Alexandra Waluszewski
American Biotechnology Laboratory, September, 2004
How to get a biotech cluster out of beet sugar juice contaminations inbeet sugar juice
Is there any corner of the OECD world thatwhich does not claim to that they are the host of a biotech cluster? We have not heard anything from Alaska yet, but throughout the OECD world, both policy and venture capital people are eager to present greatly optimistic plans onfor building dynamic biotech clusters. Certainly it must be tempting to try to imitate the outstanding role model, Silicon Valley. But is it really possible to artificially create and speed-up natural processes – often including afterafterincluding with many decades of industrial and academic problem solving in behind?
One of the places that actually haves what any politician is dreamsing about; – a rapidly growing and prospering biotech cluster, – i is Uppsala in Sweden. At least it is presented as such in both national and international media, with Nature (October, 2001) as one of the most prominent references. “The Uppsala biomedical cluster has continuously answered quality challenges and competed favourably with much larger global regions.” The most common explanations for this phenomenon, along is, together with the support from of venture capitalists, is the restructuring that Pharmacia underwent in the latter half of the 1990s as a direct result of its merger with Upjohn. “By spinning off some of its local operations, Pharmacia has acted as a catalyst for the current biomedical boom. Former Pharmacia scientists and managers have been freed-up to channel their expertise and talents into start-up companies and projects.” (Nature October, 2001). Thus, the Uppsala biotech cluster seems to be a living example of howthat a few critical events can quickly and easyily can fuel the emergence of hundreds of new biotech companies.
It is a bit sSadly, though, the to ruining a good sstory is not so rosy; c, but a closer scrutinityscrutiny reveals that a rather different version. No Phoenix has risen Ffrom the corporate ashes supported by a rapid influx of speeded venture capital no Phoenix rised. First, few new Uppsala start-ups were directly related to the merger. Instead, most of them had existed as projects within healthy and stable larger companies and academic units for many years – frequentlynot seldom overfor decades. Second, when they became spin-outs, it was in generally without connection to the Pharmacia merger. Third, the enterprises populating the Uppsala biotech clusters are more likely better counted in some douzens thaen houundreds. Fourth, the label “biotech cluster” hidesencompasses many different activities withinincluding biotech tool supply, pharma, medical equipment and esthetical products.
But is this shall we consider this as a disappointment? Or does the alternative picture, viewed catched through by focusing on how business and sciencecompanies an academic research units have combined their own and others’ resources over time, time and space, reveal an even more impressingve story? At least, we get a view of economic and scientific processes that are far too complex to be influenced by single events. And, we get a picture of how different scientific and business problem-solving processes going on in science and business can, when cthey clashonnected, create new cross-roads of old paths.
At least, is a story with its roots in a time when no one ever had heard about “proteomics” and “genomics”, but when the scientists at Uppsala Universtiy interacted intenstly with an international research community and with industrial counterparts on issues such as nucleid acid chemistry and separation technology.
Who,for example, could for example forecast that the Swedish Sugar company’s and Uppsala University’s Institute of Biotechnology’s strugglinges with beet sugar juice contamination s in beet sugar juice in the mid 1940s,shwould be one of the important processes behind the have an important impact on the development of Uppsala’s the biotech industry in the Uppsala region? And, furthermore, onthe a scientific protein separation technology that still is the dominanting one world-wide? And, furthermore, on the development emergence of a biotech industry in the Uppsala region in Sweden? (However, no one shall consider the following example as an explanation for the emergence of this or any other biotech cluster. Instead,It is only an it is an illustration of the character of the myriad of processes that over time influences each other over time, and, although related only in certain aspects, sometimes creates imprints like new technologies, new commercial solutions and sometimes also emerging industrial regions.)row
of many important processes that together can result in such imprints.)
It was in order to solve the beat sugar juice contaminations that tThe Swedish Sugar Ccompany invited approached researchers at the Institute of Biochemistry at Uppsala University to solve the problems. Along with Besides a group of skilled and internationally engaged researchers,, this unit could also provide, not least due to the ability to use equipment such as theboth the ultracentrifuge and electrophoresis in investigating thefor investigations of characteristics of large proteins. The foiunding that the beet sugar juice was contaminated The
One of the responsi
by a bacterium that produced dextran (at that time known sincefor at least a century), was not only interesting for the Swedish Sugar Company. The knowledgeinsight that this – and . Further investigation oftype of glucose did not interfere with human antibodies certainly made sense in a research department that, like many other biomedical and military research environments worldwide, was struggling with the issue of how to handle the lack of blood plasma in wartime. When it was discovered that dextran, aside from its beneficial physiological composition, was neutral to the human antibody system, trials were initiated to develop an application as a plasma substitute. In 1943 the Uppsala researchers approached Pharmacia was approachedwith the possibility tof developing a blood plasma substitute and in 1947 the product Dextran (later called Macrodex) was launched – for decadesWhen biotech researchers from Uppsala University wereas invited to solve the problem, they brought in these experiences into two new application areas. One resultedt in the development of the blood plasma expander Dextran (for decades one of Pharmacia’s cash-cows, and today one of Fresenius Kabi’s main products).
