Lisa P. L. Lim Singapore’s biomedical is a PhD student at the Institute for Manufacturing, Cambridge University. She is researching science sector development on bio-manufacturing, process capabilities and biotechnology business models. strategy: Is it sustainable? Prof. Michael J. Gregory Lisa P. L. Lim and Michael J. Gregory is Head of the Institute for Date received (in revised form): 17th March, 2004 Manufacturing and the Manufacturing and Management Division of the Cambridge Abstract University Department of This paper outlines the strategic efforts undertaken by Singapore to establish its national Engineering. capability in the biomedical science sector, reviews the commercial base as a result of these efforts and compares Singapore’s approach with the UK and US development models, discusses the challenges that Singapore faces and raises some questions on the long-term sustainability of the sector. Although Singapore is a small country in terms of geographical size, its economic size is significant, with gross domestic product (GDP) and GDP per capita of US$112bn and US$25,200 respectively in 2002. For the past 40 years, the country has achieved an average annual GDP growth of 8.4 per cent by focusing on manufacturing and productivity improvements. Biotechnology has been earmarked as the next wave of technology that will sustain the country’s economic growth. For almost two decades, Singapore has focused its efforts on building capabilities in the biomedical science area to exploit biotechnology and traditional chemistry-based technologies in drug discovery, development and production. The Keywords: Singapore, main principle of Singapore’s strategy is to locate a sector targeted for growth and then to biotechnology, cluster, focus its efforts on building the key pillars to support the sector; identified in this case to be strategy, business model research, early stage funding and specialised infrastructure.
INTRODUCTION traditional chemistry-based technologies For the past 40 years, Singapore has in drug discovery, development and achieved an average annual GDP growth production. The driving force behind this of 8.4 per cent, based on its ability to initiative is Singapore’s Agency for renew its manufacturing base and increase Science, Technology and Research productivity year on year. As Singapore (AÃSTAR) and the Singapore Economic has grown, the country has moved from Development Board (SEDB). By the end low-value, high-volume activities, such as of 2003, the biomedical science sector textile manufacturing, to oil refining and contributed SGD11.3bn in manufacturing later disk drive production. Over the past output to the country’s GDP, a rise of two decades, Singapore has earmarked the 15.9 per cent over 2002. biomedical science sector as one of the key pillars for economic growth as the DEVELOPMENT STRATEGY country transformed itself from an export- Singapore’s vision is to develop itself as driven manufacturing economy to one the ‘Biopolis of Asia’ where companies that is global and knowledge-based. The will locate their research, development, biomedical science sector is identified as a production and headquarter activities, Lisa Lim sector that comprises four industries, allowing Singapore to capture activities Institute for Manufacturing, namely pharmaceuticals, medical across the biomedical science value chain. Cambridge University, Cambridge CB2 1RX, UK technology, biotechnology and healthcare The development strategy for the services. Singapore has focused its efforts biomedical science sector in Singapore Tel: +44 (0)1223 339739 Fax: +44 (0)1223 339975 on building capabilities in the biomedical aims to strengthen Singapore’s human E-mail: [email protected] science area to exploit biotechnology and intellectual and industrial capitals. This is
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done through establishing world class developmental biology, structural research institutions and specialised biology, infectious disease and cancer research infrastructure and providing biology. The institute has 38 independent funding for early stage businesses through research groups with more than 400 staff a government-supported body. members.
