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Scottish Life Sciences Strategy 2011

            Creating Wealth, Promoting Health




                                   2020 Vision
Scottish Life Sciences Strategy 2011 | Creating Wealth, Promoting Health




Contents





02: 	   Foreword The global and economic imperatives driving this refresh of the
        2020 Strategy for Scotland’s Life Sciences are outlined by the Co-Chairs of the
        Life Sciences Advisory Board, Dr John Brown and Nicola Sturgeon MSP, Deputy
        First Minister and Cabinet Secretary for Health and Wellbeing.

03: 	   Our mission To double the economic contribution of Life Sciences to Scotland
        by 2020.

04: 	   Our vision To make Scotland the location of choice for business, investors
        and talented people, while securing Life Science’s contribution to Scotland’s
        economic growth.

05: 	   Our challenge The industry stands at the intersection of three mega-trends
        – in demographics, the environment and technology.

06:	    Our strengths Scotland’s Life Sciences enjoy critical strengths in key business
        areas, business diversity, research and innovation, start-up creation and
        infrastructure.

07: 	   Our strategy for success Our prime objectives are to anchor key businesses in
        Scotland, build more resilient companies, and attract inward investment, talent
        and aspiring leaders.

08:	    Our action agenda Our six-point plan is to accelerate growth with the
        emphasis on business and institutional collaboration.

10: 	   The focus for growth We will target support on the most promising
        areas of business endeavour, institutional research and significant emerging
        opportunities.

12: 	   A call to action Next steps for all our stakeholders.




        Acknowledgements: LiSAB would like to thank local companies, researchers
        and the NHS for permission to reproduce their photographs.


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Scottish Life Sciences Strategy 2011 | Creating Wealth, Promoting Health




Foreword





In 2005 the Life Sciences sector outlined             The global need for first-class healthcare        Life Sciences is an industry in which Scotland
its 2020 Vision for Achieving Critical                solutions will continue to drive innovation       already has an international competitive
Mass. This Vision still remains in our                within Scottish Life Sciences. This, in           advantage with huge potential. We can
sights. However, we face a very different             combination with emerging markets in              do even more to harness this potential in
world today. The deepest global                       developing economies, offers significant          terms of higher growth; high value jobs;
recession in a generation resulted in                 opportunities for the sector over the             increased exports; to build on the strengths
a period of declining output for the                  coming years. Our ambition is to double the       that Scotland has in innovation; in medical
Scottish economy, but growth returned                 economic contribution of Life Sciences to the     R&D; in technology and manufacturing
in 2010, and the latest forecasts show                Scottish economy by 2020.                         capability. And we must do so in even closer
that this is likely to accelerate in                                                                    partnership, because our ability to work
2011. It is within this context that the              This is aspirational, however it is also          collaboratively across Scotland is one of our
Life Sciences Advisory Board (LiSAB),                 achievable. Such significant growth in the        biggest advantages.
working closely with the Life Sciences                sector will allow Scotland to build on our
sector across Scotland, has reviewed the              position as a location of choice for Life         That is why this review of our Life Sciences
Life Sciences Strategy.                               Sciences people, businesses, and capital,         Strategy has been undertaken - to create
                                                      allowing us to compete in the global              an environment in Scotland that will help
                                                      economy.                                          the Life Sciences sector to create significant
                                                                                                        growth. We believe the Life Sciences sector
                                                      To achieve this growth, our Life Sciences         can do this, and help grow the Scotland of
                                                      Strategy focuses on high productivity             our future.
                                                      sub-sectors including clinical, translational
                                                      and regenerative medicine, and highlights
                                                      significant areas of Scottish business strength
                                                      in Medtech, Diagnostics and Pharma services.
                                                      The Strategy also outlines the need to
                                                      anchor, build and attract key businesses,
                                                      people and capital, building on Scotland’s
Nicola Sturgeon, MSP        Dr John Brown, FRSE       reputation as a location of choice for Life
Deputy First Minister and   Co-Chair, Life Sciences   Sciences companies, and on the powerfully
Cabinet Secretary for       Advisory Board
Health and Wellbeing                                  collaborative nature of the Scottish Life
Co-Chair, Life Sciences                               Sciences community.
Advisory Board




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Scottish Life Sciences Strategy 2011 | Creating Wealth, Promoting Health




Our mission
OUR 2020 MISSION is to double the economic contribution
made by Scotland’s Life Sciences Industry.


We have set an aspirational target for                                 Times are tough We’re doing this at a                       We’re confident that it is realistic to aim to
2020 of doubling turnover to £6.2bn                                    time of not only unprecedented challenge                    double current turnover and GVA in the next
and Gross Value-Added (GVA) to £3bn.                                   but also attractive opportunity. At home,                   ten years. That certainly accords with the
                                                                       we’re operating in an era of pronounced                     aspirations of our businesses themselves.
The Life Sciences industry in Scotland                                 fiscal restraint. Abroad, our businesses are
is recognised by both UK and Scottish                                  seeking to make headway in an increasingly                  Analysis of some 400-plus companies
Governments as one with high growth                                    volatile and competitive environment.                       suggests the industry should have both the
potential and the capacity to contribute                               However, emerging markets of the East and                   strength and vigour to sustain the good
significantly to the nation’s productivity.                            changing business models are all driving new                growth of the past decade. The excellent
                                                                       opportunities for our local companies.                      performance of sub-sectors such as
Scotland hosts the UK’s second largest Life                                                                                        medical technologies and contract research
Sciences cluster and one of the most sizeable                          The challenge ahead The economic crisis                     organisations gives us a strong foundation
in Europe.* The sector contributes some                                has dented confidence across many business                  for growth.
£1.5bn of GVA a year and turnover worth                                sectors and has so far had a mixed impact
£3.1bn to the Scottish economy.**                                      on Life Sciences in Scotland. At our least                  And there’s significant further potential in
                                                                       ambitious, we could seek to secure recovery                 breakthrough areas such as regenerative
Our central challenge is to devise a Strategy                                                                                      medicine, stratified medicine and applications
                                                                       and then work on the basis of ‘business as
that builds on this growth to capitalise on                                                                                        of Life Sciences beyond human health in
                                                                       usual’. The alternative is to use the recovery
the sector’s promise. The Strategy must also                                                                                       markets such as energy and the environment.
                                                                       to kick start a bold new era for Life Sciences
be sufficiently agile to capture emerging
                                                                       businesses in Scotland through a decisive,
opportunities in this fast moving industry.
                                                                       targeted plan of action as set out in this
                                                                       Strategy.




* Life Sciences Key Sector Report – Scottish Government, Nov 2009
** Scottish Government and Scottish Enterprise Analysis (using Source Book definition of Life Sciences)




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Scottish Life Sciences Strategy 2011 | Creating Wealth, Promoting Health




Our vision
OUR 2020 VISION is for our Life Sciences industry to be a
significant contributor to Scotland’s sustainable economic
growth and to establish Scotland as the location of choice
for Life Sciences companies.


The over-arching aim of this refreshed                •	 Key sites: We’ll attract innovative         •	 The business and employment
Strategy is to consolidate and expand                    companies to locate in Scotland, linking       opportunities in Life Sciences have
the role of the Life Sciences industry                   them to our world-class research base.         established Scotland as a prime market
as a dynamic contributor to Scotland’s                   We will, for example, continue to find         for both international and domestic
economic growth and social wellbeing.                    tenants for our 100-acre Edinburgh             investors and mobile talent.
We have made excellent progress since                    BioQuarter (see aerial photo below).
the launch of the 15-year Strategy back                                                              •	 The cohesion of the Life Sciences industry
in 2005; we now plan ambitious short                  •	 Step change: We’ll continue to support         has boosted its development of new
and medium-term goals to fully realise                   the evolution and growth of sustainable        products and services, measurably
that 2020 Vision.                                        innovative companies capable of                accelerating their commercial
                                                         transforming their operational scale.          exploitation.
QUICK WINS
Our refreshed Strategy underlines the                 LONG TERM                                      Health promotion
importance of taking immediate steps to               Beyond this, there are two longer-term         Our vision is of a Scotland where:
achieve our primary goal of establishing              yardsticks against which we’ll monitor the
                                                      progress of this Strategy.                     •	 Our National Health Service (NHS) moves
Scotland as an international location
                                                                                                        centre stage as a key customer for
of choice among Life Sciences players,
                                                      Wealth creation                                   Scottish Life Sciences businesses and a
collaborators and investors.
                                                      Our vision is of a Scotland where:                pivotal stimulator of innovative products
To achieve this within the next three years, a                                                          and services.
                                                      •	 More of our indigenous Life Sciences
number of stretching targets have been set:
                                                         companies have grown into major             •	 There is a more positive appreciation
•	 Key deals: We’ll secure international                 international businesses with increased        of the opportunities to participate in
   partnerships and inward investment –                  turnover and significant added-value.          trials of the most advanced healthcare
   including in stem cells and regenerative                                                             products, and the associated economic,
                                                      •	 Our Life Sciences sector has become an         employment and investment benefits of
   medicine; and clinical and translational
                                                         important source of additional high-value      Scotland’s participation.
   medicine – to realise the value of prior
                                                         jobs and managerial ambition.
   investments.
                                                                                                     •	 Our people increasingly benefit from the
                                                                                                        early adoption of innovations in diagnosis
                                                                                                        and treatment, contributing to a better
                                                                                                        quality of life and longer life expectancy.

