The Importance of SMEs in the BioHealth Sector 2 The World - PowerPoint PPT Presentation

Riyadh, Saudi Arabia November 6 th , 2013 Richard Bendis President & CEO The Importance of SMEs in the BioHealth Sector

2 The World According to Friedman Hot, Flat, and Crowded

3 Global Innovation Imperative OPEN INNOVATION entrepreneurship natural resource, geopolitical issues & workforce, energy, climate change, environmental, Economic growth is closely related to education/ human capital and innovation Competitive advantages are increasingly tied to foster innovation increasingly important to support collaboration and New Institutions and New Incentives, are Innovation & Commercialization Universities, and Research Institutes is Essential for Collaboration among Small and Large Businesses, Economy and to address Global Challenges Innovation is Key to Growing and Maintaining a MATTERS § Country ’ s competitive Position in the Global § § § §

4 The Six Driving Forces of Change the same place) § Commoditization § The Digital Revolution § Social Media-ization throughout society § Global Open Innovation § The Turbulent World § Acceleration (or running faster to stay in

5 and transformation of ways of communicating and entertainment forms, and need....and interactions, services that meet market products, processes, and knowledge into new INNOVATION is the creation Why is Innovation Essential? - STEVE JOBS A FOLLOWER.” BETWEEN A LEADER AND DISTINGUISHES “INNOVATION collaborating

6 Bill Gates - Microsoft “Never before in history has innovation offered promise of so much to so many in so short a time.”

7 REINVENTION development strategy is best! companies takes time consistency persistence, continuity and Grow Your Own Economic Development Retention Attraction § Economic Development is like a § 4 - legged stool: § § § § § IBED requires patience and § Working with early-stage § A balanced portfolio economic

8 Innovation Ecosystem INPUT ¡ “ INTERACTION ¡FIELDS ” ¡ OUTPUT ¡ Jobs ¡ Human ¡Networks ¡ ¡ ¡ Educa.on/ ¡Human ¡Resources ¡ Wealth ¡ Proof ¡of ¡Commercial ¡ ¡ Wealth ¡Crea.on ¡ Crea.on ¡ Proof ¡of ¡Concept ¡ Networks ¡of ¡Funds ¡ Knowledge ¡ ¡ ¡ Crea-on ¡ Relevance ¡ Regional ¡Clusters ¡ Commercializa.on ¡ ¡ ¡ ¡ University-­‑Industry ¡ Basic ¡ New ¡Products ¡& ¡ Collabora.ons ¡ ¡& ¡Transla-onal ¡ ¡ Services ¡ ¡ Research ¡ Research ¡Parks ¡ ¡ ¡ New ¡Markets ¡ IP ¡Strategies ¡ ¡ ¡ Companies ¡ Federal ¡Laboratories ¡ The ¡concept ¡of ¡the ¡ Innova.on ¡Ecosystem ¡ stresses ¡that ¡the ¡flow ¡of ¡ technology ¡and ¡informa-on ¡among ¡people, ¡enterprises ¡and ¡ins-tu-ons ¡is ¡ key ¡to ¡a ¡vibrant ¡innova-on ¡process. ¡ ¡

9 The number of women-owned firms two years and about half survive five years. 7 out of 10 new employer firms last about cheaper than getting new customers. U.S. firms (23% vs. 9%) continues to grow at twice the rate of all and computer workers. tech workers, such as scientists, engineers, private sector workforce, hire 40% of high Small Business Facts § SME ’ s employ over 50% of the country ’ s § § 70% of SME ’ s say retaining customers §

10 Small Business Obstacles www.entrepreneur.com/dbimages/blog/entrepreneurship-risk.jpg § Lack of willingness or ability to take risks § Time and effort required § Raising capital § Business management skills § Knowledge about how to start a business § Industry and market knowledge § Pressure to keep a stable job

11 Small Business Keys to Success Courage The willingness to take risks Perseverence The capacity to power through tough times Ambition The insatiable drive to reach your goal Understanding The knowledge to make wise business decisions Innovation The ability to improve on existing ideas www.entrepreneur.com/dbimages/blog/entrepreneurship-risk.jpg

12 Change is Inevitable Charles Darwin “ It is not the strongest of species that survive, nor the most intelligent, but the ones most responsive to change.”

