1. Robert Wells Head, Biotechnology Unit Oslo, Norway 11 October 2011 1 Life Sciences for Health and Innovation: An OECD Perspective

2. 1961: 19 western countries and 75% of world’s GDP

3. OECD + RUSSIA + BIICS > 80% of world’s GDP 64% of world’s population

4. World population in 2030 Source:Salim Sawaya, based on medium variant of the UN Population Division’s “World Population Prospects: The 2006 Revision Population Database”

5. Biotechnology at the OECD Committee for Scientific and Technological Policy (CSTP) Working Party on Biotechnology (WPB) Biotechnology Unit –Biomedicine and health innovation –Biotechnology for sustainable (Green) growth –Converging Technologies (syn bio) –Knowledge Management (incl. intellelctual property) –Marine Biotechnology 5

6. CHANGING NATURE OF SCIENCE AND INNOVATION 6

7. Innovation is key to growth... Contributions to labour productivity growth, 1995-2006, in % * Investment in intangibles and multi-factor productivity growth account for between two-thirds and three-quarters of labour productivity growth.

8. Science is increasingly international…. 8 1998 2008 Source: OECD (2010) Measuring Innovation: A New Perspective

9. New global players have emerged … Contributions to growth in global R&D, 1996-2001 and 2001-2006 (in billion constant US PPP and %) Note: (1) Australia, Canada, Iceland, Korea, Mexico, New Zealand, Norway and Turkey (2) Argentina, Brazil, India, Israel, Russian Federation, Singapore, South Africa, Chinese Taipei Source: OECD.

10. The financing of R&D has changed over time Business financing of R&D has taken on greater importance as innovation has become more important for firm performance – high-tech industries have grown in particular. Government’s share has declined and other national sources (notably non-profit institutions) have become more important sources of R&D financing. Financing of R&D, 1981-2005 10

11. Some implications for R&D financing Firms have started to finance R&D in universities to access basic research. At the same time, governments are funding less business R&D through direct support. 11

12. Direct and indirect government support to business R&D (BERD), 2008 As percentage of GDP Source: OECD, NESTI 2009 R&D tax incentives questionnaire, based on national sources, some of which may be preliminary. Note: Countries with a non-shaded bar provide R&D tax incentives but the cost of these incentives is not included yet (waiting to receive estimates).

13. But public investment remains key… Basic research performed in the public sector, 2007 Percentage

14. Innovation involves national and international collaboration

15. Co-ownership of Innovation is growing Between Businesses and PROs… numbers of co-owned patents

16. Science and Innovation Profile of Norway

17. STI Policy Mix: No One Size Fits All

18. 18 (indexed on 1980=1.0, Annex 1 ratification countries) Policy can induce greater innovation Patenting in climate mitigation technologies relative to all sectors

19. Innovations in biotechnology Reliance of patents on science citations (biochemistry papers cited by pharmaceutical patents)

20. Battelle Report on the Value Derived from the Human Genome Project – May 2010 1.The economic and functional impacts generated by the sequencing of the human genome are already large and widespread. Between 1988 and 2010 the human genome sequencing projects, associated research and industry activity—directly and indirectly—generated an economic (output) impact of $796 billion, personal income exceeding $244 billion, and 3.8 million job ‐ years of employment. 2. The federal government invested $3.8 billion in the HGP through its completion in 2003 ($5.6 billion in 2010 $). This investment was foundational in generating the economic output of $796 billion above, and thus shows a return on investment (ROI) to the U.S. economy of 141 to 1—every $1 of federal HGP investment has contributed to the generation of $141 in the economy. 3. In 2010 alone, the genomics ‐ enabled industry generated over $3.7 billion in federal taxes and $2.3 billion in U.S. state and local taxes. Thus in one year, revenues returned to government nearly equaled the entire 13 ‐ year investment in the HGP. 4. Overall, however, the impacts of the human genome sequencing are just beginning—large scale benefits in human medicine, agriculture, energy, and environment are still in their early stages. The best is truly yet to come. 5. The HGP is arguably the single most influential investment to have been made in modern science and a foundation for progress in the biological sciences moving forward. 20

21. Key Recent OECD Biotech Instruments and Policy Reports Guidelines on the Licensing of Genetic Inventions (2006) Guidelines on Quality Assurance in Molecular Genetic Testing (2007) Guidelines for the Operation of Human Biobanks and Genetic Resource Databases (2009) The BioEconomy 2030 (2009) Policy Reports on Knowledge Networks and Markets in Life Sciences and Collaborative Mechanisms in Intellectual Property in Life Sciences 21

22. Ongoing OECD Work in Biomedicine and Health Innovation Innovative Governance in Biomedicine –“Berlin Workshop” (2010) –Policy Report on Biomarkers (2011) –Planned work in Alzheimer’s/dementia Report on Personalised Medicine and Global Health 22

23. Contacts: www.oecd.org/sti/innovationwww.oecd.org/sti/innovation www.oecd.org/biotechnology Robert.wells@oecd.org 23