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Policies for Institutional Intermediaries in the Bioeconomy

Policies for Institutional Intermediaries in the Bioeconomy . David Castle. Why Worry?. Because there is evidence that biotech innovation (SMEs) has for many years been treated as a parallel to ICT innovation Models of bioeconomy R&D are in flux

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Policies for Institutional Intermediaries in the Bioeconomy

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  1. Policies for Institutional Intermediaries in the Bioeconomy David Castle

  2. Why Worry? • Because there is evidence that biotech innovation (SMEs) has for many years been treated as a parallel to ICT innovation • Models of bioeconomy R&D are in flux • Renewed interest in regional + industrial policy • Yet bioeconomy policies are technology focused but not focused on the (non-technological) determinants of innovation

  3. Sustainable Bioeconomy • Meaning: • means that whatever is done to produce food/fuel/feed/fibre has to be ‘sustainable’ • intensification • ‘doing more with less’ • social change

  4. How to Sustain the Bioeconomy? • This question: • is not primarily about material preconditions • correctly identifies innovation as a process • innovation ≠ products and services • focus on those activities that are determinants of innovation

  5. Edquist on Innovation System of innovation “all important economic, social, political, organizational, and other factors that influence the development, diffusion, and use of innovations” (Edquist 1997: 14)

  6. Organisations “Organizations are formal structures with an explicit purpose and they are consciously created. (Edquist and Johnson 1997).” “They are players or actors. Some important organisations in SIs are companies (which can be suppliers, customers or competitors in relation to other companies), universities, venture capital organisations and public innovation policy agencies. (Edquist 2001)”

  7. Institutions “Institutions are sets of common habits, routines, established practices, rules, or laws that regulate the relations and interactions between individuals, groups and organisations (Edquist and Johnson 1997).” “They are the rules of the game. Examples of important institutions in SIs are patent laws and norms influencing the relations between universities and firms. (Edquist 2001)”

  8. Interactions and Functions • Between organisations • learning (market or non-market) • Between institutions • conflict of laws and norms • Between institutions and organisations • mutually embedded • one creates the other • differentiation

  9. Differentiation “There may also be important interactions between different institutions, e.g. between patent laws and informal rules concerning exchange of information between firms. Institutions of different kinds may support and reinforce each other, but they may also contradict and be in conflict with each other.” (Edquist 2001)

  10. Differentiation and Open Innovation Are the organisations and institutions tasked with sustained bioeconomy… …supporting and reinforce each other? or …contradicting and conflicting with each other?

  11. Turbulence: Life Science Patents • Four main sources of controversy: • Distributional inequities / injustice associated with ownership • Principled objections to life science patents • Distortion of norms of science • Instrumental objections about negative impact on innovation

  12. Gene Patents Deter Innovation Genomics in Medicine (2010) 12(4): S1–S2.

  13. Methods Patents Deter Innovation Nature Reviews Genetics (2012) 13:441-8

  14. Early IP Blocks Future Innovation J Pol Ec 2013

  15. Unclear Systemic Effects of IP

  16. Overstatement of Role of Patents

  17. Brüstle v. Greenpeace

  18. Mayo v. Prometheus

  19. AMP et al v. Myriad Genetics

  20. OECD Open Source (Linus Thorvald) Open Science (Cambia) Open Access (PLoS / RCUK) Open Innovation (Chesbrough)

  21. OECD KNM and ‘Open’ • Creating a more accessible pre-competitive science base; • Enabling multiple independent innovators to work on the same problem; • Knowledge management where innovations are strategically transferred in and out of the firm

  22. OECD KNM “…leverage innovative capacity by creating interconnected webs of knowledge that exploit external expertise.”

  23. The Rise of Intermediaries New organisations - combinations of VC, management and IP brokering New institutions - institutionalisation of open innovation credo

  24. Huck Institutes (Penn State)

  25. Scottish Enterprise

  26. Edinburgh BioQuarter

  27. IP Group

  28. U Sydney Charles Perkins Centre

  29. University of Sydney Sydnovate

  30. BioPontis Alliance

  31. Velocity

  32. Triple Helix

  33. Trajectory of Open Innovation • TTOs are in jeopardy • Firm-centric open innovation and institution / organisational open innovation • Dynamics of inventors’ / innovators’ context is changing but a framework for analysing determinants of institutional dynamics is missing • Organisational and institutional dynamics are increasingly differentiated

  34. Differentiation in Intermediaries • Institutions • Proliferating • Differentiating • Complex • Diffusing • Creating incentives • Organisations • Proliferating • Differentiating • Large Scale • Concentrating • Responding to incentives

  35. Question for Discussion Will bioeconomy be sustained by policies that recognize and support the development and refinement of our system of organisations and institutions, with their diverse and differentiated array of functions?

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