                                                                                                     •	 The people of Scotland and our policy
                                                                                                        makers understand the role of Life
                                                                                                        Sciences in creating a healthy and low
                                                                                                        carbon environment through advanced
                                                                                                        applications in food and fuel.




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Scottish Life Sciences Strategy 2011 | Creating Wealth, Promoting Health




Our challenge
Our Life Sciences sector stands at the intersection of three
mega-trends with massive global potential.



There’s no denying the testing global              GLOBAL TRENdS                                        LOCAL OppORTUNITIES
economic and financial conditions that             Yet none of this can fully conceal the truly         Out of all this grows a wide range of
provide the context for this Strategy.             huge global potential of the Life Sciences           expanded and new business opportunities.
These are tough times in most business             sector. It stands at the intersection of three       Exploiting them will require equally innovative
areas and, for Life Sciences in particular,        mega-trends described below.                         business models. We have identified a
the challenge is accentuated by a                                                                       number of cross-sectoral opportunities –
combination of factors peculiar to the             demographic The ageing populations of                both within and outside human healthcare
sector itself.                                     the developed world and the increasing               disciplines. We will closely monitor the shape
                                                   affluence of the more populous emerging              of these opportunities as they emerge and
The healthcare industry is one whose route         economies are together generating entirely           develop a more detailed understanding of
to market for new products is characterised        new markets. We’re seeing this most clearly          how Scotland might derive economic benefit
by high R&D costs. All sub-sectors are             in:                                                  from them.
experiencing pronounced downward
pressures on product prices, increased             •	 the improving treatment and                       The areas identified as offering significant
regulatory oversight, and with reduced public         prevention of chronic diseases                    opportunity worthy of further exploration
healthcare budgets, an increasing demand                                                                include:
                                                   •	 an increasing desire for, and ability to,
for evidence of the cost-benefit of new
                                                      enable independent assisted living                •	 Assisted Living – aids to mobility,
products.
                                                                                                           rehabilitation, patient monitoring and
                                                   •	 a rising expectation of continued mental
The shape of the pharmaceutical industry                                                                   management to enhance independent
                                                      and physical wellbeing with ageing
is radically shifting as it is forced to address                                                           lifestyles.
the effectiveness of product pipelines;            •	 a growing pressure for more cost-
the impact of diminishing returns from                                                                  •	 Stratified Medicine – use of molecular
                                                      effective and accessible healthcare
‘blockbuster’ drugs as patents expire; and                                                                 diagnostics to identify optimal treatments
both competition (and opportunity) from the        •	 an accelerating impetus from                         for patients.
East. Medical technology companies also face          treatment to prevention of disease
                                                                                                        •	 Wellbeing – plant, animal and
increasingly onerous regulatory requirements
                                                   Environmental Today’s sharpened focus on                nutritional sciences aimed at promoting
prior to product launch.
                                                   halting climate change and reducing pressure            health benefits in food and drink.
For Life Sciences’ companies there is fierce       on the planet’s finite natural resources
                                                                                                        •	 Sustainability – technologies that
competition for limited supplies of private        confronts us with new challenges – how
                                                                                                           advance the ‘green agenda’ in the use of
finance and the public stock markets are a         we live, how our businesses operate, how
                                                                                                           the world’s scarce resources.
hostile environment for many of our new            government policies will be implemented.
companies.                                         These challenges are opening up new
                                                   opportunities to apply Life Sciences outside
                                                   traditional healthcare markets.

                                                   Technological Huge advances in Life
                                                   Sciences are combining with massively
                                                   expanded capabilities in other disciplines
                                                   such as Information Technology. This
                                                   promises novel solutions to address these
                                                   global challenges in ways inconceivable a
                                                   decade ago – such as tailoring medicines to
                                                   an individual’s own needs.


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Scottish Life Sciences Strategy 2011 | Creating Wealth, Promoting Health




Our strengths
We’re building on solid foundations – an industry whose
diversity and depth provide springboards for growth.

We’re building on solid foundations.                                    This diversity widens the scope for multiple      Strength in SIZE and INFRASTRUCTURE
Today, Scotland has a diverse Life                                      collaborative opportunities between our           Scotland benefits from its compact
Sciences base with more than 640                                        commercial players and our world-ranking          geography and the unified approach of its
organisations employing over 32,000                                     academic research base. It ensures we’re          business, research, educational and policy
people.* Since 1998, we have returned                                   not made vulnerable by over-reliance on           makers. We enjoy short, uncomplicated lines
a 6% compound annual growth rate,                                       any single sector and can grasp emerging          of communication. That makes for strong
increasing turnover from £1.8bn to                                      opportunities in lucrative, global markets.       partnerships and effective policy-making.
£3.1bn.**
                                                                        Strength in RESEARCH and INNOVATION               Our centralised healthcare system offers
We’re one of the UK’s leading regions for new                           We have a long-established international          unique patient identification and tracking
Life Sciences business creation and we’re a                             reputation for excellence in basic, applied and   processes. We have accelerated researchers’
successful investment magnet: even in the                               clinical research in Scotland.                    access to clinical trials within our Health
toughest conditions, venture funding raised                                                                               Boards. We have established Scotland as one
by our Life Sciences enterprises held up well                           The Research Assessment Exercise (RAE),           of the world’s top ten centres for biomedical
in 2010, more than three times the 2005                                 which evaluates the quality of UK research        research and exploitation.
total.***                                                               institutions, provides independent
                                                                        confirmation that Scottish institutions           These strengths mean we can focus on
This track record is based on several                                   have world-leading research strengths in          areas where Scotland has the potential to
measurable strengths.                                                   many areas of Life Sciences (for example          develop sustainable global competitive
                                                                        neurosciences, cancer, immunology and             advantage. We’re nationally collaborative to
Strength in OUR COMpANY BASE                                            cardiovascular disease) and also non-human        be internationally competitive.
Two sectors of the human healthcare industry                            health-related areas (such as agriculture and
comprise our strongest springboard for                                  veterinary medicine).
growth in Scotland:
                                                                        Significant prior investment has further
•	 Medical technology, covering                                         deepened our research excellence in stem
   diagnostics and medical devices,                                     cells and regenerative medicine. We
   comprises more than 150 companies,                                   also boast a broad base of translational
   ranging from global multinationals to                                and clinical medicine skills and resources.
   university start-ups.                                                Both areas are now ripe for translation into
                                                                        new business opportunities and as targets for
•	 pharma services, encompassing more
                                                                        inward investment.
   than 60 companies offering contract
   research in manufacture, pre-clinical,                               Strength in BUSINESS CREATION
   clinical and biosafety testing, and                                  Scotland had the UK’s largest number of Life
   many more businesses providing allied                                Sciences start-ups per head of population
   professional services (such as intellectual                          (2005-09) according to an independent
   property, legal and regulatory advice).                              report.† “Scotland takes top slot,” it says –
                                                                        partly influenced by the quality of university
Strength in BUSINESS dIVERSITY
                                                                        research and partly by Scottish Enterprise’s
In addition there are several other small, but
                                                                        “significant support to promote the sector.”
growing, clusters of companies serving other
markets including animal health, consumer
care, agriculture, food and drink innovations,
and environmental technologies.

