Swiss Biotech Report 2013 www.swissbiotechreport.ch Pictures: Cover Picture: Picture courtesy of Heinz Müller ©, mountain view in Obergoms, Canton Valais Page 5: © Charles Ellena/SNF Page 11: © Charly Rappo/SNF Page 19: © Markus Bühler-Rasom Table of content Editorial 4 Know-how as product: preparing the ground 5 Biotechnology, an important source of know-how 6 Fluid boundaries in the generation of know-how 8 CTI: reorganization and extension of support for knowledge and technology transfer 9 Know-how as product: IP protection and valuation 11 Patents: their value and valuation as assets 12 How to secure funding for basic research in Switzerland? 14 Know-how as product: realising value 19 Know-how and innovation: lifeblood of high-technology markets 20 Year in review – Swiss biotech 21 Swiss biotech in review 28 Facts & figures 29 3 Editorial In a rapidly changing global market, the ability of a country to compete is dependent on an efficient transfer of know-how and creativity into innovative products and services. Given Switzer- land’s lack of natural resources, this transfer is crucial for pros- perity. When it comes to scientific publications and patents, Switzer- land is a world leader on a per capita basis. However, sustaina- ble prosperity depends on constantly renewing and fuelling our science and technology institutions and on rapidly turning know-how and innovation into business models and products. Swiss Biotech has continued to demonstrate sustained inven- tiveness and success. As a result, chemicals, pharmaceuticals and biotechnology were Switzerland’s largest (38%) export industry in 2011. The OECD, the EU and most national governments recognize biotechnology as one of the critical factors for sustainable eco- nomic growth. Biotechnology not only produces tangible results such as new therapeutics but is also a versatile technol- ogy relevant to many industries other than healthcare. For ex- ample, biotechnology may be used in the future to meet the challenges of environmentally sustainable production. Bio- technology is, and will be even more so in the future, influenced not only by the biotechnology industry but also by public research support, regulations, intellectual property rights, and social attitudes. In this year’s Swiss Biotech Report we focus on how to turn know-how into products, services and innovation. The relevant Swiss stakeholders in the biotech value chain will lead you along the challenging path from the generation of know-how, via the protection of inventions, to the creation of a product and successful introduction into the market. The steering committee Domenico Alexakis Anna Bozzi Oreste Ghisalba Heinz Müller Ori Schipper Andrea von Bartenwerffer Jürg Zürcher 4 Know-how as product: preparing the ground 5 Biotechnology, an important source of know-how Zürich, the university hospitals and the universities of applied sciences in Muttenz, Sion, Fribourg and Wädenswil , as well as the biomaterials laboratory at EMPA. All of these centres make a fun- Domenico Alexakis, damental contribution to the development of a strong pool of Swiss Biotech Association qualified and competitive professionals who can help maintain the Swiss biotech industry’s leadership position in the world. For over 10 years, the academic R&D network biotechnet has made Daniel Gygax, a significant contribution to the education of those studying for biotechnet Switzerland & degrees in biotechnology, chemistry and life sciences. It has also University of Applied Sciences been involved in the delivery of results on some important pro- of Northwestern Switzerland jects for the biotech industry. Important, applied project work is particularly beneficial to niche-oriented SME companies. As a country, Switzerland has one of the highest ratios of R&D Today the funding for research in Switzerland comes from three expenditure to gross domestic product. This accounted for 3% principal sources: private funding from individual companies; of GDP or CHF 16.3 billion in 2008, with some 73% or CHF 11.98 the Swiss National Science Foundation (SNSF) which finances basic billion of the overall R&D activities being performed within research with public funds; and the Commission for Technology private industry and 24% within academia. Biotechnological and Innovation (CTI/KTI) which concentrates on applied research R&D accounts for CHF 1.5 billion or 13% of the overall R&D projects between academia and business. activities in industry (bfs, 2010). Biotechnology provides Switzerland, Europe and the world with “Switzerland considers education, research the potential to accelerate the transition to a more sustainable and innovation to be a top priority.” growth model; one that is built on remaining competitive and creating high-value and