In the early 1950s, when Institute of Biochemistry researchers were struggling to improve the separation medium used in columns, the experiences offrom the Swedish Sugar Ccompany’s ies contamination problem became valuable again. A wWork was initiated on replacing cellulose composition with cross-linked Ddextran was initiated, lead by a researcher at the Ddepartment in interaction conjunction with a, and a colleague who had moved to Pharmacia. RThese researchers were greatly impressed with cross-linked Dextran’s abilitycapability as a separation mediaum made great impression on the researchers. The result was a new separation gel that could separate bio-material after molecule size, later on named Sephadex (an abbreviation for separation, Pharmacia and dextran). Presented to Nature 1959, it was as a totally new method of separating proteins and other bio–material after molecule size. Despite a rather cool reaction from the academic world, and despite some initial management hesitation, Pharmacia decided to pursue go for the new solution and established a new business unit for biotech supply, Pharmacia Fine Chemicals. For dDecades later, gel’s based on cross-linked Dextran are still are Four decades later gel’s based on Dextran still are essential in separation technology. However, after contributions from many different parts of science and industry all over the worldwide, today this technology is – but today embedded into a wide variety of other technical solutions and accompanied by lots of many other analytical methods. Furthermore, the business unit behind the first commercialisation haves both grown and changed radically (among others from Pharmacia Biotech over Amersham Biosciences to become a unit within GE Health Care). Finallythe business unit handling this technology have changed several times (among others from Pharmacia Biotech over Amersham Biosciences to GE Health Care). Last, but not least, the Uppsala is part of this unitunit is currently nowadays accompanied bywith some douzens of biotech and other life science enterprises – some a result of their own spin-outs, others as an outcome of other, not at all unrelated processes.
If these and other experiences can be translated into any general receipe for the creation of “prospering biotech clusters”, it will be far from anynot rely iance on instant ingredients. Visions aboutof regions that rapidly breed’s new profitable businesses ifwhen science just is fertilized with smart venture capital, are probably best treated just as day-dreams. A reciepe for necessary conditions (which is not a guarantee for success) can instead be formulated as followsing: it is:
From the small group at Pharmacia working with Sephadex, a new business slowly emerged (despite initial resistance both from the academic world and from industry); development of chemicals, instruments and methods for separation of bio–material. Four decades later this business unit have changed several times; merged with LKB and Amersham Biosciences, spinned-out several new biotech businesses, to become a new unit within GE Health Care in 2004. And four decades later gel’s based on Dextran still are essential in separation technology – but today embedded in a wide variety of other technical solutions and accompanied by lots of other analytical methods.
The other one resultedt in Sephadex, which, despite an initial resisteance both from the academic world and the from industry, became commercialised in cooperation with Pharmacia. Four decades later this gel still is essential in separation technology – but today is embedded within a wide variety lots of other technical solutions and accompainied withby lots of other analytical methods.
If these and other experiences of development patterns behind “prospering biotech clusters” can be translated to any general receipe
1.GetMix two main ingredients (home-grown or bought)) to be mixed:
a)Skilled, dedicated researchers, with intricate scientific problems
b)Skilled, dedicated business people, with severe industrial problems.
for the creation of such, it is:
2.Add financing capital without reclaims on short termime profit, and be ware of:
a)Venture capitalist’s that, in order to speed-up the commercialisation process, forces the development process intotowards solutions that haveare short-term profitabilityle in from a short-term perspective and/or such that appear valuable from a supplier perspective.
b)Customers’ that are not desperate enough to engage in development of user applications of technological solutions that neither they nor any other users have heard of before. Be especially warey of those that falter if the application development process requires more endeavours’ and takes more time than initially planned.
3. Spice with some fortune and let it stir for severalome decades or half of a century.
Then, enjoy all the commercialised solutions appearing in completely new applicationapplication areas.
If there is any general receipe for the creation of a prospering biotech cluster, it is:
bring in a large great portion of basic resear
Bring in a large portion of basic research.
2.. Aadd a varied bunch of problem solving activities carried out in direct interaction
between science and industry.
Add an assortment of economically healthy industries and financers’ willing to invest in long term product development
3.4. add an assortment of economically healthy industries willing to in invest in long-term product development
add a great portion of long-term venture capital
Sspiece with some fortune
Let it stir for some several decades or half of a century. Then, enjoy all the commercialised solutions showing upappearing in completely new application areas.