13 What is A Road Map.....Why is it needed? A roadmap answers the question “Where do we want to be and how to we get there?” A cluster roadmap provides strategies and action plans to best achieve a vision of the future shared by a critical mass of industry-related organizations. The strategies and action plans are developed according to the unique strengths of the cluster and region as compared to a global market opportunity. • • •

14 How BHI stimulates SME development in Maryland An introduction to BioHealth Innovation an Innovation intermediary

Population: 5.9 million people 59 Federal Laboratories, Centers, & Institutes in Maryland Maryland Federal R&D investment exceeding $12 billion annually JHU and USM represent another $3.5 billion in annual R&D State of Maryland: Federal & University Resources 15 § § §

The Region – Central Maryland - Unrivaled Research Assets - - Unfulfilled Commercial Promise - 16

A Region Rich with Research Institutions

What is A Regional Innovation Intermediary? 501(c)(3) nonprofit sector-led initiative, nor a membership organization 18 An organization at the Center of the region ’ s, state ’ s and country ’ s efforts to: – Align local technologies, assets and resources – Advance Innovation § Regionally-oriented § Private-public partnership, § Market-driven, private § Neither a government

Challenges to Innovation Economy Value Proposition BHI 19 Lack ¡of ¡connec-on ¡of ¡innova-on ¡ Connects ¡regional ¡innova-on ¡ resources ¡ ¡ assets ¡ Lack ¡of ¡an ¡entrepreneurial ¡culture ¡ Develops ¡an ¡entrepreneurial ¡ and ¡C-­‑level ¡execu-ves ¡ talent ¡and ¡support ¡pipeline ¡ Lack ¡of ¡early-­‑stage ¡funding ¡for ¡ AJracts ¡funding ¡for ¡technology ¡ commercializing ¡technologies ¡ ¡ commercializa-on ¡ Lack ¡of ¡spin-­‑offs ¡from ¡federal ¡and ¡ Evaluate ¡commercially ¡relevant ¡ university ¡R&D ¡ federal ¡and ¡university ¡technology ¡

20 BHI Technology Focus § Therapeutics § Diagnostics § Medical Devices § Healthcare Services § E-Health § Mobile Health § Electronic Medical Records § Health Informatics § BioHealth Cyber Security

BioHealth Regional Innovation Cluster Assets 21

22 BHI: An Innovation Intermediary that Connects Connects ¡Private, ¡ Public ¡and ¡ Academic ¡Sectors ¡ ¡ Connects ¡ ¡ ¡Bio-­‑ Connects ¡Central ¡ Health ¡Cluster ¡ ¡ Maryland ¡ Communi.es ¡ ¡ Industries ¡ Connects ¡ Regional, ¡ Na.onal ¡and ¡ Global ¡Markets ¡

23 FOUNDATIONS Regional BioHealth Ecosystem Partners ACADEMIA ¡ INDUSTRY ¡ • R ESEARCH /T2 ¡ • P ROFIT ¡ • L IFELONG ¡L EARNING ¡ • P ROCESS ¡ • E CONOMIC ¡D EVELOPMENT ¡ • P RODUCT ¡ INSEPARABLE ¡ MISSIONS ¡ GOVERNMENT ¡ • S USTAINABILITY ¡ • E CONOMIC ¡G ROWTH ¡ • I NFRASTRUCTURE ¡ SUPPORT ¡ • C OMMUNITY ¡ INVESTMENT ¡ • E CONOMIC ¡ POLICY ¡ • R EGIONAL ¡ COLLABORATION ¡

BHI Partners and Sponsors 24

BHI Board of Directors Cassidy Turley Senior VP of GO Qiagen Thomas Street ACAO MoCo Government Daniel J. Abdun-Nabi CEO, Emergent BioSolutions David M. Gillece (Secretary) Regional Managing Principal Scott Carmer (Chair) BioHealth Innovation, Inc. Exec. VP of Com. Operations Medlmmune Jens Eckstein President SR One (GSK) Rick Ivey Vice PresidentR&D BD Diagnostics 25 Cynthia L. Collins CEO Douglas Liu President & CEO Michael J. Baader, Esq. EAGB Managing Director Venable LLP William E. Kirwan Chancellor University System of MD Ronald J. Daniels President Johns Hopkins University J. Thomas Sadowski President & CEO Scott Dagenais Richard A. Bendis Senior Vice President M&T Bank William G. Robertson President & CEO Adventist Healthcare Kenneth Carter Chair Noble Life Sciences David Mott General Partner New Enterprise Associates Clarient, GE Healthcare

BHI Organizational Chart 26

evaluating market-relevant research and product development opportunities of emerging entrepreneurs, companies and their science or technology. 27 BHI Commercial Relevance Advisory Board § 31 experienced biohealth professionals assisting BHI in § The CRAB will help determine the commercial applicability

PROOF OF CONCEPT PROOF OF COMMERICAL RELEVANCE Innovation Paradigm Shift “It Works To Solve A Problem” (Market Pull) “It Works!” Laboratory Push (Technological Feasibility) 28 “I ’ ll Buy It”

29 Innovation Capital Valley of Death POR / Stage Seed/Start-Up Early Later Pre-Seed Founders, FFF Venture Funds Angels, IBED, SBIR Bootstrapping Accelerator Seed Funds Source Crowdfunding M&A, IPO $0K $500K $2.5M $5.0M Demand “VALLEY OF DEATH” Supply Secondary Funding Funding Gap Gap

30 BHI Innovation Capital Map