* 2010 figures from Scottish Enterprises’s Life Sciences Source Book
** 2008 figures from the Office of National Statistics and Scottish Enterprise
*** Data derived from Young Company Finance
†
  UK Life Sciences Start Up Report 2010, Mobius Life Sciences



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Scottish Life Sciences Strategy 2011 | Creating Wealth, Promoting Health




Our strategy for success
OUR 2020 STRATEGY synthesises three routes to an attractive,
dynamic Life Sciences cluster in Scotland.

Our Strategy is to concentrate efforts on those areas where we consider the greatest impact can be made during the next
decade while also delivering near-term returns for the Scottish economy. Our refreshed Strategy therefore synthesises three
core objectives of fundamental importance to a growing and sustainable Life Sciences cluster in Scotland.




  Key objective: ANCHOR                         Key objective: BUILd                                  Key objective: ATTRACT
  We must create an attractive,                 We must create a more robust                          We must strengthen our
  dynamic environment to                        business base out of the broadly-                     ability to attract key skills and
  retain our prized population                  based population of largely                           management talent, as well as
  of businesses. In today’s highly              small players. We need to assist                      investment from both companies
  mobile business environment,                  companies to increase their                           and financial institutions. That
  Scotland has to be a competitive              chances of achieving sustainable                      can be done only by fostering a
  place for a company to prosper on             growth.                                               dynamic, innovative environment,
  the global stage.                                                                                   with effective marketing of
                                                                                                      Scotland’s unique offering.

  We must embed the significant                 Previous interventions have put                       We need to help our entrepreneurs
  economic contribution made by                 Scotland ‘on the map’ as a generator                  craft opportunities that ‘stand out
  our key players. They make a vital            of Life Sciences start-ups. But, typically,           from the crowd’ among business
  contribution to our goals for turnover        only a few of our smaller companies                   propositions to venture funders. We
  and high-value, ‘sticky’ jobs. They           succeed in sustaining consistent high                 need to target new sources of funding
  supply advanced skills, ambitious and         growth. We therefore need to think                    such as corporate venture capital and
  talented management, and ready                creatively about how to support faster                we must redouble our efforts to win
  access to markets.                            growth of our Life Sciences businesses.               mobile business investment. Inward
                                                                                                      investors have been, and remain,
  We must be explicit about Scotland’s          That means improved harnessing                        critical growth generators.
  essential contribution to the business        of our academic and commercial
  success of companies located here:            capabilities to accelerate new product                Equally important is strengthening
  access to world-leading academic              and service development. It means                     our human capital: attracting
  and clinical research; the strong,            strengthening business offerings by                   management and leadership talent is
  comprehensive supply chain from               building comprehensive supply chains                  vital if we are to steer Scotland’s Life
  R&D to manufacture and clinical               and encouraging business-to-business                  Sciences towards greater international
  trials; a supply of suitably skilled staff.   collaboration.                                        success. Also essential is a pool of
  Scotland’s compelling package will                                                                  suitably trained staff of all levels to
  encourage compaines to locate here,                                                                 meet the growth needs of a diverse
  stay and grow.                                                                                      range of Life Sciences operations.




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Scottish Life Sciences Strategy 2011 | Creating Wealth, Promoting Health




Our action agenda
OUR ACTION AGENdA will address those business-critical areas
with the clearest need for concerted action.

In Scotland, the Life Sciences industry               those business-critical areas with the clearest    A STRONG SHAREd MARKETING
has a track record of good growth                     need for targeted and concerted action.            pROpOSITION
and one whose global opportunities                    These form the key components of our               We need to stand out from the crowd.
promise to sustain that impetus. We                   Action Agenda.                                     That’s the imperative behind clear
have a strong, broadly-spread pipeline                                                                   marketing of Scotland’s promising
of companies at various stages making                 SUCCESS THROUGH COLLABORATION                      message at home and abroad.
us less vulnerable to systemic failure.               Our objective is to encourage
We have an enviable international                     intensified partnerships which will                In the international marketplace, a clear
reputation in research and a high                     swiftly deliver the fullest commercial             voice is essential if we are to win in the face
enterprise birth-rate. So we are well                 opportunities from our research and                of intensifying competition. This means
positioned to meet the challenges with                business base.                                     promoting a well articulated business
confidence and vigour.                                                                                   proposition to promote Scotland’s global
                                                      The key is collaboration – both business-          standing as a location of choice.
Faced with today’s testing economic and               to-business and university-to-business – to
financial challenges, however, some tough             accelerate the process of getting products         On the domestic front, there’s also a powerful
decisions lie ahead. Ever more limited                and services to market. That means                 need to articulate the considerable social
resources must clearly be concentrated for            increasing the commercial partnerships and         benefits of a dynamic Life Sciences industry.
the highest impact. We need to be able                ‘marriage-broking’ mergers and acquisitions
to compete on the global stage and grasp              to strengthen our business environment.            Scotland’s position at the leading edge of
emerging opportunities where economic                 It means increasing the assessment,                innovative healthcare development gives our
benefit for Scotland can be gained.                   sponsorship and uptake of innovative product       people access to more efficient and ground-
                                                      development by the National Health Service,        breaking techniques of healthcare and
Working closely with the Life Sciences                raising the tempo of contract work, and            patient management.
community, we have therefore identified               deepening our market penetration.




                SUCCESS THROUGH                             dETERMINEd TO REALISE                       A TALENT pOOL OF
                COLLABORATION                               OUR FULL VALUE                              INTERNATIONAL CALIBRE
                - encourage intensified business            - capitalise on our private and             - encourage our best talent
                  and research partnerships                   public investments                          to make careers here
                - swift realisation of our fullest           - hasten routes to market for              - attract and develop the most
                  commercial potential                         new products and services                  entrepreneurial business
                                                                                                          leaders



                A STRONG SHAREd                             ACCESS TO FUNdS FOR                         A VIBRANT INNOVATIVE
                MARKETING pROpOSITION                       BUSINESS GROWTH                             CULTURE
                - robust business propositions to           - improve access to sources of              - a culture of shared endeavour
                   stand out from the crowd                   private and public funds                    between business, research
                - a deeper public appreciation of            - raise our business profile with            and the NHS
                   major healthcare benefits                   VC and research funders                  - foster the contribution of
                                                                                                          the NHS as both collaborator
                                                                                                          and purchaser




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Scottish Life Sciences Strategy 2011 | Creating Wealth, Promoting Health




dETERMINEd TO REALISE OUR FULL                      A TALENT pOOL OF INTERNATIONAL
VALUE                                               CALIBRE
We must continue to deliver on the                  Our success depends on the quality
promise of our Life Sciences sector and             of our people. Our Life Sciences
realise the full value of its private and           enterprises must attract, retain and
public investments – with new products              develop the best researchers and the
and services, robust businesses and                 most entrepreneurial business leaders.
high-value jobs.
                                                    Our aim is to ensure that we build on
A determined translation of past investment         Scotland’s high reputation in science with a
into visible economic impact is both critical       pool of suitably trained staff and managerial
and urgent: measurable near-term results            leadership that is fit for our international
are essential to maintain the self-confidence       ambitions. Our intention is to see Scotland
of the sector and to enable us to weather           as a place where talented students at all
the ‘perfect storm’ of economic, fiscal and         levels will choose to develop exciting and
regulatory constraints that we currently face.      interesting careers.
This means driving hard to demonstrate the
commercial success and market readiness             Aspirational leadership of both companies
of new products and processes. We’ll focus          and the industry is just as critical.
on strengthening the performance of our
existing companies and our most promising
                                                    A VIBRANT INNOVATIVE CULTURE
prospects by helping them to overcome
                                                    Our over-arching objective is the
route-to-market barriers and exploit quick
                                                    creation of an environment which
growth opportunities both here and overseas.
                                                    stimulates the rapid commercial
                                                    exploitation of leading-edge
ACCESS TO FUNdS FOR BUSINESS                        innovations in areas of Life Sciences
GROWTH                                              in which we have measurable global
We must improve our routes to sources               strengths.
of private and public investment. This
                                                    This requires a culture of shared endeavour
means significantly raising our profile
                                                    between business, universities, research
with venture capital providers and
                                                    institutes and the NHS. It is difficult to
research funders.
                                                    overstate the strategic importance of the
Efficient access to finance is critical. Scotland   NHS in Scotland in this: its dominance of the
is strongly committed to using public finance       healthcare market and access to patients
to pump-prime much-needed private                   means that it has a pivotal role as both a
investment. Although private equity funding         huge purchaser and a powerful sponsor of
raised by Scotland’s firms held up well in the      research that involves the evaluation of new
recessionary conditions of 2008-10, it remains      products and technologies. This will underpin
scarce for an industry that’s cash-hungry.          our Action Agenda.
Life Sciences companies with credible and
robust investment opportunities will need
to be more imaginative in finding routes to
attract venture funds.




