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1 Policies for Institutional Intermediaries in the Bioeconomy David Castle.

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1 1 Policies for Institutional Intermediaries in the Bioeconomy David Castle

2 Why Worry?  Because there is evidence that biotech innovation (SMEs) has for many years been treated as a parallel to ICT innovation  Models of bioeconomy R&D are in flux  Renewed interest in regional + industrial policy  Yet bioeconomy policies are technology focused but not focused on the (non-technological) determinants of innovation 2

3 Meaning: means that whatever is done to produce food/fuel/feed/fibre has to be ‘sustainable’ intensification ‘doing more with less’ social change Sustainable Bioeconomy

4 This question: is not primarily about material preconditions correctly identifies innovation as a process innovation ≠ products and services focus on those activities that are determinants of innovation How to Sustain the Bioeconomy?

5 System of innovation “all important economic, social, political, organizational, and other factors that influence the development, diffusion, and use of innovations” (Edquist 1997: 14) Edquist on Innovation

6 “Organizations are formal structures with an explicit purpose and they are consciously created. (Edquist and Johnson 1997).” “They are players or actors. Some important organisations in SIs are companies (which can be suppliers, customers or competitors in relation to other companies), universities, venture capital organisations and public innovation policy agencies. (Edquist 2001)” Organisations

7 “Institutions are sets of common habits, routines, established practices, rules, or laws that regulate the relations and interactions between individuals, groups and organisations (Edquist and Johnson 1997).” “They are the rules of the game. Examples of important institutions in SIs are patent laws and norms influencing the relations between universities and firms. (Edquist 2001)” Institutions

8 Between organisations learning (market or non-market) Between institutions conflict of laws and norms Between institutions and organisations mutually embedded one creates the other differentiation Interactions and Functions

9 “There may also be important interactions between different institutions, e.g. between patent laws and informal rules concerning exchange of information between firms. Institutions of different kinds may support and reinforce each other, but they may also contradict and be in conflict with each other.” (Edquist 2001) Differentiation

10 Differentiation and Open Innovation Are the organisations and institutions tasked with sustained bioeconomy… …supporting and reinforce each other? or …contradicting and conflicting with each other?

11 Four main sources of controversy: 1.Distributional inequities / injustice associated with ownership 2.Principled objections to life science patents 3.Distortion of norms of science 4.Instrumental objections about negative impact on innovation Turbulence: Life Science Patents

12 Gene Patents Deter Innovation Genomics in Medicine (2010) 12(4): S1–S2.

13 Methods Patents Deter Innovation Nature Reviews Genetics (2012) 13:441-8

14 14 Early IP Blocks Future Innovation J Pol Ec 2013

15 Unclear Systemic Effects of IP

16 Overstatement of Role of Patents

17 Brüstle v. Greenpeace

18 Mayo v. Prometheus

19 19 AMP et al v. Myriad Genetics

20 Open Source (Linus Thorvald) Open Science (Cambia) Open Access (PLoS / RCUK) Open Innovation (Chesbrough) OECD

21 Creating a more accessible pre- competitive science base; Enabling multiple independent innovators to work on the same problem; Knowledge management where innovations are strategically transferred in and out of the firm OECD KNM and ‘Open’

22 “…leverage innovative capacity by creating interconnected webs of knowledge that exploit external expertise.” OECD KNM

23 New organisations - combinations of VC, management and IP brokering New institutions - institutionalisation of open innovation credo The Rise of Intermediaries

24 Huck Institutes (Penn State)

25 Scottish Enterprise

26 Edinburgh BioQuarter

27 IP Group

28 U Sydney Charles Perkins Centre

29 University of Sydney Sydnovate

30 BioPontis Alliance

31 Velocity

32 Triple Helix

33 TTOs are in jeopardy Firm-centric open innovation and institution / organisational open innovation Dynamics of inventors’ / innovators’ context is changing but a framework for analysing determinants of institutional dynamics is missing Organisational and institutional dynamics are increasingly differentiated Trajectory of Open Innovation

34 Organisations Proliferating Differentiating Large Scale Concentrating Responding to incentives Differentiation in Intermediaries Institutions Proliferating Differentiating Complex Diffusing Creating incentives

35 Will bioeconomy be sustained by policies that recognize and support the development and refinement of our system of organisations and institutions, with their diverse and differentiated array of functions? Question for Discussion

36 36

37 37

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