characteristics of firms engaged in collaborations

Characteristics of firms engaged in collaborations

Charlene LonmoScience, Innovation and Electronic Information Division

Statistics CanadaPresentation at CIRANO

September 19, 2008

September 19, 2008Statistics Canada • Statistique Canada2

Overview of the Presentation

Theory – collaboration by science-intensive firms

Data: Surveys of Biotechnology Use and Development – 1999 to 2005

Profile of innovative biotechnology firms by selected characteristics

Comparison of collaborators and non-collaborators

Conclusion


Theory: collaboration by science-intensive firms

Science-based businesses

“… connote a commercial enterprise or collection of enterprises that attempts to both create science and to capture value from it. That is, the science-based business actively participates in a process of advancing and creating science. Moreover, a significant part of the economic value of the enterprise is ultimately determined by the quality of the science upon which it rests.”

Gary Pisano, Science Business


Theory: collaboration by science-intensive firms

“Cooperative and collaborative arrangements involve the active participation in projects between your company and other companies or organizations in order to develop and/or continue work on new or significantly improved biotechnology processes, products and/or services. Pure contracting-out work is not regarded as collaboration.”

Biotechnology Use and Development Survey


Data: Surveys of Biotechnology Use and Development – 1999 to 2005

Survey process• Survey on Emerging Technologies supplemented with other sources

such as the RDCI, government agencies and business associations to create a frame

Population covered by estimates• Innovative biotechnology firms – those developing biotechnologies, not

merely using them• Biotechnology is defined in the questionnaire and this definition is

generally accepted for biotech surveys in other OECD countries Questions asked

• Technologies, human resources, HR challenges and strategies, firm characteristics (age, ownership, spin-off), products, impacts of regulations, contracting in and out, collaborations, intellectual property, traditional financial data, special financing, tax incentives, exports, imports and business strategies


Profile of innovative biotechnology firms

53%51%60%63%% collaborators

252239149134Non-collaborators

280251226224Collaborators

532490375358All innovative biotechnology firms

2005200320011999

53%51%60%63%% collaborators

252239149134Non-collaborators

280251226224Collaborators

532490375358All innovative biotechnology firms

2005200320011999

Source: Statistics Canada: Biotechnology Use and Development Surveys, 1999 to 2005


