These sorts of outsized comparisons and poorly devised plans are inappropriate and unproductive and ultimately impede progress. It is important to realize that most of the states in the United States are struggling to develop their biotechnology industries. Beyond the national leaders – California, Massachusetts, Maryland, New Jersey and a few others, most of the states in the United States face many of the same challenges as those seen in the Philippines. Places like California and Massachusetts are home to some of the best schools in the world, the largest and most successful venture capitalists in the world, and the largest biotechnology companies. In between these two states – located on either coast of the USA – are states lacking such stellar schools, life science venture capitalists, and biotechnology workers. Compounding these problems is a diminished tax base stemming from the loss of manufacturing jobs overseas.

The sum of these challenges is that many of the states in the USA have weak R&D infrastructure, a lack of start-up financing and support, and little government support; a situation similar to that faced by countries like the Philippines!

New Economy Strategies has been active in helping develop innovation-based industries such as biotechnology industries in regions across the United States and around the world. The realization that the Philippines shares many of the same challenges as other places we have worked gives us hope that an effective strategy to build on the strong foundations present in this country can be successfully implemented. Just as it would be inappropriate for a small state in the American mid-west to implement an economic development strategy based on strategies that are in place in California, the Philippines must also focus on its unique combination of assets and gaps. An economic development plan must be carefully structured to consider the specific strengths, weaknesses, and opportunities present in the Philippines.

The key to a successful biotechnology economic development plan is to focus on developing strengths and addressing weaknesses by leveraging internal resources. In addition to strengths such as biodiversity, weaknesses such as high energy costs can be used as levers to motivate industry to invest in biomass conversion projects to produce specialty chemicals and energy from farm waste, and thereby turned into opportunities. Many of the initial steps for a roadmap have already been initiated. The Biotechnology Cluster Group has been formalized and has completed a preliminary analysis of strengths, weaknesses, opportunities and threats. Inventories of science and technology activities and export opportunities have been conducted. Hybridigm Consulting and Businessmaker Academy have been holding annual summits that encourage collaboration between biotechnology stakeholders from government, academia, and the private sector. The level of preparedness witnessed in the Philippines exceeds that seen in many US states.

While extensive research and intense community involvement are required to develop a roadmap, a preliminary list of key elements of a biotechnology plan for the Philippines is:

• Answer the question: Why do business in the Philippines?
o What are the unique strengths and opportunities which can give Filipino businesses a competitive advantage?
• Align internal resources
o Identify the individuals in government, academia, and the private sector who are capable of leading innovation and driving change
o Direct needed resources to these leaders of innovation and help them focus their activities on discrete, actionable, and productive initiatives
o Motivate industry to support biotechnology research using direct financial benefits – eg. divert farm waste to produce specialty chemicals and fuel
o Include all parties. Ensure that all Filipinos can see how they will share the benefits and merits of a Filipino biotechnology plan
• Tap external resources
o Help Filipino expatriates contribute their skills and networks
o Help expatriates repatriate
o Help expatriates pool money for a stimulus fund to support the transition from research to development
o Identify opportunities for inward investments into the Philippines
• Provide forums and incentives for collaboration
o Focus on collaboration, not transactions such as tax credits and grants, to plant the seeds for sustained growth

In aligning the stakeholders and creating a comprehensive roadmap with a series of defined objectives and measurable goals, a coordinated implementation plan can be launched and success can be assessed by defined metrics. The situation in the Philippines is not unlike that seen in many US states and regions around the world; the key to realizing the potential of the significant assets present in the Philippines and staking a claim in the global biotechnology arena is to develop a robust biotechnology plan and support its implementation.

Yali Friedman is Chief Knowledge Officer at Washington, DC-based innovation-based economic development firm New Economy Strategies. He holds a doctorate in biochemistry from the University of Buffalo and is author of Building Biotechnology: Starting, Managing, and Understanding Biotechnology Companies. He has been a guest lecturer at Johns Hopkins University, the Tepper School of Business, and University of Buffalo School of Management, teaching classes on the business of biotechnology, and an invited speaker at the Richard Ivey School of Business.
 

Number of biotechnology companies by state. This isn’t mine, so I can’t give you rights to reprint it. Go ahead and redraw it, though. -yali