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Scottish Life Sciences Strategy 2011 | Creating Wealth, Promoting Health




Our focus for growth
OUR FOCUS will be on the most promising areas of business 

endeavour and institutional research.


                                                      Today’s challenging economic and fiscal            •	 A pipeline of potential stem cell therapies
                                                      environment underlines the need for a                 is being progressed towards the clinic
                                                      Life Sciences Strategy fully focused on               offering hope for those suffering from
                                                      realising the value of private and public             many chronic debilitating diseases.
                                                      investment in the industry.
                                                                                                         Translational Medicine also offers exciting
                                                      This means shaping and directing support           potential to capitalise on Scotland’s tradition
                                                      to those companies currently making a              of medical research and clinical excellence.
                                                      significant contribution to Scotland’s current     Strategic initiatives already mean we’re
                                                      and future growth plans and with the best          now better equipped than ever to progress
                                                      chance of doing so quickly.                        innovations efficiently from bench to bedside:

                                                      In an era of increasing restraint in public        •	 Scotland’s universities and the NHS
                                                      finances, ‘triaging’ of current and future high-      are working together to build a fully
                                                      growth opportunities enables us to target the         integrated platform for world-class
                                                      most promising areas of business endeavour            translational medicine to attract revenue
                                                      and institutional research.                           from clinical trials, create new jobs and
                                                                                                            benefit the local population (for example,
                                                      We have identified several opportunities for          through the Scottish Academic Health
                                                      making a significant economic impact.                 Sciences Collaboration).
                                                      Focus on KEY RESEARCH STRENGTHS                    •	 NHS Research Scotland Permissions
                                                                                                            Coordinating Centre (NRS-PCC) is easing
                                                      Regenerative Medicine and Stem Cells                  access to Scottish Health Boards for multi-
                                                      offer a massive opportunity to capitalise on          centre clinical researchers.
                                                      Scotland’s world-ranking research strengths.
                                                      Since 2004, Scotland has invested some             •	 Generation Scotland, and other local
                                                      £100m to support the development of                   biorepositories, coupled with Scotland’s
                                                      technologies underpinning regenerative                electronic patient record system,
                                                      medicine:                                             offer a unique resource to improve
                                                                                                            understanding of major diseases and help
                                                      •	 The MRC Scottish Centre for Regenerative           design and develop new treatments.
                                                         Medicine houses the UK’s most advanced
                                                         pilot-scale embryonic stem cell clinical        Emerging market opportunities in Stratified
                                                         manufacturing facility.                         Medicine, Wellness and Assisted Living may
                                                                                                         provide significant opportunities for Scotland:
                                                       •	 The Scottish Stem Cell Network now has
                                                          more than 1,200 members including              •	 increased clinical research revenues to 

                                                          international experts from commercial,            academia and the NHS 

                                                          clinical and academic backgrounds.
                                                                                                         •	 wider exposure of Scotland’s patients to
                                                      •	 A rapidly expanding cluster of companies           innovative products
                                                         forming a comprehensive supply chain, to
                                                                                                         •	 more collaborative business opportunities
                                                         support the development, manufacture
                                                                                                            with international companies
                                                         and trial of regenerative medicine tools
                                                         and therapies. It is well placed to capture     •	 greater market access for our indigenous
                                                         new business in this rapidly moving field.         healthcare companies




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Scottish Life Sciences Strategy 2011 | Creating Wealth, Promoting Health




Focus on KEY BUSINESS AREAS                                             Pharma outsourcing was valued at around                   Indeed, Scotland is already capitalising on
                                                                        $57bn in 2009.† As pharma companies                       these emerging opportunities. Over the
Medical technology provides one of                                      downsize internal R&D, they’re turning to                 next four years, £10m will be invested to
Scotland’s strongest commercial bases with                              nimble, highly-specialised SMEs as well as                improve the care of more than 10,000 elderly
a quarter of our Life Sciences companies.                               world-leading academic and clinical centres               and people with disabilities by growing the
They’re well supported by specialist providers                          to bolster their product portfolios. That’s               Scottish telehealthcare sector through the
of intellectual property, legal services,                               the opportunity for our new generation of                 Scottish Assisted Living Demonstrator – the
regulatory affairs as well as product design                            Life Sciences companies and researchers                   first joint project between the Technology
and manufacturing services.*                                            clustered around our ‘knowledge hubs’.                    Strategy Board (TSB) and the Scottish
                                                                                                                                  Government. NHS 24, Highlands & Islands
Medtech contributes around a quarter of                                 Focus on EMERGING OppORTUNITIES                           Enterprise and Scottish Enterprise are involved
Life Sciences GVA and has historically grown
                                                                                                                                  in the development of the Demonstrator,
at well above average rates.** It’s a mature                            Significant global opportunities are also                 which is the first of several to be established
sector with emerging opportunities in                                   emerging in several new areas – both within               across the UK by the TSB under its DALLAS
assisted living and telehealth. Our Medtech                             and outside human healthcare disciplines.                 (Demonstrators of Assisted Living Lifestyles at
Road Map*** has been designed to support                                These are very broad themes comprising                    Scale) programme.
companies during the development of new                                 many different markets and technologies,
healthcare products and enhance their                                   some of which are potentially disruptive.                 These thematic areas place Life Sciences at
engagement with NHSScotland from product                                However, they offer opportunities worthy                  the interface with many very different sectors
inception through to sales. The first results of                        of further exploration by our company and                 – information technology, food and drink,
this initiative look promising. Opportunities in                        research base.                                            energy, agriculture, textiles – and serve to
this market are characterised by:                                                                                                 highlight the world of opportunity awaiting
                                                                        •	 Assisted Living offers important                       Life Sciences in Scotland.
 •	 accelerating demand for more user-

                                                                           opportunities in telehealth with the
    friendly diagnostics as use shifts from 

                                                                           growth of applications for remote
    hospital labs to GP surgeries and the 

                                                                           diagnosis, treatment and management of
    home 

                                                                           chronically ill and elderly patients.
 •	 growing popularity of digitally 

                                                                        •	 Stratified Medicine plays to
    enabled devices to help the elderly live 

                                                                           Scottish strength in the evolution of
    independently and be professionally 

                                                                           next generation diagnostics for drug
    monitored

                                                                           development and patient stratification.
 •	 increasing need for devices to minimise
                                                                        •	 Wellbeing is creating new markets in
    invasive surgery, reduce healthcare costs
                                                                           nutraceuticals – food additives beneficial
    and improve patient recovery
                                                                           to maintaining health and preventing
pharma services comprise a comprehensive                                   disease.
and dynamic sector offering contract
                                                                        •	 Sustainability sees the promotion
research, contract manufacturing, clinical
                                                                           of industrial biotechnologies such as
trial management and other services
                                                                           synthetic biology to develop greener
including testing and compliance, regulatory
                                                                           sources of base chemicals.
consulting, tissue provision, genetic testing
and provision of other specific research
enabling services.

* Scottish Government and Scottish Enterprise Analysis (using its Source Book definition of Life Sciences)
** 2008 figures from the Office of National Statistics and Scottish Enterprise
*** http://www.scotland.gov.uk/Publications/2010/11/02085517/0
†
  Global Pharmaceutical Outsourcing - Trends and Growth Opportunities, Frost and Sullivan 2009



                                                                                                        11
Scottish Life Sciences Strategy 2011 | Creating Wealth, Promoting Health




A call to action
We require the vigour, talent and enthusiasm of all
our stakeholders to secure a vibrant and commercially
outstanding Life Sciences sector.


