Printing qrcode in .NET REGIONAL ANALYSIS
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FIGURE 7.17 Major biotech activity areas in India.
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including the southern states of Tamil Nadu, Andhra Pradesh, and Kar nataka, are establishing biotech parks in their territories. Aside from sales of ces, the multinational pharmaceutical companies generally avoid India because of the disregard for pharmaceutical patents and the inability to patent gene sequences. Thus, the government is the source of nearly all of research and development funding. Despite this lack of outside funding, India has been able to contribute signi cantly to the In ternational Human Genome Project and the sequencing of rice, through its Center for Human Genomics. A pro le of India s biotech industry is shown in Figure 7.18. Infrastructure India s biotech infrastructure is rated as poor, with the exception of information technology and education, which receive a fair rating. For India to compete successfully in the world biotech market, it will have to continue to upgrade its modest information technology infra structure. Even though India has a vigorous information technology out sourcing industry, this activity is limited geographically. Biotech research
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Rating Fair
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Note Most communications and computing resources are antiquated, but improving, especially in the key cities Politics surrounding compliance with WTO requirements are problematic Reverse engineering of drugs common Many of the best scientists leave for better opportunities elsewhere Several world-class universities, but no critical mass in life sciences History of farmer rejection of transgenic cotton Research and development investment low due to price controls Government support through Department of Biotechnology Collaboration inhibited by intellectual property issues Financing primarily through governmentcontrolled sources and banks Little private investment Lack of venture capital limits development Companies wary of weak intellectual property protection Predominantly domestic, with overlap in product lines and price controls Accounts for half of nonpharmaceutical biotech No commercialization India is a world leader in information technology and software development Pockets of excellence Insigni cant commercialization
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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
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Poor Poor Poor Fair Poor
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Fair Poor
FIGURE 7.18 Summary of regional analysis for the biotech industry in the
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and development centers outside of the programming belts have limited ac cess to the Internet. Furthermore, even the best labs don t have latest-generation supercomputer power. On the legal-regulatory front, politics surrounding compliance with the World Trade Organization regarding pharmaceutical and genome patents have hampered progress. Many pharmaceutical rms avoid India because their drugs can be transformed into domestic generic equivalents by India s scientists without legal repercussions. Labor receives a poor rat ing because of the brain drain from the best biotech universities. Many of the best-educated scientists in India leave for the United States and Europe to receive much higher salaries than are available in India. Quality higher education is one of India s bright spots. However, un like areas of the United States, Canada, or Europe, the centers of biotech activity are disparate, and there isn t a critical mass of biotech researchers in any one area to propel the eld forward. Furthermore, the public atti tude toward biotech is poor because of a number of missteps by the indus try in the recent past regarding biotech crops. For example, massive failure of transgenic cotton introduced into India by Monsanto triggered lawsuits from farmers, who were promised increased yields, not cata strophic crop failure. Financing The nancing of biotech in India is predominantly from the government, which is rated as good. All other sources listed in Figure 7.18 receive a poor rating. As noted earlier, the venture capital nancing is limited, which in turn limits development. Most of the components of biotech nancing are limited in some way by the lack of enforced intelli gent property legislation. Foreign companies don t invest in research per formed in local universities because company intellectual property might be lost to the public domain. Similarly, companies and universities outside of India avoid strategic alliances because of a lack of enforced patent laws. Biotech Industries The six key biotech industries are rated between fair and poor. The combination of government-mandated drug price controls and a disregard for pharmaceutical patents is a deterrent for most multinational drug companies that would otherwise do business with In dia. Indian scientists are adept at quickly reverse-engineering drugs devel oped elsewhere, thereby creating a de facto generic domestic market despite objection. Price controls decrease the pro t margin, as re ected in a markedly decreased research and development budget for pharmaceuti cal companies. Agricultural biotech, although in its infancy, has perhaps the greatest future in India, given the large population that must be fed. As of 2001, agriculture is second to pharmaceuticals in terms of biotech market share.
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