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Country case: Malaysia Issues on Research, Development and Commercialization

Regional Higher Education Conference 3-5 Dec, 2007 . Country case: Malaysia Issues on Research, Development and Commercialization. Prof Asma Ismail, Director, Institute for Research in Molecular Medicine (INFORMM), Health Campus,USM, 16150 Kubang Kerian, Kelantan and

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Country case: Malaysia Issues on Research, Development and Commercialization

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  1. Regional Higher Education Conference 3-5 Dec, 2007 Country case: MalaysiaIssues on Research, Development and Commercialization Prof Asma Ismail, Director, Institute for Research in Molecular Medicine (INFORMM), Health Campus,USM, 16150 Kubang Kerian, Kelantan and Suite 110, Eureka Complex, USM Minden, Penang

  2. The Global agenda © DAR2003 Knowledge era Biotechnology era The need to move to K-economy IT era Increasing competition Technological era Agricultural era Hot Spots 21st century (Future) Primitive era 650 1750 1950 2000 Modified from Richard W Oliver, The shape of things to come

  3. Stages of economy for Malaysia From resource-driven to Innovation-driven • “As nation develop, they progress through a number of stages in terms of their characteristic competitive advantages and modes of competing” Investment -driven economy Innovation -driven economy Resouce -driven economy Knowledge-based Rubber, palm oil etc Multinationals at free trade zones • - Porter M, Enhancing the microeconomic foundations of prosperity © DAR 2002

  4. New R&D challenges • Challenge for R&D in the country would be how to move towards the requirements needed to succeed in the Innovation-led economy: • Technology-driven (10-15 years) • Dependent on our researchers • Own original scientific discoveries that will enhance the competitiveness and provides the leading edge for the country. • Set new trends in technology and create our own technology platforms • Ability to combine scientific discoveries and technology platforms to create new innovations that can create an impact to society and the global market; undergo translational research • Market-driven (3-5 years) • Dependent on our business community/government • Dependent on funding • Buy existing technology and innovate • Innovation-led economy • Technology driven • Market driven

  5. Challenges in Innovation-led economy that affects R&D • Political will • Create policies that support R&D, innovation and entrepreneurship • Human capital • Sufficient number of innovative, creative and relevant human capital (Knowledge-workers) • Originality and IP • Must show originality and creativity in offering solutions to problems with the generation of intellectual properties/ patents • Change in the R&D approach • Harness the human capital to create an environment of innovative culture • Work with the end in mind • Funding • Funding to drive R-D-C-E • Funding to buy existing technology (market-driven)

  6. ‘Being a global player is unavoidable for a country that wants to develop’ - Abdullah POLITICAL WILL R&D being the National Agenda • Malaysia has the political will to ensure that R&D is the national agenda to drive the K-economy of the country (O.5% of GDP (6%). • The government has provided a lot of national grants (at least RM 1.7 billion from 2006-2010) to promote R&D&C • But is the amount ENOUGH to promote commercialization of research products

  7. Moving towards successful K-economy: R&D Challenge PHASE 1 Making scientific discoveries Phase 1: Consolidating Research R Research discoveries, acquisition of technologies Applied and fundamental grants D PHASE 2 Develop prototype Phase 2: Consolidating Development • Design, engineering and technology integration Development grants, pre-bridging grants C Phase 3: Consolidating Commercialization Patent, Marketing, Entrepreneurship and licensing PHASE 3 Commercialize Techno fund Phase 4: Consolidating Knowledge-based enterprise (Research Park) E Smooth and continuous flow of R-D-C-E PHASE 4 K-enterprise • Spin off companies/ JV companies Venture Capitalists, Innofund

  8. Pitfalls and challenges: Status of Research & Development in Malaysia R Phase 1: Consolidating Research Need to improve the number of publications Need to improve impact factor Need to improve citations D Phase 2: Consolidating Development Phase 3: Consolidating Commercialization/Innovation/Technology licencing C WHY are we not there yet? • Commercial arm of the University • Entrepreneurship • Spin-off companies • JV Companies • Licensing E ???????