high-tech know-how. A strong and State Secretariat for Education, Research and Innovation (SERI), www.sbfi.admin.ch competitive life-sciences sector can generate and maintain high quality jobs in both rural and urban settings. The potential of biotechnology and its strategic importance is The Swiss National Science Foundation (SNSF) is the country’s fore- set out in various international policies, including ‘The Bio- most institution for the promotion of scientific research. One of economy to 2030’ by the OECD, the EU Commission’s official its core tasks is the evaluation of research proposals. Every year, ‘Life Science and Biotechnology Strategy and Action Plan’ and it awards over CHF 700 million to the best applications. By distrib- research and education programmes such as ‘Horizon 2020’. uting public research money, based on a competitive system, The strategic importance of biotechnology to Switzerland is re- the foundation helps to maintain the high standards of Swiss flected in the level of public investment in life sciences research. research. Biotechnology is a versatile tool which offers a broad range of To ensure its independence, the SNSF was established as a pri- techniques that are applicable to many industries. It is helping to vate foundation in 1952. Mandated by the federal authorities, it improve economic sustainability by bringing environmental ad- supports basic science in all academic disciplines, from history vantages and competitiveness. In Switzerland it has the poten- through to medicine and engineering sciences. In close collab- tial to contribute to the transformation of economic models. oration with higher education institutions and other partners, Time and time again it demonstrates that it can provide the ba- the SNSF helps to create the best possible conditions for the sis for tackling today’s health challenges and those of tomorrow. development and international integration of Swiss research. The SNSF is paying particular attention to the support of young Institutions and processes to create and scientists. >> page 8 generate know-how The Commission for Technology and Innovation (CTI) is the federal Swiss universities are well-established centres of excellence in the administration's decision-making body for all matters pertain- fields of basic and applied research for biology, biotechnology and ing to the promotion of innovation. The CTI reports directly process engineering. They include the Swiss Federal Institutes of to the Federal Department of Economic Affairs, Education Technology in Zürich (ETHZ) and Lausanne (EPFL); the universi- and Research (EAER). Its remit is to promote R&D projects and ties of Bern, Basel, Fribourg, Geneva, Neuchâtel, Lausanne and entre preneurship. It provides assistance with the creation and biotechnet Switzerland, the network of the Swiss Universities of Applied Sciences (UAS) and Empa’s biomaterials group, is the one- stop shop for innovation in technology where companies – especially small and medium-sized ones – can easily find the specialist contact person for a specific development. For further information visit www.biotechnet.ch 6 “Education and research play a decisive The investment community is active worldwide and reflects the truly global spirit of biotechnology. Switzerland has both a long role in the creation, dissemination and use tradition of financing life sciences stocks and an existing exper- of knowledge. They form an important tise in valuing them. The country’s internationally oriented and potent capital market with its securities exchange – SIX Swiss foundation for innovation at all levels, Exchange – holds a strong appeal for Swiss and foreign life sci- which in turn drives the economic, social ences companies and provides fertile ground for growth and and cultural development of a country.” prosperity. >> page 14 State Secretariat for Education, Exporting know-how: the specialties strategy Research and Innovation (SERI), www.sbfi.admin.ch The Swiss chemical, pharmaceutical and biotech industry ex- hibits rapid and significant development in specialties. Almost development of start-up companies and seeks to optimise 90% of its overall product portfolio is made up of innovative knowledge and technology transfer through the use of net- high-value specialties; a remarkable share when compared to works, platforms and other initiatives. the international average. Swiss companies have established a Through its Knowledge and Technology Transfer (KTT) promo- worldwide presence and are often market leaders. The sector tion programmes, CTI offers Swiss companies swift and easy shows a marked international orientation, with just 5% or so of access to knowledge in universities and public research organi- sales in the Swiss market. sations