                                                      This Strategy is founded on the                 sector, its development depends on the
                                                      achievements of Scotland’s Life Sciences        vigour, talent and enthusiasm of all our
                                                      industry in recent years. It takes account      stakeholders.
                                                      of the challenges that inevitably result
                                                      from the recent global financial and            This partnership will now be vital to achieve
                                                      economic conditions. It responds                the ambitious growth aspirations set out in
                                                      ambitiously to the opportunities for            the Strategy. Overseen by LiSAB, the Action
                                                      growth of our Life Sciences community.          Plan will drive the delivery of the Strategy,
                                                                                                      requiring the alignment of the investment
                                                      The Strategy refresh results from extensive     and activity of partners across private, public
                                                      consultation with our Life Sciences players –   and academic sectors.
                                                      our businesses, our academic and research
                                                      institutions, the National Health Service,      The areas set out in the Strategy’s Action
                                                      as well as industry bodies, the Scottish        Agenda will form the building blocks of the
                                                      Government and its agencies.                    Action Plan. The Action Plan will be published
                                                                                                      in the summer of 2011. It will remain a living
                                                      This Strategy is, therefore, unambiguously      document, enabling LiSAB to monitor delivery
                                                      ‘owned’ by our private and public sector        and progress towards our 2020 growth
                                                      agencies in Scotland. To secure a vibrant       mission, while nimbly responding to new
                                                      and commercially outstanding Life Sciences      opportunities as they arise.




                                                                            12
About the Life Sciences Advisory Board 





Formed in May 2009, the Life Sciences Advisory Board (LiSAB) is a joint industry,
enterprise and government strategy team with a very active remit to develop, drive
and deliver the Life Sciences strategy in Scotland. It plays a crucial role in ensuring
Scotland has the best possible environment for fledgling technologies
and established Life Sciences companies alike.

LiSAB fosters support and discussion between key players in the Life Sciences sector,
and those responsible for government policy-making at the very highest level.

LiSAB consists of representatives across the spectrum of the Life Sciences
community including CEOs and senior managers from pharmaceutical,
biotechnology, medical devices and diagnostics companies, contract research
organisations, the research community, the NHS and Scottish Government.

LiSAB’s remit is to set the overall strategy for the growth of the Life Sciences sector
in Scotland, providing advice to government and the public sector on key issues
affecting Life Sciences and to help develop a creative environment where ingenuity
and innovation can create jobs and wealth for Scotland. For current members of
LiSAB please see www.lifesciencesscotland.com and click on the “About Us” link.
If you require this publication
in an alternative format and/or
language please contact us via
www.lifesciencesscotland.com
to discuss your needs.

SE/3350/Mar11

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Scottish life sciences strategy 2011

