Perceptions of Management Issues in Biotechnology in Thailand

1. Perceptions of Management Issues in Biotechnology in Thailand A Presentation by Associate Prof. Siriyupa Roongrerngsuke, Ph. D. Sarote Phornprapha, Ph.D. for Eighth Asian Bioethics Conference (ABC 2007)

2. Global system governing biotechnology has dominantly been shaped by Western hopes and fears and more research is needed to explore how developing countries view this technology. Few surveys have been conducted in developing countries to clarify how biotechnology is understood, perceived, and discussed. Oversimplification of the risks and benefits of biotechnology Ineffective, inefficient, or even irresponsible management of biotech business Current Situation of Biotechnology in Developing Countries Aerni, 2004

3. Research Objectives • To investigate the issues/topics to be included in the development of a curriculum of the course, “Principles of Biotechnology Management” for students of Master Degree in Biotechnology Management Program for the first time in Thailand.

4. Research Methodologies • Literature survey on related topics: • corporate governance • biotechnology companies Vs. ethical issues • the stakeholder concept in biotechnology • management issues in biotechnology • Development of a draft of Principles of Management for Biotechnology Course Curriculum • Survey of perceptions and comments on issues to be included in the curriculum designed for the course “Principles of Management in Biotechnology” as drafted by the researchers. The methods to be used to survey the perceptions are: • Individual interview • Focus group interview

5. Research Methodologies Populations: • Individual interview: Interviews were conducted to explore perceptions and comments from: • 3 experts in academia in biotechnology from leading universities/institutes in Thailand • 8 top management from leading biotechnology companies in Thailand (preferably those listed in the SET) which include: • agricultural industry (at least 2 companies) • food industry (at least 2 companies) • healthcare industry (at least 2 companies) • pharmaceutical industry (at least 2 companies) • 3 managers from each company listed above

6. Researcher Methodologies • Focus group interview: Interviews were conducted to explore perceptions and comments from 25 from managers of non-biotech companies • Interviews were conducted to survey general awareness and perception of 50 people representing the public regarding biotechnology industry and management issues in biotechnology industry in Thailand.

7. Review of Related Literature:Topics involved in the design of an appropriate curriculum for biotechnology management • Corporate governance, business ethics and bioethics • How biotechnology companies are currently dealing with bioethical issues • The stakeholder concept in biotechnology • Fundamental issues in management course

8. What is Corporate Governance? • Corporate governance refers to “the private and public institutions, including laws, regulations and accepted business practices, which together govern the relationship, in a market economy, between corporate managers and entrepreneurs (‘corporate insiders’) on one hand, and those who invest resources in corporations, on the other. Investors can include suppliers of equity finance (shareholders, suppliers of debt finance (creditors), suppliers of other tangible and intangible assets that corporations may use to operate and grow.” (Oman, 1999)

9. How biotech companies are dealing with ethical issues? Kato and Macer (2003) conducted a survey of 559 biotech companies in USA, UK, France, Canada, and Germany about how they respond to bioethical issues. Study reveals that companies respond to the issues differently and among those 559 companies, only 11 per cent of companies reported that they had codes of ethics, another 11 per cent had a policy or policy statement on ethical issues, and 5 per cent had only general codes of conduct not especially about bioethics.

10. The Stakeholder Concept in Biotechnology • Freeman (2001), a renowned scholar in the field of business ethics views that “stakeholders simply refer to those groups who have a stake in or claim on the firm including suppliers, customers, employees, stockholders, and the firm’s local community.” • Stakeholder analysis “can provide biotechnology companies with a lens through which to pay attention to the full range of interested parties.” (MacDonald, 2004)

11. Management Issues in Biotechnologty • Fundamental knowledge of principles of management and strategic management for biotechnology industry • Fundamental knowledge in biotechnology • Understanding entrepreneurial mindset in startup and large companies. • Finance: financing for biotechnology business, grant proposal strategies and management • Marketing: market analysis, marketing strategies for biotech products

12. Regulatory issues in biotechnology industry such as clinical trial process for both devices and drugs in biomedical technology, FDA approvals. • Intellectual property issues and commercialization • Project management • Product development and transition to business units • Bioethics and legal issues • Stakeholder analysis and corporate governance

13. Results OVERALL RESULTS: Most respondents agree that there is a need for the development of biotechnology management course to prepare managers to be fluent in the following areas: • Fundamentals of management, strategic management, entrepreneurship in biotech industry • Marketing of biotech invention • Financial management and grant management • Management for invention and innovation • Corporate governance for biotech business(bioethics and legal issues) • Intellectual property of biotech products • Managing conflicts of interests and safety issues in biotech companies • Creating and managing human resource in biotech business Among these eight areas, the marketing of biotech invention appears to be the area that respondents deem the most important area to be offered in the curriculum

14. Issues Perceived by Biotech-based Managers • Fundamentals of management, strategic management, entrepreneurship in biotech industry • Intellectual property of biotech products • Corporate governance for biotech business(bioethics and legal issues) • Marketing of biotech invention • Financial management and grant management • Management for invention and innovation • Managing conflicts of interests and safety issues in biotech companies • Creating and managing human resource in biotech business

15. Issues Perceived by Non-Biotech Managers • Fundamentals of management, strategic management, entrepreneurship in biotech industry • Marketing of biotech invention • Financial management and grant management • Management for invention and innovation • Intellectual property of biotech products • Corporate governance for biotech business(bioethics and legal issues) • Managing conflicts of interests and safety issues in biotech companies • Creating and managing human resource in biotech business

16. Other Issues from Experts in Biotech • Biotech is a very important field and mechanism to drive national development and growth • Lack of understanding and adequate support from Government • Problems of legal issues • Lack of understanding and awareness of biotech from the public make it difficult to receive fund and support • Good management is really needed

17. Other Issues from Managers of Non-Biotech • 90% of managers in the non-biotech companies are not familiar with the term “biotechnology,” and are not certain about what the term really means. They are not certain if they know the biotech products and/or inventions as existing and/or available in the daily life.

18. Other Issues from the Public • 78% never heard of the term ‘biotechnology’ • 11 % heard of the term ‘biotechnology’ but do not know the meaning • 11% heard of the term and understand the meaning and importance of biotech

19. Summary & Recommendations • Public needs to be educated about biotech. • Management knowledge in biotech industry is perceived as very important • Prior to the dissemination of biotech management knowledge, awareness of the field must be created.