Biomedical science research institutions Bioprocessing Technology Center (BTC) BTC was established in 1990 and aims to Singapore’s strategy to grow the build a technology base to support biomedical science sector is based on four commercial production of focus areas: biotechnology, medical biopharmaceuticals. BTC is also tasked to technology, pharmaceuticals and develop personnel capabilities by healthcare services and delivery (Figure providing training to the local talent pool. 1). These four sectors share many BTC’s core strengths are in DNA, synergies, facilitating the discovery, peptide and proteomic technology, gene development and commercialisation of expression and viral vector, cell culture, healthcare products and services to microbial fermentation, protein diagnose and treat human diseases, and are characterisation and purification. supported by research in genomics, Currently, BTC has a cGMP facility molecular biology, bioinformatics, designed to produce biologicals under bioprocessing, bioengineering and US-FDA and EU regulatory guidelines. nanotechnology and chemistry. A*STAR, funded by the AÃSTAR, funded by the Singapore Singapore government, government, plans to invest SDG1.2bn in plans to invest Genome Institute of Singapore (GIS) SDG1.2bn in public public biomedical sciences research GIS was established in 2000 and pursues biomedical sciences through the following research the integration of technology, genetics research institutions (Table 1). and biology towards the goal of individualised medicine. The scientific Institute of Molecular and Cell Biology focus is to investigate post-sequence (IMBC) genomics, to understand the genetic IMBC was established in 1987. Currently, architecture of pan-Asian populations IMBC concentrates on the development with emphasis on cancer biology, of R&D capabilities in Singapore by pharmacogenomics, stem cell biology and concentrating on basic research in the infectious disease. There are currently 160 following fields: cell biology, staff members in the institute.
Pharmaceuticals Medical technology Genomics
Molecular biology
Bioinformatics
Bioprocessing
Bioengineering
Figure 1: Singapore Nanotechnology Healthcare services Biotechnology focus area in biomedical Chemistry and delivery sciences Source: Singapore Economic Development Board (SEDB)
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Table 1: Establishment of research institutions and supporting infrastructure in Singapore
Year Basic research Clinical research Downstream technologies
1987 Institute of Molecular and Cell Biology (IMCB) 1988 1989 1990 Singapore National Eye Center (SNEC) Bioprocessing Technology Center (BTC) 1991 1992 Protein and Proteomics Institute (PPC) National Skin Center 1993 Center for Natural Product Research (CNPR) Singapore Institute of Manufacturing Technology (SIMTech) 1994 1995 1996 Bioinformatics Center (BIC) 1997 Institute of Materials Research & Engineering; Lilly-NUS Center for Clinical Pharmacology, Laboratories for Information Technology (LIT) National Cancer Center (NCC) 1998 Cancer Therapeutic Research Group (CTRG) Institute of Chemical Sciences (ICS) 1999 John Hopkins Singapore (JHS), NUS Drug Study Center 2000 Genome Institute of Singapore (GIS) National Neuroscience Institute (NNI), National Chemical Process Technology Center Heart Center (NHC) (CPTC) 2001 Bioinformatics Institute (BII) 2002 Institute of Bioengineering and Nanotechnology (IBN) 2003 Center for Molecular Medicine
Sources: Wess,1 SEDB
BioInformatics Institute (BII) Singapore as part of the country’s vision Specialised BII was established in 2001. Its focus is to capture all aspects of the biomedical infrastructures for building Singapore’s capabilities in science value chain. Through these research and production activities are bioinformatics. BII’s research focus facilities, Singapore aims to provide ‘plug being built in Singapore centres around knowledge gained from and play’ facilities for both local and as part of the country’s biological data, exploiting high-end foreign companies. The two major vision to capture all computing in biomedicine, advancing components of this infrastructure are the aspects of the molecular imaging of biological processes, Biopolis and Tuas Biomedical Park. biomedical science modelling of drug design and delivery, The Biopolis, an integrated R&D value chain computational proteomics and systems complex, represents the first stage of a biology. There are currently 80 staff SGD15bn project, One-North, that will members in the institute. span 