  • 1. Scottish Life Sciences Strategy 2011 Creating Wealth, Promoting Health 2020 Vision
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  • 3. Scottish Life Sciences Strategy 2011 | Creating Wealth, Promoting Health Contents 02: Foreword The global and economic imperatives driving this refresh of the 2020 Strategy for Scotland’s Life Sciences are outlined by the Co-Chairs of the Life Sciences Advisory Board, Dr John Brown and Nicola Sturgeon MSP, Deputy First Minister and Cabinet Secretary for Health and Wellbeing. 03: Our mission To double the economic contribution of Life Sciences to Scotland by 2020. 04: Our vision To make Scotland the location of choice for business, investors and talented people, while securing Life Science’s contribution to Scotland’s economic growth. 05: Our challenge The industry stands at the intersection of three mega-trends – in demographics, the environment and technology. 06: Our strengths Scotland’s Life Sciences enjoy critical strengths in key business areas, business diversity, research and innovation, start-up creation and infrastructure. 07: Our strategy for success Our prime objectives are to anchor key businesses in Scotland, build more resilient companies, and attract inward investment, talent and aspiring leaders. 08: Our action agenda Our six-point plan is to accelerate growth with the emphasis on business and institutional collaboration. 10: The focus for growth We will target support on the most promising areas of business endeavour, institutional research and significant emerging opportunities. 12: A call to action Next steps for all our stakeholders. Acknowledgements: LiSAB would like to thank local companies, researchers and the NHS for permission to reproduce their photographs. 1
  • 4. Scottish Life Sciences Strategy 2011 | Creating Wealth, Promoting Health Foreword In 2005 the Life Sciences sector outlined The global need for first-class healthcare Life Sciences is an industry in which Scotland its 2020 Vision for Achieving Critical solutions will continue to drive innovation already has an international competitive Mass. This Vision still remains in our within Scottish Life Sciences. This, in advantage with huge potential. We can sights. However, we face a very different combination with emerging markets in do even more to harness this potential in world today. The deepest global developing economies, offers significant terms of higher growth; high value jobs; recession in a generation resulted in opportunities for the sector over the increased exports; to build on the strengths a period of declining output for the coming years. Our ambition is to double the that Scotland has in innovation; in medical Scottish economy, but growth returned economic contribution of Life Sciences to the R&D; in technology and manufacturing in 2010, and the latest forecasts show Scottish economy by 2020. capability. And we must do so in even closer that this is likely to accelerate in partnership, because our ability to work 2011. It is within this context that the This is aspirational, however it is also collaboratively across Scotland is one of our Life Sciences Advisory Board (LiSAB), achievable. Such significant growth in the biggest advantages. working closely with the Life Sciences sector will allow Scotland to build on our sector across Scotland, has reviewed the position as a location of choice for Life That is why this review of our Life Sciences Life Sciences Strategy. Sciences people, businesses, and capital, Strategy has been undertaken - to create allowing us to compete in the global an environment in Scotland that will help economy. the Life Sciences sector to create significant growth. We believe the Life Sciences sector To achieve this growth, our Life Sciences can do this, and help grow the Scotland of Strategy focuses on high productivity our future. sub-sectors including clinical, translational and regenerative medicine, and highlights significant areas of Scottish business strength in Medtech, Diagnostics and Pharma services. The Strategy also outlines the need to anchor, build and attract key businesses, people and capital, building on Scotland’s Nicola Sturgeon, MSP Dr John Brown, FRSE reputation as a location of choice for Life Deputy First Minister and Co-Chair, Life Sciences Sciences companies, and on the powerfully Cabinet Secretary for Advisory Board Health and Wellbeing collaborative nature of the Scottish Life Co-Chair, Life Sciences Sciences community. Advisory Board 2
  • 5. Scottish Life Sciences Strategy 2011 | Creating Wealth, Promoting Health Our mission OUR 2020 MISSION is to double the economic contribution made by Scotland’s Life Sciences Industry. We have set an aspirational target for Times are tough We’re doing this at a We’re confident that it is realistic to aim to 2020 of doubling turnover to £6.2bn time of not only unprecedented challenge double current turnover and GVA in the next and Gross Value-Added (GVA) to £3bn. but also attractive opportunity. At home, ten years. That certainly accords with the we’re operating in an era of pronounced aspirations of our businesses themselves. The Life Sciences industry in Scotland fiscal restraint. Abroad, our businesses are is recognised by both UK and Scottish seeking to make headway in an increasingly Analysis of some 400-plus companies Governments as one with high growth volatile and competitive environment. suggests the industry should have both the potential and the capacity to contribute However, emerging markets of the East and strength and vigour to sustain the good significantly to the nation’s productivity. changing business models are all driving new growth of the past decade. The excellent opportunities for our local companies. performance of sub-sectors such as Scotland hosts the UK’s second largest Life medical technologies and contract research Sciences cluster and one of the most sizeable The challenge ahead The economic crisis organisations gives us a strong foundation in Europe.* The sector contributes some has dented confidence across many business for growth. £1.5bn of GVA a year and turnover worth sectors and has so far had a mixed impact £3.1bn to the Scottish economy.** on Life Sciences in Scotland. At our least And there’s significant further potential in ambitious, we could seek to secure recovery breakthrough areas such as regenerative Our central challenge is to devise a Strategy medicine, stratified medicine and applications and then work on the basis of ‘business as that builds on this growth to capitalise on of Life Sciences beyond human health in usual’. The alternative is to use the recovery the sector’s promise. The Strategy must also markets such as energy and the environment. to kick start a bold new era for Life Sciences be sufficiently agile to capture emerging businesses in Scotland through a decisive, opportunities in this fast moving industry. targeted plan of action as set out in this Strategy. * Life Sciences Key Sector Report – Scottish Government, Nov 2009 ** Scottish Government and Scottish Enterprise Analysis (using Source Book definition of Life Sciences) 3
  • 6. Scottish Life Sciences Strategy 2011 | Creating Wealth, Promoting Health Our vision OUR 2020 VISION is for our Life Sciences industry to be a significant contributor to Scotland’s sustainable economic growth and to establish Scotland as the location of choice for Life Sciences companies. The over-arching aim of this refreshed • Key sites: We’ll attract innovative • The business and employment Strategy is to consolidate and expand companies to locate in Scotland, linking opportunities in Life Sciences have the role of the Life Sciences industry them to our world-class research base. established Scotland as a prime market as a dynamic contributor to Scotland’s We will, for example, continue to find for both international and domestic economic growth and social wellbeing. tenants for our 100-acre Edinburgh investors and mobile talent. We have made excellent progress since BioQuarter (see aerial photo below). the launch of the 15-year Strategy back • The cohesion of the Life Sciences industry in 2005; we now plan ambitious short • Step change: We’ll continue to support has boosted its development of new and medium-term goals to fully realise the evolution and growth of sustainable products and services, measurably that 2020 Vision. innovative companies capable of accelerating their commercial transforming their operational scale. exploitation. QUICK WINS Our refreshed Strategy underlines the LONG TERM Health promotion importance of taking immediate steps to Beyond this, there are two longer-term Our vision is of a Scotland where: achieve our primary goal of establishing yardsticks against which we’ll monitor the progress of this Strategy. • Our National Health Service (NHS) moves Scotland as an international location centre stage as a key customer for of choice among Life Sciences players, Wealth creation Scottish Life Sciences businesses and a collaborators and investors. Our vision is of a Scotland where: pivotal stimulator of innovative products To achieve this within the next three years, a and services. • More of our indigenous Life Sciences number of stretching targets have been set: companies have grown into major • There is a more positive appreciation • Key deals: We’ll secure international international businesses with increased of the opportunities to participate in partnerships and inward investment – turnover and significant added-value. trials of the most advanced healthcare including in stem cells and regenerative products, and the associated economic, • Our Life Sciences sector has become an employment and investment benefits of medicine; and clinical and translational important source of additional high-value Scotland’s participation. medicine – to realise the value of prior jobs and managerial ambition. investments. • Our people increasingly benefit from the early adoption of innovations in diagnosis and treatment, contributing to a better quality of life and longer life expectancy. • The people of Scotland and our policy makers understand the role of Life Sciences in creating a healthy and low carbon environment through advanced applications in food and fuel. 4
  • 7. Scottish Life Sciences Strategy 2011 | Creating Wealth, Promoting Health Our challenge Our Life Sciences sector stands at the intersection of three mega-trends with massive global potential. There’s no denying the testing global GLOBAL TRENdS LOCAL OppORTUNITIES economic and financial conditions that Yet none of this can fully conceal the truly Out of all this grows a wide range of provide the context for this Strategy. huge global potential of the Life Sciences expanded and new business opportunities. These are tough times in most business sector. It stands at the intersection of three Exploiting them will require equally innovative areas and, for Life Sciences in particular, mega-trends described below. business models. We have identified a the challenge is accentuated by a number of cross-sectoral opportunities – combination of factors peculiar to the demographic The ageing populations of both within and outside human healthcare sector itself. the developed world and the increasing disciplines. We will closely monitor the shape affluence of the more populous emerging of these opportunities as they emerge and The healthcare industry is one whose route economies are together generating entirely develop a more detailed understanding of to market for new products is characterised new markets. We’re seeing this most clearly how Scotland might derive economic benefit by high R&D costs. All sub-sectors are in: from them. experiencing pronounced downward pressures on product prices, increased • the improving treatment and The areas identified as offering significant regulatory oversight, and with reduced public prevention of chronic diseases opportunity worthy of further exploration healthcare budgets, an increasing demand include: • an increasing desire for, and ability to, for evidence of the cost-benefit of new enable independent assisted living • Assisted Living – aids to mobility, products. rehabilitation, patient monitoring and • a rising expectation of continued mental The shape of the pharmaceutical industry management to enhance independent and physical wellbeing with ageing is radically shifting as it is forced to address lifestyles. the effectiveness of product pipelines; • a growing pressure for more cost- the impact of diminishing returns from • Stratified Medicine – use of molecular effective and accessible healthcare ‘blockbuster’ drugs as patents expire; and diagnostics to identify optimal treatments both competition (and opportunity) from the • an accelerating impetus from for patients. East. Medical technology companies also face treatment to prevention of disease • Wellbeing – plant, animal and increasingly onerous regulatory requirements Environmental Today’s sharpened focus on nutritional sciences aimed at promoting prior to product launch. halting climate change and reducing pressure health benefits in food and drink. For Life Sciences’ companies there is fierce on the planet’s finite natural resources • Sustainability – technologies that competition for limited supplies of private confronts us with new challenges – how advance the ‘green agenda’ in the use of finance and the public stock markets are a we live, how our businesses operate, how the world’s scarce resources. hostile environment for many of our new government policies will be implemented. companies. These challenges are opening up new opportunities to apply Life Sciences outside traditional healthcare markets. Technological Huge advances in Life Sciences are combining with massively expanded capabilities in other disciplines such as Information Technology. This promises novel solutions to address these global challenges in ways inconceivable a decade ago – such as tailoring medicines to an individual’s own needs. 5