Collaboration by selected characteristics: Human health biotech sector

1999 2001 2003 2005

Human health biotech firms 150 197 262 310

Human health collaborators 110 129 143 164

% of biotech firms in the human health sector 42% 53% 53% 58%

% of human health biotech firms that collaborate 73% 65% 55% 53%

% collaborators in human health 49% 57% 57% 59%



Collaboration by selected characteristics: firm size by employment

1999 2001 2003 2005

Small biotech firms (<50 employees) 269 266 352 397

Small collaborators 153 156 177 202

% of biotech firms that are small 75% 71% 72% 75%

% of small biotech firms that collaborate 57% 59% 50% 51%

% biotech collaborators that are small 68% 69% 71% 72%



Collaboration by selected characteristics: age of biotech firm

1999 2001 2003 2005

Young firms (5 yrs or less) .. 156 240 142

Young collaborators .. 104 123 72

% of biotech firms that are young .. 42% 49% 27%

% of young biotech firms that collaborate .. 67% 51% 51%

% biotech collaborators that are young .. 46% 49% 26%



Collaboration by selected characteristics: biotech firms that are spin-offs

1999 2001 2003 2005

Spin-off biotech firms 123 140 176 179

Spin-off biotech collaborators 81 93 110 116

% of biotech firms that are spinoffs 34% 37% 36% 34%

% of biotech spinoffs that collaborate 66% 66% 63% 65%

% biotech collaborators that are spinoffs 36% 41% 44% 41%



Collaboration by selected characteristics: biotech firms with patents

1999 2001 2003 2005

Biotech firms with patents 207 249 315 333

Collaborators with patents 163 165 189 199

% of biotech with patents 58% 66% 64% 63%

% of patenting firms that collaborate 79% 66% 60% 60%

% collaborators that have patents 73% 73% 75% 71%



Collaboration by selected characteristics: biotech firms that obtained funding

1999 2001 2003 2005

Biotech firms with funding 138 134 178 173

Collaborators with funding 95 92 117 105

% of biotech firms with funding 26% 25% 33% 33%

% of funded firms that collaborate 69% 69% 66% 61%

% collaborators that have funding 42% 41% 47% 38%



Collaboration by selected characteristics: stage of development

1999 2001 2003 2005

Biotech firms with no biotech products/processes 167 196 272 209

Collaborators without biotech products 112 112 144 126

% of biotech firms without biotech products 47% 52% 56% 39%

% of biotech firms without biotech products that collaborate 67% 57% 53% 60%

% collaborators that have no biotech products 50% 50% 57% 45%



Collaborating firms:collaboration partners and purposes

1999 2001 2003 2005

Purpose of collaboration

Partners BothScience

only BothScience

only BothScience

only BothScience

only

All collaborators 143 81 81 145 112 139 120 160

Both public and private 91 22 38 32 43 17 56 49

Private only 37 18 37 61 59 48 35 52

Public only 15 41 6 52 10 74 29 59



Comparison of collaborators and non-collaborators by selected key variables

Key variables: Biotech revenues Biotech R&D Biotech employment Fund-raising


Collaborators vs. non-collaborators by Biotech Revenues

1999 2001 2003 2005

Collaborators

Average biotech revenue per firm (millions) 7.9 10.4 7.2 8.8

Biotech intensity (by revenues) 13% 10% 12% 10%

Non-collaborators

Average biotech revenue per firm (millions) 2.3 6.9 8.0 5.4

Biotech intensity (by revenues) 5% 26% 13% 5%


Note: Revenues are in constant 2002 dollars


Collaborators vs. non-collaborators by Biotech R&D

1999 2001 2003 2005

Collaborators

Average biotech R&D per firm (millions) 3.5 5.6 3.7 4.0

Biotech intensity (by R&D) 87% 99% 60% 71%

Non-collaborators

Average biotech R&D per firm (millions) 0.7 2.1 2.2 1.7

Biotech intensity (by R&D) 63% 79% 74% 60%


Note: R&D expenditures are in constant 2002 dollars


Collaborators vs. non-collaborators by Biotech Employment

1999 2001 2003 2005

Collaborators

Average biotech employment per firm 28 39 32 32

Biotech intensity (by employment) 13% 18% 22% 15%

Non-collaborators

Average biotech employment per firm 11 20 16 17

Biotech intensity (by employment) 10% 24% 10% 16%



Collaborators vs. non-collaborators by Biotech fund-raising

1999 2001 2003 2005

Collaborators

Funds raised (millions) 2,070 710 1,226 775

Average funds raised by seekers (millions)

21.8 7.7 10.5 7.4

Non-collaborators

Funds raised (millions) 216 279 414 450

Average funds raised by seekers (millions)

5.0 6.7 6.8 6.6


Note: Funds are in constant 2002 dollars


Conclusions

Trends The proportion of biotech collaborators is dropping Spin-off firms are more likely to be collaborators Firms with patents are more likely to be collaborators Firms that obtained funding are more likely to be

collaborators The proportion of funded firms that collaborate is

dropping, as has the average value of funds raised – the difference between collaborators and non-collaborators is diminishing

Value of other approachesLinked database to enable the study of impacts


Questions

For further information:

Chuck McNiven – Section Chief for Emerging [email protected]

Charlene Lonmo – Survey manager for BUDS and the Survey on Emerging Technologies

[email protected]

Beau Cinnamon – Survey manager for Bioproducts Survey and Functional Foods and Natural Health Products Survey

[email protected]

characteristics of firms engaged in collaborations

Documents

surveys of biotechnology

biotech surveys

characteristics of firms

biotech firms

scienceintensive firmsdata

firm characteristics

age of biotech firm

spinoffs source