15 years and aims to cultivate biomedical research and other research- Institute of Bioengineering and based industries. Costing SGD500m, the Nanotechnology (IBN) Biopolis will be made up of seven IBN was established 2002 and focuses on buildings when completed, with a research at the interface of bioengineering combined area of 185 3 103 m2 (2 and nanotechnology in the areas of million square feet). Its three principal nanobiotechnology, delivery of drugs, objectives are genes and proteins, tissue engineering, artificial organs and implants, medical devices, as well as biological and • to be a focal point for scientific talents; biomedical imaging. • to integrate and synergise the Specialised infrastructure capabilities and resources of research Specialised infrastructures for research and institutes and to encourage cross- production activities are being built in disciplinary research;
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• to bridge the private sector and public entrepreneurship and the development of sector research work by creating an the local commercial base. environment that foster exchange of ideas and close collaboration. BioÃOne Capital BioÃOne Capital is the dedicated Biopolis is being marketed by Biomedical investment arm of the SEDB. Singapore as a biomedical research hub The objectives of BioÃOne Capital are: with shared facilities that will bring economies of scale and operation • to make strategic investments; efficiencies to its tenants. When completed the facilities will include • to bring key scientific and economic specialised equipment and services such as contributions to Singapore’s flow cytometry, X-ray crystallography, biomedical science sector; and nuclear magnetic resonance, electron microscopy, DNA sequencing, • to achieve the goals of generating proteomics, histology, laboratory supplies, highly skilled jobs as well as media preparation, glassware washing and transferring technology and expertise animal resource centre. The current to Singapore. tenants of Biopolis include the five public research institutions, biomedical R&D Under BioÃOne Capital, a SGD1bn companies, such as Norvatis Institute for Biomedical Science Investment Fund Tropical Disease, Vanda Pharmaceuticals (BMSIF) has been set aside to invest in and Paradigm Therapeutics, and some of Singapore-based joint ventures, overseas AÃSTAR’s operations, such as the biotechnology companies and local start- Biomedical Research Council (BMRC), ups over a period of five years (2001– Science of Engineering Research Council 2005). BMSIF makes direct equity (SERC), Exploit Technologies Pte Ltd investments in companies worldwide, co- (ETPL) and EDB Biomedical Science invests in Singapore-based joint ventures, Group (BMSG). and invests in Singapore based Tuas Biomedical Park is Tuas Biomedical Park is designed for companies/start-ups and in overseas a specialised production production activities in the biomedical biomedical sciences funds (Table 2). area offering a ‘plug and play’ facility for science sector. This specialised production BMSIF started investing in US and companies area offers a ‘plug and play’ facility for European biomedical companies in 1987, companies. Tuas Biomedical Park usually with a minor participation of up represents Singapore’s vision to capture to 10 per cent.1 BioÃOne Capital now the production aspect of the biomedical manages funds in excess of US$650m and science value chain, in line with the has strategic investments in over 80 country’s intent to sustain production companies worldwide (Table 3). In activities, which currently contributes 25 general this is a strategy to build up the per cent to the country’s GDP. Some of critical mass for the science base in the world’s largest pharmaceutical Singapore by asking the investees to company, such as GlaxoSmithKline, commit themselves to set up a joint Merck, Pfizer, Schering Plough, Aventis, venture or a subsidiary in Singapore as Wyeth and Baxter, have already located soon as they are ready to expand. their production base to Singapore. The investment focus of BioÃOne Capital has shifted over the years from Early stage funding overseas to a more local and strategic The Singapore government provides development focus now. As of year 2000, capital for start-ups in the biomedical 77 per cent of the SGD1bn investment science sector in the form of equity fund is invested in Singapore-based funding and government grants. This activities, compared with only 23 per cent initiative is crucial to foster in 1991 (Figure 2).