  • 8. Scottish Life Sciences Strategy 2011 | Creating Wealth, Promoting Health Our strengths We’re building on solid foundations – an industry whose diversity and depth provide springboards for growth. We’re building on solid foundations. This diversity widens the scope for multiple Strength in SIZE and INFRASTRUCTURE Today, Scotland has a diverse Life collaborative opportunities between our Scotland benefits from its compact Sciences base with more than 640 commercial players and our world-ranking geography and the unified approach of its organisations employing over 32,000 academic research base. It ensures we’re business, research, educational and policy people.* Since 1998, we have returned not made vulnerable by over-reliance on makers. We enjoy short, uncomplicated lines a 6% compound annual growth rate, any single sector and can grasp emerging of communication. That makes for strong increasing turnover from £1.8bn to opportunities in lucrative, global markets. partnerships and effective policy-making. £3.1bn.** Strength in RESEARCH and INNOVATION Our centralised healthcare system offers We’re one of the UK’s leading regions for new We have a long-established international unique patient identification and tracking Life Sciences business creation and we’re a reputation for excellence in basic, applied and processes. We have accelerated researchers’ successful investment magnet: even in the clinical research in Scotland. access to clinical trials within our Health toughest conditions, venture funding raised Boards. We have established Scotland as one by our Life Sciences enterprises held up well The Research Assessment Exercise (RAE), of the world’s top ten centres for biomedical in 2010, more than three times the 2005 which evaluates the quality of UK research research and exploitation. total.*** institutions, provides independent confirmation that Scottish institutions These strengths mean we can focus on This track record is based on several have world-leading research strengths in areas where Scotland has the potential to measurable strengths. many areas of Life Sciences (for example develop sustainable global competitive neurosciences, cancer, immunology and advantage. We’re nationally collaborative to Strength in OUR COMpANY BASE cardiovascular disease) and also non-human be internationally competitive. Two sectors of the human healthcare industry health-related areas (such as agriculture and comprise our strongest springboard for veterinary medicine). growth in Scotland: Significant prior investment has further • Medical technology, covering deepened our research excellence in stem diagnostics and medical devices, cells and regenerative medicine. We comprises more than 150 companies, also boast a broad base of translational ranging from global multinationals to and clinical medicine skills and resources. university start-ups. Both areas are now ripe for translation into new business opportunities and as targets for • pharma services, encompassing more inward investment. than 60 companies offering contract research in manufacture, pre-clinical, Strength in BUSINESS CREATION clinical and biosafety testing, and Scotland had the UK’s largest number of Life many more businesses providing allied Sciences start-ups per head of population professional services (such as intellectual (2005-09) according to an independent property, legal and regulatory advice). report.† “Scotland takes top slot,” it says – partly influenced by the quality of university Strength in BUSINESS dIVERSITY research and partly by Scottish Enterprise’s In addition there are several other small, but “significant support to promote the sector.” growing, clusters of companies serving other markets including animal health, consumer care, agriculture, food and drink innovations, and environmental technologies. * 2010 figures from Scottish Enterprises’s Life Sciences Source Book ** 2008 figures from the Office of National Statistics and Scottish Enterprise *** Data derived from Young Company Finance † UK Life Sciences Start Up Report 2010, Mobius Life Sciences 6
  • 9. Scottish Life Sciences Strategy 2011 | Creating Wealth, Promoting Health Our strategy for success OUR 2020 STRATEGY synthesises three routes to an attractive, dynamic Life Sciences cluster in Scotland. Our Strategy is to concentrate efforts on those areas where we consider the greatest impact can be made during the next decade while also delivering near-term returns for the Scottish economy. Our refreshed Strategy therefore synthesises three core objectives of fundamental importance to a growing and sustainable Life Sciences cluster in Scotland. Key objective: ANCHOR Key objective: BUILd Key objective: ATTRACT We must create an attractive, We must create a more robust We must strengthen our dynamic environment to business base out of the broadly- ability to attract key skills and retain our prized population based population of largely management talent, as well as of businesses. In today’s highly small players. We need to assist investment from both companies mobile business environment, companies to increase their and financial institutions. That Scotland has to be a competitive chances of achieving sustainable can be done only by fostering a place for a company to prosper on growth. dynamic, innovative environment, the global stage. with effective marketing of Scotland’s unique offering. We must embed the significant Previous interventions have put We need to help our entrepreneurs economic contribution made by Scotland ‘on the map’ as a generator craft opportunities that ‘stand out our key players. They make a vital of Life Sciences start-ups. But, typically, from the crowd’ among business contribution to our goals for turnover only a few of our smaller companies propositions to venture funders. We and high-value, ‘sticky’ jobs. They succeed in sustaining consistent high need to target new sources of funding supply advanced skills, ambitious and growth. We therefore need to think such as corporate venture capital and talented management, and ready creatively about how to support faster we must redouble our efforts to win access to markets. growth of our Life Sciences businesses. mobile business investment. Inward investors have been, and remain, We must be explicit about Scotland’s That means improved harnessing critical growth generators. essential contribution to the business of our academic and commercial success of companies located here: capabilities to accelerate new product Equally important is strengthening access to world-leading academic and service development. It means our human capital: attracting and clinical research; the strong, strengthening business offerings by management and leadership talent is comprehensive supply chain from building comprehensive supply chains vital if we are to steer Scotland’s Life R&D to manufacture and clinical and encouraging business-to-business Sciences towards greater international trials; a supply of suitably skilled staff. collaboration. success. Also essential is a pool of Scotland’s compelling package will suitably trained staff of all levels to encourage compaines to locate here, meet the growth needs of a diverse stay and grow. range of Life Sciences operations. 7
  • 10. Scottish Life Sciences Strategy 2011 | Creating Wealth, Promoting Health Our action agenda OUR ACTION AGENdA will address those business-critical areas with the clearest need for concerted action. In Scotland, the Life Sciences industry those business-critical areas with the clearest A STRONG SHAREd MARKETING has a track record of good growth need for targeted and concerted action. pROpOSITION and one whose global opportunities These form the key components of our We need to stand out from the crowd. promise to sustain that impetus. We Action Agenda. That’s the imperative behind clear have a strong, broadly-spread pipeline marketing of Scotland’s promising of companies at various stages making SUCCESS THROUGH COLLABORATION message at home and abroad. us less vulnerable to systemic failure. Our objective is to encourage We have an enviable international intensified partnerships which will In the international marketplace, a clear reputation in research and a high swiftly deliver the fullest commercial voice is essential if we are to win in the face enterprise birth-rate. So we are well opportunities from our research and of intensifying competition. This means positioned to meet the challenges with business base. promoting a well articulated business confidence and vigour. proposition to promote Scotland’s global The key is collaboration – both business- standing as a location of choice. Faced with today’s testing economic and to-business and university-to-business – to financial challenges, however, some tough accelerate the process of getting products On the domestic front, there’s also a powerful decisions lie ahead. Ever more limited and services to market. That means need to articulate the considerable social resources must clearly be concentrated for increasing the commercial partnerships and benefits of a dynamic Life Sciences industry. the highest impact. We need to be able ‘marriage-broking’ mergers and acquisitions to compete on the global stage and grasp to strengthen our business environment. Scotland’s position at the leading edge of emerging opportunities where economic It means increasing the assessment, innovative healthcare development gives our benefit for Scotland can be gained. sponsorship and uptake of innovative product people access to more efficient and ground- development by the National Health Service, breaking techniques of healthcare and Working closely with the Life Sciences raising the tempo of contract work, and patient management. community, we have therefore identified deepening our market penetration. SUCCESS THROUGH dETERMINEd TO REALISE A TALENT pOOL OF COLLABORATION OUR FULL VALUE INTERNATIONAL CALIBRE - encourage intensified business - capitalise on our private and - encourage our best talent and research partnerships public investments to make careers here - swift realisation of our fullest - hasten routes to market for - attract and develop the most commercial potential new products and services entrepreneurial business leaders A STRONG SHAREd ACCESS TO FUNdS FOR A VIBRANT INNOVATIVE MARKETING pROpOSITION BUSINESS GROWTH CULTURE - robust business propositions to - improve access to sources of - a culture of shared endeavour stand out from the crowd private and public funds between business, research - a deeper public appreciation of - raise our business profile with and the NHS major healthcare benefits VC and research funders - foster the contribution of the NHS as both collaborator and purchaser 8
