterprise is ultimately determined by the quality of the science upon which it rests.” Gary Pisano, Science Business Theory: collaboration by science-intensive firms Statistics Canada • Statistique Canada

4. “Cooperative and collaborative arrangements involve the active participation in projects between your company and other companies or organizations in order to develop and/or continue work on new or significantly improved biotechnology processes, products and/or services. Pure contracting-out work is not regarded as collaboration.” Biotechnology Use and Development Survey Theory: collaboration by science-intensive firms Statistics Canada • Statistique Canada

5. Survey process Survey on Emerging Technologies supplemented with other sources such as the RDCI, government agencies and business associations to create a frame Population covered by estimates Innovative biotechnology firms – those developing biotechnologies, not merely using them Biotechnology is defined in the questionnaire and this definition is generally accepted for biotech surveys in other OECD countries Questions asked Technologies, human resources, HR challenges and strategies, firm characteristics (age, ownership, spin-off), products, impacts of regulations, contracting in and out, collaborations, intellectual property, traditional financial data, special financing, tax incentives, exports, imports and business strategies Data: Surveys of Biotechnology Use and Development – 1999 to 2005 Statistics Canada • Statistique Canada

6. Profile of innovative biotechnology firms Source: Statistics Canada: Biotechnology Use and Development Surveys, 1999 to 2005 Statistics Canada • Statistique Canada

7. Collaboration by selected characteristics: Human health biotech sector Source: Statistics Canada: Biotechnology Use and Development Surveys, 1999 to 2005 Statistics Canada • Statistique Canada

8. Collaboration by selected characteristics: firm size by employment Source: Statistics Canada: Biotechnology Use and Development Surveys, 1999 to 2005 Statistics Canada • Statistique Canada

9. Collaboration by selected characteristics: age of biotech firm Source: Statistics Canada: Biotechnology Use and Development Surveys, 1999 to 2005 Statistics Canada • Statistique Canada

10. Collaboration by selected characteristics: biotech firms that are spin-offs Source: Statistics Canada: Biotechnology Use and Development Surveys, 1999 to 2005 Statistics Canada • Statistique Canada

11. Collaboration by selected characteristics: biotech firms with patents Source: Statistics Canada: Biotechnology Use and Development Surveys, 1999 to 2005 Statistics Canada • Statistique Canada

12. Collaboration by selected characteristics: biotech firms that obtained funding Source: Statistics Canada: Biotechnology Use and Development Surveys, 1999 to 2005 Statistics Canada • Statistique Canada

13. Collaboration by selected characteristics: stage of development Source: Statistics Canada: Biotechnology Use and Development Surveys, 1999 to 2005 Statistics Canada • Statistique Canada

14. Collaborating firms:collaboration partners and purposes Source: Statistics Canada: Biotechnology Use and Development Surveys, 1999 to 2005 Statistics Canada • Statistique Canada

15. Key variables: Biotech revenues Biotech R&D Biotech employment Fund-raising Comparison of collaborators and non-collaborators by selected key variables Statistics Canada • Statistique Canada

16. Collaborators vs. non-collaborators by Biotech Revenues Note: Revenues are in constant 2002 dollars Source: Statistics Canada: Biotechnology Use and Development Surveys, 1999 to 2005 Statistics Canada • Statistique Canada

17. Collaborators vs. non-collaborators by Biotech R&D Note: R&D expenditures are in constant 2002 dollars Source: Statistics Canada: Biotechnology Use and Development Surveys, 1999 to 2005 Statistics Canada • Statistique Canada

18. Collaborators vs. non-collaborators by Biotech Employment Source: Statistics Canada: Biotechnology Use and Development Surveys, 1999 to 2005 Statistics Canada • Statistique Canada

19. Collaborators vs. non-collaborators by Biotech fund-raising Note: Funds are in constant 2002 dollars Source: Statistics Canada: Biotechnology Use and Development Surveys, 1999 to 2005 Statistics Canada • Statistique Canada

20. Trends The proportion of biotech collaborators is dropping Spin-off firms are more likely to be collaborators Firms with patents are more likely to be collaborators Firms that obtained funding are more likely to be collaborators The proportion of funded firms that collaborate is dropping, as has the average value of funds raised – the difference between collaborators and non-collaborators is diminishing Value of other approaches Linked database to enable the study of impacts Conclusions Statistics Canada • Statistique Canada

21. For further information: Chuck McNiven – Section Chief for Emerging Technologies chuck.mcniven@statcan.ca Charlene Lonmo – Survey manager for BUDS and the Survey on Emerging Technologies charlene.lonmo@statcan.ca Beau Cinnamon – Survey manager for Bioproducts Survey and Functional Foods and Natural Health Products Survey beau.cinnamon@statcan.ca Questions Statistics Canada • Statistique Canada