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Table 2: Key selection criteria under BMS Inc. and BMSIF funding scheme
BMS Inc. BMSIF
• Potential to produce commercially viable products and services in the field of biomedical • Cutting edge technologies sciences • Outstanding management • Products and services that will differentiate the venture in the marketplace and provide • Global opportunities competitive advantages • Sound business models • Solid propriety position supported by good scientific fundamentals • Singapore value – technology transfer, Industry • Substantial activities in Singapore that will entail the hiring of credible managers and development, creation of employment and research scientist over a specific duration, with intermediate milestones for verification opportunities • Clear development plan with specific milestone to be able to attract subsequent source of funding or partnering opportunities
Source: EDB Investment
Seed capital encouraged innovation among local The Start-up Enterprise Development institutions and formation of new Scheme (SEEDS) aims to provide equity ventures, and has also attracted established financing for start-ups in the seed stage of firms to the region. enterprise formation. This scheme is administered by the SEDB. Under the Start-ups/new ventures SEEDS scheme, SEDB will match dollar Currently, there are more than 50 More than 50 companies are being for dollar every third-party private sector companies being incubated in Singapore, incubated in Singapore cash injection to a company, up to a of which more than half have foreign maximum sum of SGD300,000. founders and have third party investors.2 Biomedical Sciences Innovate N’ Among the most common routes to Create (INC) an SGD25m fund under commercialisation of research ideas is the BMSIF, was created in 2002 to provide development of spin-offs from a research seed equity between SGD250,000 and institute or university. In Singapore, SGD2m to promising local biomedical companies that have been formed from start-ups. local research institutions include the In 2003, a new Biomedical Sciences following: Proof-of-Concept Scheme (POC) was created to help scientists at local research • MerLion Pharmaceuticals originated institutes to develop early research ideas from the Center for Natural Product and to bring them to market. The scheme Research (CNPR) which was will provide funds up to SGD300,000 per established in 1993 in a collaborative project. However, at the point of agreement between GlaxoSmithKline application the scientist must secure an and Singapore’s Institute of Molecular interested investor or industrial partner and Cell Biology. CNPR was who can provide them with business or privatised in May 2002 to form technical advice from concept through to MerLion, to form a discovery and commercialisation. The SEDB aims to development company. After its support up to 20 POC projects over the formation, MerLion embarked on next three years. formal collaboration in drug discovery and development with global player DEVELOPMENT OF THE such as Fujisawa Pharmaceutical Co. COMMERCIAL BASE Ltd, John Hopkins Singapore Pte Ltd Singapore’s effort to strengthen the and the National Cancer Center biomedical science sector has led to (Singapore). MerLion’s privatisation is significant growth of its commercial base seen to represent successful in the past few years. Its strategy has privatisation of Singapore’s research
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Table 3: Bio*One portfolio companies
USA – West Coast Singapore CBR Systems, Inc. Agrogen Pte Ltd Forward Ventures IV LP ES Cell International Pte Ltd Genesoft, Inc. MarinEx Pharmaceutical (Singapore) Pte Ltd geneticXchange, Inc. S*Bio Pte Ltd Genomics Collaborative, Inc. Attogenix Biosystems Pte Ltd ISTA Pharmaceuticals, Inc. ABio Pharma Pte Ltd Lynx Therapeutics, Inc. Merlion Pharmaceuticals (Singapore) Pte Ltd Metrika Laboratories, Inc. Merlin MD Pte Ltd Oculex Pharmaceuticals, Inc. Optimer Pharmaceuticals, Inc. Perlegen Sciences, Inc. Europe Sun Biomedical Ltd ML Laboratories Plc Surromed, Inc. Cyclacel Ltd U-Systems, Inc. International Biotech Trust Plc Zyomyx, Inc. Xenova Group Plc Raven Biotechnologies, Inc Paradigm Therapeutics Ltd Fluidigm corporation Aravis Venture I LP Kadmus Pharmaceuticals Inc Carnegie Fund II Galileo Pharmaceuticals, Inc International Life Science Fund III Genospectra Inc SpineVision Kalypysys Inc U3 Celscia Therapeutics Renovis Inc Israel Powerpaper Ltd USA – East Coast Acorda Therapeutics, Inc Aderis Pharmaceuticals, Inc China Genzyme Corp (Biosurgery Division) Beijing Huayi Biotech Pte Ltd Hybridon, Inc Idenix Pharmaceuticals, Inc MPM Bioventures II LP Therion Biologics Corp United Biomedical, Inc Viacell, Inc MPM Bioventures III LP Athersys, Inc Care Capital Investment II LP
Source: SEDB
facility and Singapore’s capability to engineering company which aims to create its home-grown biomedical market its technology in the form of a commercial base. bioreactor for growing stem cells for research and application was spun-off • Attogenix Biosystems a microfluidics from John Hopkins Singapore. company is a spin-off from Nanyang Promatrix Biosciences was a Technology University (NTU) and beneficiary of BMS INC seed capital Defense Science Organisation (DSO) in year 2002. Laboratory. The technology platform company focuses on the development • KOOPrime develops and markets a of biochips for the biomedical sciences range of Enterprise Application research and pharmacogenomics Integration software products and market. Attogenix Biosystem was a services customised for the biomedical beneficiary of BMS INC seed capital sciences industry is a spin-off from in 2002. National University of Singapore (NUS). KOOPrime was a beneficiary • Promatrix Biosciences, a tissue of BMS Inc. seed capital in 2003.