  • 11. Scottish Life Sciences Strategy 2011 | Creating Wealth, Promoting Health dETERMINEd TO REALISE OUR FULL A TALENT pOOL OF INTERNATIONAL VALUE CALIBRE We must continue to deliver on the Our success depends on the quality promise of our Life Sciences sector and of our people. Our Life Sciences realise the full value of its private and enterprises must attract, retain and public investments – with new products develop the best researchers and the and services, robust businesses and most entrepreneurial business leaders. high-value jobs. Our aim is to ensure that we build on A determined translation of past investment Scotland’s high reputation in science with a into visible economic impact is both critical pool of suitably trained staff and managerial and urgent: measurable near-term results leadership that is fit for our international are essential to maintain the self-confidence ambitions. Our intention is to see Scotland of the sector and to enable us to weather as a place where talented students at all the ‘perfect storm’ of economic, fiscal and levels will choose to develop exciting and regulatory constraints that we currently face. interesting careers. This means driving hard to demonstrate the commercial success and market readiness Aspirational leadership of both companies of new products and processes. We’ll focus and the industry is just as critical. on strengthening the performance of our existing companies and our most promising A VIBRANT INNOVATIVE CULTURE prospects by helping them to overcome Our over-arching objective is the route-to-market barriers and exploit quick creation of an environment which growth opportunities both here and overseas. stimulates the rapid commercial exploitation of leading-edge ACCESS TO FUNdS FOR BUSINESS innovations in areas of Life Sciences GROWTH in which we have measurable global We must improve our routes to sources strengths. of private and public investment. This This requires a culture of shared endeavour means significantly raising our profile between business, universities, research with venture capital providers and institutes and the NHS. It is difficult to research funders. overstate the strategic importance of the Efficient access to finance is critical. Scotland NHS in Scotland in this: its dominance of the is strongly committed to using public finance healthcare market and access to patients to pump-prime much-needed private means that it has a pivotal role as both a investment. Although private equity funding huge purchaser and a powerful sponsor of raised by Scotland’s firms held up well in the research that involves the evaluation of new recessionary conditions of 2008-10, it remains products and technologies. This will underpin scarce for an industry that’s cash-hungry. our Action Agenda. Life Sciences companies with credible and robust investment opportunities will need to be more imaginative in finding routes to attract venture funds. 9
  • 12. Scottish Life Sciences Strategy 2011 | Creating Wealth, Promoting Health Our focus for growth OUR FOCUS will be on the most promising areas of business endeavour and institutional research. Today’s challenging economic and fiscal • A pipeline of potential stem cell therapies environment underlines the need for a is being progressed towards the clinic Life Sciences Strategy fully focused on offering hope for those suffering from realising the value of private and public many chronic debilitating diseases. investment in the industry. Translational Medicine also offers exciting This means shaping and directing support potential to capitalise on Scotland’s tradition to those companies currently making a of medical research and clinical excellence. significant contribution to Scotland’s current Strategic initiatives already mean we’re and future growth plans and with the best now better equipped than ever to progress chance of doing so quickly. innovations efficiently from bench to bedside: In an era of increasing restraint in public • Scotland’s universities and the NHS finances, ‘triaging’ of current and future high- are working together to build a fully growth opportunities enables us to target the integrated platform for world-class most promising areas of business endeavour translational medicine to attract revenue and institutional research. from clinical trials, create new jobs and benefit the local population (for example, We have identified several opportunities for through the Scottish Academic Health making a significant economic impact. Sciences Collaboration). Focus on KEY RESEARCH STRENGTHS • NHS Research Scotland Permissions Coordinating Centre (NRS-PCC) is easing Regenerative Medicine and Stem Cells access to Scottish Health Boards for multi- offer a massive opportunity to capitalise on centre clinical researchers. Scotland’s world-ranking research strengths. Since 2004, Scotland has invested some • Generation Scotland, and other local £100m to support the development of biorepositories, coupled with Scotland’s technologies underpinning regenerative electronic patient record system, medicine: offer a unique resource to improve understanding of major diseases and help • The MRC Scottish Centre for Regenerative design and develop new treatments. Medicine houses the UK’s most advanced pilot-scale embryonic stem cell clinical Emerging market opportunities in Stratified manufacturing facility. Medicine, Wellness and Assisted Living may provide significant opportunities for Scotland: • The Scottish Stem Cell Network now has more than 1,200 members including • increased clinical research revenues to international experts from commercial, academia and the NHS clinical and academic backgrounds. • wider exposure of Scotland’s patients to • A rapidly expanding cluster of companies innovative products forming a comprehensive supply chain, to • more collaborative business opportunities support the development, manufacture with international companies and trial of regenerative medicine tools and therapies. It is well placed to capture • greater market access for our indigenous new business in this rapidly moving field. healthcare companies 10
  • 13. Scottish Life Sciences Strategy 2011 | Creating Wealth, Promoting Health Focus on KEY BUSINESS AREAS Pharma outsourcing was valued at around Indeed, Scotland is already capitalising on $57bn in 2009.† As pharma companies these emerging opportunities. Over the Medical technology provides one of downsize internal R&D, they’re turning to next four years, £10m will be invested to Scotland’s strongest commercial bases with nimble, highly-specialised SMEs as well as improve the care of more than 10,000 elderly a quarter of our Life Sciences companies. world-leading academic and clinical centres and people with disabilities by growing the They’re well supported by specialist providers to bolster their product portfolios. That’s Scottish telehealthcare sector through the of intellectual property, legal services, the opportunity for our new generation of Scottish Assisted Living Demonstrator – the regulatory affairs as well as product design Life Sciences companies and researchers first joint project between the Technology and manufacturing services.* clustered around our ‘knowledge hubs’. Strategy Board (TSB) and the Scottish Government. NHS 24, Highlands & Islands Medtech contributes around a quarter of Focus on EMERGING OppORTUNITIES Enterprise and Scottish Enterprise are involved Life Sciences GVA and has historically grown in the development of the Demonstrator, at well above average rates.** It’s a mature Significant global opportunities are also which is the first of several to be established sector with emerging opportunities in emerging in several new areas – both within across the UK by the TSB under its DALLAS assisted living and telehealth. Our Medtech and outside human healthcare disciplines. (Demonstrators of Assisted Living Lifestyles at Road Map*** has been designed to support These are very broad themes comprising Scale) programme. companies during the development of new many different markets and technologies, healthcare products and enhance their some of which are potentially disruptive. These thematic areas place Life Sciences at engagement with NHSScotland from product However, they offer opportunities worthy the interface with many very different sectors inception through to sales. The first results of of further exploration by our company and – information technology, food and drink, this initiative look promising. Opportunities in research base. energy, agriculture, textiles – and serve to this market are characterised by: highlight the world of opportunity awaiting • Assisted Living offers important Life Sciences in Scotland. • accelerating demand for more user- opportunities in telehealth with the friendly diagnostics as use shifts from growth of applications for remote hospital labs to GP surgeries and the diagnosis, treatment and management of home chronically ill and elderly patients. • growing popularity of digitally • Stratified Medicine plays to enabled devices to help the elderly live Scottish strength in the evolution of independently and be professionally next generation diagnostics for drug monitored development and patient stratification. • increasing need for devices to minimise • Wellbeing is creating new markets in invasive surgery, reduce healthcare costs nutraceuticals – food additives beneficial and improve patient recovery to maintaining health and preventing pharma services comprise a comprehensive disease. and dynamic sector offering contract • Sustainability sees the promotion research, contract manufacturing, clinical of industrial biotechnologies such as trial management and other services synthetic biology to develop greener including testing and compliance, regulatory sources of base chemicals. consulting, tissue provision, genetic testing and provision of other specific research enabling services. * Scottish Government and Scottish Enterprise Analysis (using its Source Book definition of Life Sciences) ** 2008 figures from the Office of National Statistics and Scottish Enterprise *** http://www.scotland.gov.uk/Publications/2010/11/02085517/0 † Global Pharmaceutical Outsourcing - Trends and Growth Opportunities, Frost and Sullivan 2009 11
  • 14. Scottish Life Sciences Strategy 2011 | Creating Wealth, Promoting Health A call to action We require the vigour, talent and enthusiasm of all our stakeholders to secure a vibrant and commercially outstanding Life Sciences sector. This Strategy is founded on the sector, its development depends on the achievements of Scotland’s Life Sciences vigour, talent and enthusiasm of all our industry in recent years. It takes account stakeholders. of the challenges that inevitably result from the recent global financial and This partnership will now be vital to achieve economic conditions. It responds the ambitious growth aspirations set out in ambitiously to the opportunities for the Strategy. Overseen by LiSAB, the Action growth of our Life Sciences community. Plan will drive the delivery of the Strategy, requiring the alignment of the investment The Strategy refresh results from extensive and activity of partners across private, public consultation with our Life Sciences players – and academic sectors. our businesses, our academic and research institutions, the National Health Service, The areas set out in the Strategy’s Action as well as industry bodies, the Scottish Agenda will form the building blocks of the Government and its agencies. Action Plan. The Action Plan will be published in the summer of 2011. It will remain a living This Strategy is, therefore, unambiguously document, enabling LiSAB to monitor delivery ‘owned’ by our private and public sector and progress towards our 2020 growth agencies in Scotland. To secure a vibrant mission, while nimbly responding to new and commercially outstanding Life Sciences opportunities as they arise. 12
  • 15. About the Life Sciences Advisory Board Formed in May 2009, the Life Sciences Advisory Board (LiSAB) is a joint industry, enterprise and government strategy team with a very active remit to develop, drive and deliver the Life Sciences strategy in Scotland. It plays a crucial role in ensuring Scotland has the best possible environment for fledgling technologies and established Life Sciences companies alike. LiSAB fosters support and discussion between key players in the Life Sciences sector, and those responsible for government policy-making at the very highest level. LiSAB consists of representatives across the spectrum of the Life Sciences community including CEOs and senior managers from pharmaceutical, biotechnology, medical devices and diagnostics companies, contract research organisations, the research community, the NHS and Scottish Government. LiSAB’s remit is to set the overall strategy for the growth of the Life Sciences sector in Scotland, providing advice to government and the public sector on key issues affecting Life Sciences and to help develop a creative environment where ingenuity and innovation can create jobs and wealth for Scotland. For current members of LiSAB please see www.lifesciencesscotland.com and click on the “About Us” link.
  • 16. If you require this publication in an alternative format and/or language please contact us via www.lifesciencesscotland.com to discuss your needs. SE/3350/Mar11