1. Panel: Entrepreneurial Ecosystem Models around the World
Tuncay Teksöz
Turkey’s Industrial Transformation Target & IP
Pharma-Perspective
Pfizer Turkey
Health & Value and Public Affairs Director

2. Industrial Transformation
Turkey Needs an Industrial Transformation
to Restore High Economic Growth
Moderated growth since 2012:
Below the level to converge with developed economies
Turkey is the world’s
17th largest economy
Lack of qualification in manufacturing
Problems in creating high added value
Insufficient competitive power in exports
Middle
Income Trap
GDP/cap,1000$
Main assets:
Young, dynamic population,
a large domestic market,
and a strategic location
Industrial Transformation
to improve international competitiveness

3. Focusing Healthcare Industries is NOT a Coincidence
Industrial Transformation towards High-Tech Addressed in National Strategies
Focusing Healthcare Industries is NOT a Coincidence
High Resource Allocation for R&D
$135B worldwide spending for pharmaceutical innovation; TR gets only 0,038%*
A Platform Industry - Biotechnology
Increased competitiveness has a positive impact to other industries’s potential to make Turkey’s export basket richer.
Bloomberg data, Capital IQ data, Strategy& analysis * TEPAV hesaplamaları
TARGETS:
CHALLENGE:
Increasing share of local production from 50% to 60%
by value terms
Discovery of at least one original product and/or repositioning two molecules in different indications
25% increase in clinical trials annually
Can it be realized?
Are they right KPIs heading to international competitiveness?
Do we have a suitable ecosystem?

4. Access to Global Markets
Panoramic View of Innovation Ecosystem for Biotechnology
IP Protection
Patent Strength
Perceived IP Protection
Partnerships for
Access to Global Markets
Enterprise Support
Business Friendly Environment
Biotech VC, 2007($mm)
VC availability
Capital availability
Intensity
Pricing &
Reimbursement
Policies
Market Access
Conditions
Biotech patents/ total patents filled wPCT
Value added of konwledge and tech intensive industries
Business expenditures on biotech R&D
Foundation
Business expenditures on R&D (%GDP)
Gross domestic expenditure on R&D (%GDP)
Infrastructure quality
Entrepreneurship and opportunity
Public – Private – Univ Partnership Platforms
Access to Global R&D Networks
Education & Workforce
Post secondary science graduates/cap
PhD graduates in lifesciences per million popl
R&D personnel per 1000 employement
Talent retention
Brain gain (share of global students outside country)
Political stability and absence of terror
Government effectiveness
Regulatory quality
Rule of law
Scientific American Worldview Scorecard, 2016:
Innovation potential in biotechnology around the world
Policy & Stability

5. Pharma-Industry Showcase
Innovation Potential in Biotechnology vs IP Protection
Where does Turkey Stand?
Countries
Pharma-Industry Showcase
European Countries
Upper Middle
Income Countries
A comprehensive understanding of IP strength involves objective and subjective elements, and the Scorecard considers both. For an objective measurement, we use a study (Park, W.G. Research Policy 37, 761–766 (2008)) that explores five measurements: patentable inventions, membership in international treaties, duration of protection, enforcement mechanisms, and restrictions. For a subjective measurement, we turn to another study (Schwab, K. The Global Competitiveness Report, 2014–2015. World Economic Forum (2014)), compiled from the opinions of business leaders about their perceptions of domestic IP protection.
Enterprise support: This category consists of four elements. We derived the “business-friendly environment” measurement from Doing Business 2015 (World Bank and the International Finance Corporation). This report surveyed local experts on a synthetic business case—an approach that does present limitations, as it is restricted to a single example of a specified size and refers to conducting business in a country’s largest city, with the exception of certain nations such as China. The “biotechnology venture capital” component is drawn from measurements from the OECD. The “venture capital availability” score comes from an index based on an international survey (Schwab, K. The Global Competitiveness Report, 2015–2016. World Economic Forum (2015)). The last metric, “capital availability,” was derived from the Milken Institute Capital Access Index.
Foundations: When it comes to building an international reputation as a nurturing home for innovative biotechnology, the factors measured in Foundations play a key role. Reflected here are important issues, like the quality of a nation’s infrastructure—roads and ports and so on. No firm wants to do business in a country where these elements are subpar. The category also considers the percentage of business and government spending that goes to R&D, which indicates the financial foundation of the industry. We include numbers on R&D spending in addition to fundamental metrics, such as infrastructure quality, because R&D can plant the seeds for future growth. Many interesting opportunities present themselves in the course of research, so it is reasonable to expect that a greater R&D spend will give rise to more opportunities.
Intensity: If IP Protection is the keystone supporting the pieces of a nation’s biotechnology sector, Intensity is the combination of focus, diligence, tools and commitment of the team putting them together. This category consists of measurements adjusted for population size and economy, so that countries large and small can compete equally. The leaders in this race provide the best settings for biotechnology growth, because they emphasize it the most.
Scientific American Worldview Scorecard, 2016: Innovation potential in biotechnology around the world

6. For the International Competitiveness
Strong IP Environment at International Standards is Needed
Current Manufacturing
Composition in Turkey
Units (Million)
Local Manufacturing %74
Import %26
Current
Production
in Turkey
Higher value added phases where
IP protected must be focused for
international competitiveness
Value (Billion)
Local Manufacturing %47
Import %53

7. To Improve Global Competititveness
Turkey Should Integrate with Global Value Chain
A technological leap is essential to increase the share of high-tech and high value added export for the sustainable growth
Pharma and biotechnology are proritized in this technological transformation
Integration with global value chain is needed for global competitiveness
Competitive IP standards is one of the key elements to make the ecosystem attractive for biotech investments.