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1200
1000
800 Foreign companies with 77% Singapore activities 600 SGDm
Singapore companies/ 400 start-ups Figure 2: Investment Profile of Bio*One 200 23% Venture investment Capital – snapshot of outside Singapore cumulative investments of years 1991, 1998 and 0 2000 1991 1998 2000 Source: SEDB
• A-Bio, a contract manufacturing Singapore, with research undertaken in company focused on production of Singapore, Australia and Israel. More monoclonal antibodies and recently, Paradigm Therapeutics which is mammalian cell culture technology, is based in Cambridge, UK, has established a a spin-off from BTC. A consortium of wholly owned subsidiary in Singapore. companies led by BMSIF is the BioÃOne capital invested in the parent investors behind A-Bio. company and as a result created a spin-off in Singapore. Paradigm Therapeutics is a Apart from home-grown start-ups and drug discovery and development spin-offs from local research institutions, company focusing on the identification of other strategies to build the commercial new potential drug development base include attracting foreign companies opportunities through human genome. and institutions to Singapore during this Another notable venture is the formation early stage cluster development where the of the International Medical Center present of a critical mass of players is (IMC) in 2000 between National crucial to ensure sustainability and further University Hospital (Singapore) (NUH) growth. For example, SÃBio is a result of and John Hopkins. co-investment by the Singapore government through BioÃOne funds with Large pharma a foreign party, Chiron Corp, to establish Singapore is currently an operational base a commercial base in Singapore. Under for a number of large pharma companies. the agreement, a core group of SÃBio The Singapore government continues to scientists were sent to Chiron’s US facility attract large pharma to set up operations for training in drug discovery and in the country. This strategy is crucial to genomics technologies. This arrangement build-up the critical mass of expertise and is intended to jump-start SÃBio’s corporate players for the Biomedical scientific and research programmes. Science sector. The presence of large Another example is ESI Cell pharma will help to increase the number The presence of large International, which was formed by a of players in order to achieve critical mass, pharma will help joint investment between SEDB and ES and will also provide opportunities for increase the number of Cell Australia Ltd. The company focuses cross-learning and formation of strategic players in order to achieve critical mass ... on human embryonic stem cell alliance between large pharma and small development and has its headquarters in biotech companies. As observed in most
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...and will provide mature clusters, large pharma and small formation of the first biotechnology opportunities for cross- biotech companies interact to form company, Genentech, in 1976. The learning and formation profitable alliances and partnerships. company was founded by Swanson, a of strategic alliance Historically, large pharma locate their venture capitalist at that time, and Boyer, between large pharma and small biotech operations to Singapore for cost the scientist who invented rDNA companies competitiveness. For example, as early as technique. Genentech went public in 1970s, GlaxoSmithKline located its 1978, raising US$35m. It has always been production facility in Singapore questionable if the Europe and US model (SmithKline Beecham set up an can be transferred to other economies, antibiotics plant and GlaxoWellcome set especially where the prerequisite for the up a chemical plant). For the past 2 years, success of a science base sector is not a US$1.8bn incentive is budgeted to present at the first place. encourage large pharma to invest in The strategy adopted by the Singapore Singapore in addition to attractive tax government represents a different breaks.3 In 2002, three key players – trajectory from the European and US GlaxoSmithKline, Wyeth and Schering- cluster growth. In the case of Singapore, it Plough – built plants in Singapore.3 is clear that the driving force behind the The main principle of More recently, large pharma has started development of the biomedical sector is Singapore strategy is to to set up R&D facilities in the country. the government. The main principle of identify a sector Schering-Plough Corp has established a Singapore strategy is to identify a sector targeted for growth and then to focus its efforts clinical development centre. Eli Lilly and targeted for growth and then to focus its on building the key Co. set up a research institute known as efforts on building the key pillars to pillars to support the the Eli Lilly Systems Biology Pte Ltd. support the sector; identified in this case sector; identified in this Novartis AG established its Institute