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Area Infrastructure Information Technology Legal-Regulatory Intellectual Property Labor Education Public Attitude Financing Industry Government Universities and Colleges Nonpro t Institutions Private Investors Venture Capital Strategic Alliances Biotech Industries Pharmaceuticals Agriculture Military Computing Medicine Biomaterials
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Note One third of the population is online Less cumbersome than in North America or Europe Compatible with system in North America High percentage of life scientists Numerous centers of excellence Supports controversial areas of research Behind the government in nancing Strong backing by government The challenge is commercializing academic research Strong funding Domestic and foreign investment Most funding for early stage companies Stem cell research with Israeli and Japanese researchers Focus on generics for export For domestic consumption and export Subsidized by the United States Centers are few in number Extensive experience in the medical market Modest development for internal use
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FIGURE 7.23 Summary of regional analysis of the biotech industry in Israel. stacles facing China, including varying degrees of compliance with interna tional biotech patent protection and limited biotech infrastructure. South Korea, Taiwan, Singapore, Malaysia, and Thailand each have markedly different approaches to carving out a niche in the Asian biotech arena, from growing management talent as in Taiwan, to becoming a regional center for drug development and clinical trials, as in Singapore. However, despite signi cant cultural, economic, and geographical difference in the Paci c Rim countries, a common trait is a long-term commitment from their governments. India, with its expertise in information technology outsourcing to the United States and Europe and in reverse-engineering drugs, is uniquely po sitioned to be a leader in pharmaceutical research and development out
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sourcing. Its main impediment to achieving this position is a lack of intel lectual property protection for pharmaceutical products. The Australian biotech industry faces signi cant challenges from other parts of Asia. Even if government, industry, and academia can adequately focus on moving ideas to practical products, Australia will eventually have to compete head-on with countries such as Singapore, China, and Taiwan. These countries may not have a tradition of excellence in the life sciences, but their expertise in engineering and marketing high-technology products may make Australia s advantage of life science expertise increasingly less signi cant. The African continent is characterized by poverty and political tur moil. South Africa is making a bid for the potential upside of biotech, but it lacks an infrastructure capable of competing with world-class players, such as Japan. Israel s knowledge-based economy has a tradition of excel lent research in the life sciences, but it doesn t have the means of capitaliz ing on much of this research. In addition, its biotech industry, like other sectors of its economy as well as security, is not self-sustaining, but is de pendent on external support from the United States. In evaluating the status of biotech in Africa, it s important to note that there isn t a total lack of activity in the African biotech sector outside of Is rael and South Africa. Jordan is a signi cant supplier of pharmaceutical for countries in the Middle East, Africa, and the European Union, for exam ple. Pharmaceutical production is the third largest source of foreign cur rency for Jordan, with a market of about $200 million in 2002. Similarly, the Nigerian government committed $22 million per annum in 2002 for the development of the National Biotechnology Development Agency (NBDA), which is charged with enhancing biotech collaboration between the government, academia, and industry. However, as in South Africa, the infrastructure and nancing are inadequate. As a result, the ini tiative may take a decade or more to produce commercially viable results, assuming highly trained scientists can be trained or recruited to perform the required research and development.
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