United States-New Zealand Collaboration in Technology Development

1. United States-New Zealand Collaboration in Technology Development Federal Laboratory Consortium Mid Atlantic Region 2007 Annual Conference Dr Brian Young Science & Technology Counsellor New Zealand Embassy

2. What does New Zealand have to offer? • Ease of doing business (2nd on the World Bank Ease of Doing Business index) • Low corruption (1st equal with Finland and Denmark on Transparency International’s 2007 Corruption Perceptions Index) • High quality innovation, • broad range of unique, niche technologies • Flexible manufacturing, small production runs, opportunities for customization • Ideal test-bed for new technologies • Primary sector strengths: world class resources and expertise

3. What does New Zealand have to offer (cont.)? • Clean, green image • Immaculate animal health status • Cross-seasonality advantages • Increasing availability of private capital • Small market size facilitates networking and NZ Inc approach • Distance not a barrier to ICT and other high value-added exports

5. NZ is here You are here Where is NZ?

6. Unique Challenges • Remoteness • Size • Small companies • Limited access to capital • Limited business expenditure on R&D

7. Not-So-Unique Challenges • Gulf between R&D and commercialization processes within organizations • Weak linkages between research organizations and businesses. • Firms’ lack of understanding of research organizations’ capabilities and IP • Many firms don’t know their SWOT • Weaknesses in understanding, defining and capturing the true value of IP. • Poor public understanding of wealth creating power of S&T

8. Not-So-Unique Challenges (cont.) • Weak sales and marketing skills • Limited visionary leadership • Inadequate governance structures • Poor strategic planning skills • Weak project management skills • Inadequate design skills • Innovators and investors speak different languages • Life style businesses limit growth opportunities • Lack of large-scale infrastructure

9. Infrastructure Development • Australian Synchrotron • Commissioned 2007 • New Zealand investment in construction and maintenance • Guaranteed access • REANNZ (Research and Education Advanced Network New Zealand Ltd) • Partnerships with National Lambda Rail and Internet2

10. Entrepreneurship Development • NZ Foundation for Research, Science & Technology and MIT • Workshops for NZ CEOs at MIT • MIT MBA students placed in NZ co.s • UCLA Global Access Program • Matches companies and organizations around the world with a team of five FEMBA students • NZ is a participating country • Develop an in-depth strategic business plan • Global Technology Partnership program • Partnership with the Danish Technology Institute • Expert advice on technology issues • International network of 20,000 experts

11. Systems Integrators • Package products and technologies from different sources into whole solutions for government end-users • Provide NZ technology organizations with: • Market knowledge • Regulatory understanding • Scale • Capital

12. Partnerships with US VCs • NZ is a long way from the US, and… • Not a lot of foreign companies get funded • Need US presence • Preferably with US staff • Corporate headquarters in the US • Research facilities in New Zealand

13. VC Partnership Examples • Proacta • Headquartered in San Diego • Anti-cancer compounds • $35M in series B financing • Protemix • Headquartered in San Diego • Compounds for treatment of metabolic disorders • $14.5M in series A financing • CoDa Therapeutics • Headquartered in San Diego • Wound healing and tissue repair • $10M in series A financing

14. Development Partnerships Neuren Pharmaceuticals • Three lead compounds: Glypromate, NNZ-2566, NNZ-2591 • Partnerships include: • US Army (Walter Reed Army Institute of Research) • Pfizer • Metabolic Pharmaceuticals • University of Texas Medical Centre • Duke University AgResearch/Scion • Partnered with Diversa to investigate feasibility of a transportation biofuel industry in NZ that uses wood- and grass-derived feedstocks

15. Development Partnerships (cont) Industrial Research Ltd • BCX-4208 for treatment of psoriasis • Developed in partnership with Albert Einstein College of Medicine • Outlicensed to US company BioCryst • BioCryst partnered with Roche • Phase II clinical trials • HTS-110 • High temperature superconductor mfg spin-out • 20% owned by American Superconductor who provided: • CryoSaver(R) current leads business to HTS-110 • non-exclusive licenses to certain coil patents

16. Beachheads Program • Coordinated by New Zealand Trade and Enterprise (national economic development agency) • Designed to accelerate the offshore growth of New Zealand companies • Provides knowledge, contacts and services of specialist off-shore advisory boards • Provides introductions to potential business partners, customers, key influencers and experts • Primarily focused on high-tech companies

17. Government Partnerships • Science and Technology Cooperation Agreement • First signed in 1974 • For the purposes of enhancing: • scientific and technological collaborations • exchange of scientific and technological information • sharing of facilities • exchange of scientific and technical personnel • Memorandum of Cooperation between the State of Iowa and the New Zealand Government • “to pursue and promote cooperative academic and commercial research and development efforts that may result in mutual benefit”

18. Summary • NZ has technology strengths, but… • Geographically- and demographically-induced weaknesses • International partnerships essential to make good on opportunities • Wide variety of partnership models in use at all stages of the R&D process • US is predominant international partner for technology development

19. Contact information: Brian Young New Zealand Embassy 37 Observatory Circle, NW Washington, DC 20008 (202) 328-4891 brian.young@morst.govt.nz