for to be research, early stage funding and case to be research, Tropical Diseases, which will focus on the specialised infrastructure. Although it may early stage funding and discovery of treatments for common be too early to assess how successful this specialised infrastructure ailments in the region such as tuberculosis approach is, it is already evident that it has and dengue fever. created a significant impact on the biomedical science sector in terms of the A NEW APPROACH growth in the number of start-ups, the The development of biotechnology increasing presence of foreign commercial base in Europe and USA in pharmaceutical companies in Singapore the past 20 years has been driven mainly and the growth in manufacturing output by independent research and industrial of the sector (see Table 4). activities.4 For this development trajectory to result, a few elements have to be in place. First is the existence of a IMPLICATIONS FOR developed and strong science base which GLOBAL BIO- is clearly evident in the UK and the USA. MANUFACTURING Second is the realisation of the BUSINESS MODEL commercial potential of the science and Rapid early stage cluster the willingness to take risks to growth commercialise a new technology.4 In the Currently, the commercial base of UK and the USA the development of the Singapore’s biomedical science sector sector is made possible by the existence of consists of a pool of start-ups, most of two main groups: first, scientists who which benefit from government grants, as became entrepreneurs and were willing to well as equity investment from publicly take the risk of exploiting the new funded or private VCs. Singapore had its technology. Secondly, venture capitalists first fully integrated drug discovery (VCs) who were willing to invest in new company, SÃBio, established in 2000. In technology and took risk in doing that.4 the span of less than four years, there are An example of this development is the now over 50 companies incubated in
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Table 4: Summary of BMS sector performance (nominal growth)
Manufacturing output (SGDm) Value-added (SGDm) Employment
2002 2003 % growth 2002 2003 % growth 2002 2003 % growth
BMS total 9,763 11,312 15.9 5,876 6,922 17.8 7,343 7,596 3.4 Pharmaceuticals 8,055 9,532 18.3 4,892 5,892 20.5 3,203 3,589 12.1 Medical technology 1,708 1,780 4.20 983 1,029 4.6 4,140 4,008 (3.2)
Source: SEDB
Singapore. The establishment of a public parts of Asia offers companies a base to funded VC is an innovative way to jump- access the other parts of Asia that are start the sector, especially when the capital underdeveloped compared with market within Singapore is still in its Singapore. With their main activities infancy. anchored in Singapore, companies could operate a global business network to Business focus (product v complement their core activities in platform/services) Singapore. For example, SciGen one of Currently, most local start-ups in Singapore’s biotechnology companies Singapore are technology platform-based aims to tap into Vietnam, Philippines, companies which focus on the discovery Indonesia, China, India and Pakistan. and development of a technology platform to aid product development. One of Singapore’s This business model aims to generate CHALLENGES challenges is to maintain the supply of value through licensing fees, subscription Personnel personnel to sustain the and service fees of the technology With a population of four million and a growth of the economy platform.5 Companies, particularly local declining birth rate, one of Singapore’s start-ups such as Attogenix Biosystem, challenges is to maintain the supply of Promatrix Biosciences and KOOPrime, personnel to sustain the growth of the seem to adopt the technology platform economy. One potential pitfall is the lack business model. Platform-based business of skilled staff. To address this crucial models are relatively easier to set up,6 supply issue, the government is focusing enable companies to operate in a lower- on the education system, staff training and risk environment, but have lower return use of foreign talent. This supply issue is than a product-based company. However addressed through direct funding in some critics point out that there is little education and training in the area of scope for value generation in this model biomedical sciences and foreign talent and that the technology that these policy to fill the immediate needs. For companies rely on risks being example, AÃSTAR supports individual commoditised. A common strategy is for researchers through a five year SGD500m companies to generate short-term National Science Scholarship initiative. revenues from platform technologies This initiative supports students beyond while simultaneously engaging in the PhD levels and is expected to train 600 lengthy and expensive product research scientists in the area of development. It is, however, unclear if biomedical sciences. Other educational- the technology platform-based companies based efforts include promoting interests in Singapore are pursuing this path. in biomedical sciences targeted both at teachers and students at the high-school Global business network level. For staff training, the BTC trains 60 Singapore’s strategy location coupled with MSc and BEng students every year. In its extensive transportation routes to other addition, five polytechnic institutions in