  9. WHY are we not there yet?Human capital Not sufficient K -workers! Need 60/10,000 pop National Survey of Research and Development 2004, MASTIC

  10. Expectations of Modern Universities in the Knowledge-era • Role of Universities include the need to train the human capital to be relevant and support the innovative culture • Expectations of Modern Universities • Generate knowledge • Disseminate knowledge • Facilitate translation of knowledge into tangible and intangible products • Universities are expected to undergo Research-Development-Commercialization of R&D and setting up of Knowledge-based enterprises in the Research Park • In Malaysia, we now have Research Universities that should lead the way to generate IP and wealth for the country and enhance the quality of life of the people.

  11. If patents indicate originality/creativity Indigenous Technology We lacked originality in performing R&D Fadzilah Ahmad Din. National S&T Indicators in Malaysia: Where are we now?. MASTIC, MOSTE, National Symposium on S&T, July 28-30,2003. We lacked efficiency in producing patents

  12. Patents • Are people aware about IPR? • We need to encourage IPR awareness and the patent culture. • We should not view patents as a number game. • When we patent we should use it to design and develop new innovations. Patents must be used to generate income. It is used to generate K-based industries for the country. The iceberg phenomenon

  13. Commercialization of research products • Commercialization of R&D products is not a simple process • It is a complex exercise that must address several issues before we can take the technology/product/process to the market

  14. Commercialization of Knowledge Idea (scientific discovery) + Innovative Technology • Undergo translational Research • Research theses • Patents and IPRs • Commercial viability • Business plan • Win awards UNIVERSITY’s ROLE Lab model Evaluate (lab-level) DISCOVERY COMPANY’s ROLE Issues: Since industry not ready, univ has to do both roles Prototype • Business plan • Win awards Packaging Product DEVELOPMENT AND INNOVATION Evaluation (multi-centres) Technology Licencing Courtesy of Sam Teng Wah, USAINS

  15. Benchmark with UK 2004 UK Patent-Investment ratios for 11 sectors http://www.innovation.gov.uk/rd_scoreboard/patents_ratio.asp No of disclosures differ For different areas of focus Ave 2.8 million pounds/patent RM 20 million/patent Investment of RM 1760 million, Malaysia should have 88 patents But only 25 patents in biotech Most expensive!

  16. Reality check: Patent vs licencing • In USA the ratio of commercialization to patent is 1:3.5 • Since we are spending RM1,760 we should hypothetically produced 88 patents ( 25 technology licencing for the country or 7 biotech licencing for the country) • Hence the lack of technology licencing and the setting up of K-based industries due to insufficient funding.

  17. Reality check: Financial investment • Business community: • Must believe that knowledge can be turned into a business • Must have strong network of angel investors • Must perform research as the basic building block for any K-based industry

  18. Reality check: Financial investment • Currently Malaysian business communities lack the knack for K-based industries. Majority are still into property and manufacturing. • They will only come in at the latter part of research when you have developed • a product or devise or services or a process to undergo technology licensing or direct selling • Venture Capitalists as investors are also not adventurous (does not take risks).

  19. Reality check: Need to change paradigm to do research • We must meet the industry half way. • We must understand that in the new economy, a discovery has no value until it can benefit the public. Publishing and winning gold medals for the products created are not enough. It has to be commercialised. • Compromise: Work with the end in mind. • Cater for the needs of the client. • R&D product would be more commercially viable • Experimental design strategy must be from Z to A rather than A to Z.

  20. Paradigm shift: The New Research approach • Strike a balance between fundamental and applied in order to undergo • Translational Research (Move R to D to C) • Work in multi-disciplinary clusters Generate new industries Produce relevant scientists and postgraduates to be drivers of K-economy • Generate Patents • Publications Create new Scientific discoveries Enhance quality of life INNOVATIONS STRATEGIC FUNDAMENTAL RESEARCH Z A + Work with end in mind Check market/client requirements Develop Advances in Technology • Incentives for scientists • Incentives for industries Consolidate existing industries Z To ensure products remain technologically competitive

  21. The Innovation system at USM R • Research • Development • Commercialisation • Enterprises (knowledge-based) • ResearchPark (in-campus ‘industrial alliances’) D C E (P) Innovation -driven Global vs Local © DAR2003

  22. INFORMM’sTechnology development and design strategies at MITD for diagnostics

  23. Working from Z to A (end in mind): Market foresight requirements for rapid diagnostics Criteria for Design and development • Rapid • Specific • Sensitive • Easy to perform • Cost effective • Can be transported without cold chain • Dot EIA • Dipstick • Sensor technology • Thermostabilised PCR • PCR DNA chip Scientific discovery Technology platform Patent separately

  24. Contribution to K-economy: Molecular Diagnostics Rapid protein or DNA - based diagnostics for the following diseases • Typhoid • Cholera • Campylobacteriosis • Filariasis • Tuberculosis • Dysentery • Paratyphoid • Nosocomial infections • Pharmacogenomics (Drug response to TB) Focus on diseases relevant to S.E Asia

  25. ORIGINAL DISCOVERIES Commercialization Track record: Antibody-based Biotech kits 6 kits commercialised 2002 1996 2005 1994 Bancroftian filariasis -2005 Pan filariasis -2006

  26. Planned strategic approach for creation of technology platforms( Road map for typhoid diagnosis ) Thermostabilised PCR Universal PCR Chip (Nanotechnology) Immuno-chromatography Dot EIA (Require cold chain) (No cold chain) Scientific Discovery 50kDa 1986-1991 EZTYPHI carrier DNA TYPHIrapid™ 15 min 1998 2007 2005 2004 1997 1994 TYPHOID DIAGNOSIS

  27. Commercialization of TYPHIDOT – a rapid diagnostic test for typhoid R&D is necessary to make the product technologically competitive Pakistan India Philippines South Africa Guam Papua New Guinea Thailand Vietnam Egypt Turkey United Arab Republic Indonesia Bangladesh China Sudan Cameroon Nigeria USA • Outputs • 33Publications • 7 Patents • Creation of 500 jobs • Supported local industries • Generated income • Won >50 awards Global Distribution of Typhoid Fever

  28. Create new technology platforms for molecular diagnostics Thermostabilised PCR USM invention M. Ravichandran et al Boil sample to obtain DNA 3 min 40 min 80 min 100bp DNA ladder marker Sample DNA + water (2 steps) Add 2 ul lysate + 18 ul water PCR product 415bp Amplication of target genes • No cold storage • Only two pipetting steps • Does not need PCR skilled personnels • Cheap (USD 10 to now USD 1) Gel electrophoresis analysis Duration: Approx 2.5 to 3 hours Require collaboration of strengths

  29. Thermostabilised PCR kits 2003 2004 2005 2006 2007 EZEBV Amp ITEX 2004 Gold medal WIPO Gold Medal KASS Award 2004 Geneva 2005 Gold Medal EZDysentry DNA ITEX 2005 Silver Medal EZVRE Amp ITEX 2005 Gold medal Geneva 2006 Gold Medal EZCholera Amp ITEX 2003 Silver Medal Cholera Genosensor A total solution SOLD EZCampy DNA Expo S&T 2005 Silver Medal Geneva 2006 Silver Medal EZTyphi Carrier DNA ITEX 2005 Gold medal ITEX 2005 Best Invention in Biotechnology Geneva 2006 Silver Medal EZDNA Amp Expo S&T 2003 Silver medal Commercialized by MBDr M’sian Patent: PI 20051471 EZAmp Octaplex Cholera ITEX 2004 Gold medal WIPO Gold Medal Geneva 2005 Gold Medal SOLD EZTB Amp ITEX 2004 Silver medal Commercialized by MBDr Courtesy: M Ravichandran, USM

  30. Conclusion • Development of technologically competitive product/device/process/expertise is no longer a luxury. • It is a necessity • It would require collaboration with other strengths on a global scale to stay ahead of the game • Malaysian R&D must be relevant, accessible, bring in respect and profits and not an economic drain ICT quad scan Universal PCR chip Genosensor

  31. Acknowledgements • Committee for National Strategies for Biotechnolgy • Committee for Human capital development – ASM • Committee for Strategic plans for KPT on R-D-C Issues

  32. ISO 9001:2000 certified UK, France, Malaysia, Italy, Germany THANK YOU INFORMM Health campus INFORMM Main campus asma@kb.usm.my Http: www.informm.usm.my Institute for Research in Molecular Medicine

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