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Singapore are also training laboratory and then to focus its efforts on building technicians. the key pillars to support the sector; identified in this case to be research, early Regional competition stage funding and specialised Singapore faces strong regional infrastructure. Although it may be too competition from Malaysia, Australia, early to assess how successful this India, Hong Kong and China. These approach is, it is already evident that it has different economies are competing for created a significant impact on the inward investment from established firms biomedical science sector in terms of the abroad and the limited pool of talent to growth in the number of start-ups, the support the growth of the biotechnology increasing presence of foreign sector. Government support and funding pharmaceutical companies and the growth in the form of grants, benefits, incentives of manufacturing output of the sector. and tax breaks is a prominent feature Although the commercial base of throughout Asia. Almost every Asian Singapore’s biomedical science sector Almost every Asian government is planning to develop consists of a pool of start-ups and a government is planning infrastructures and a commercial base in number of large pharmaceutical to develop their respective countries. companies, the sector is still in its infancy infrastructures and a One of the main issues faced by and is growing. Currently, most home- commercial base in Singapore is the lack of experienced grown companies are technology their respective countries investors in the area of biomedical platform-based companies. To sustain the sciences which is key element for early growth of the sector, Singapore will have stage cluster growth. The capital market to continue to compete against other in Singapore is relatively young and regional players for direct investment as foreign VCs from the USA and the UK well as for foreign talents. It remains might be reluctant in investing outside unclear which countries will benefit the their home base especially in young most from their investments in the sector. clusters. In contrast, companies seeking The questions that remain are: funding may find Hong Kong a better place and it has a stronger financial sector • Is the approach adopted by Singapore, and the largest venture capital fund in Asia which is heavily funded by the that companies can capitalise. government, sustainable? Compared with its competitors, Singapore’s domestic market is small. • Can Singapore compete successfully Although companies could leverage its for talent and resources with its extensive transportation systems and neighbours and other global players? proximity to other Asian countries, its local market may be too small to sustain • Do the companies that are now being the scale of production that the country incubated in Singapore operate on hopes to achieve. India, for example, may sound business models for long-term be more attractive as a manufacturing base value generation? for companies that prefer to locate their production near to their markets. With a population of one billion and the It will be interesting to track the availability of skilled workforce, India is evolution of the biomedical science sector definitely a competitor to Singapore in Singapore, the impact of the when it comes to attractive direct government’s strategy to the growth of investment. the sector and to compare that with other government’s approach to this strategic CONCLUSIONS area and the authors intend to keep the The main principle of Singapore strategy development of Singapore’s Biomedical is to identify a sector targeted for growth Science sector under review.
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Acknowledgment www.asiatoday.com.au; accessed 1st February, The authors would like to thank the Singapore 2004). Economic Development Board for its contribution to this paper. The authors would also like to 3. Businessweek Online (2003), ‘Little Island, Big Pharma’, 17th February (URL: express their thanks to Finbarr Livesey, the www.businessweek.com; accessed 10th March, Programme Director of Center for Economics and 2004). Policy, Institute for Manufacturing, Cambridge University for his feedback on early drafts of this 4. Reiss, T. (2001), ‘Success factors for article and his encouragement and support biotechnology: Lessons from Japan, Germany throughout the writing of this article. and Great Britain’, Int. J. Biotechnol., Vol. 3(1/2), pp. 134–156.
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