Ulysses Advisory Group Işıl Güney, Ph.D. Ulysses Advisory Group Life Sciences Innovation Ecosystem In Turkey

Contents I: Components Of An Innovation Ecosystem II: Life Sciences Innovation Ecosystem In Turkey III: Roadmap For Growing The Life Sciences Innovation Ecosystem in Turkey

Components Of An Innovation Ecosystem Part I

Internal build up and/or import from outside Innovation – The Basic Elements Innovation Government Policy Basic and translational research; Development of human talent, entrepreneurship and competition; Immigration policy; Patent policy; Start-up support; Fund and follow-up projects with clear deliverables; Incentivize R&D investment; Stable and consistent policies overall Financial Capital Public funds; Philanthropic funds; Angel funds; Venture capital financing Human Capital Quality of education and access to training resources; Intellectual fulfillment and financial incentives; Opportunity for career development Technology & Knowhow Internal build up and/or import from outside

Life Sciences Innovation Ecosystem In Turkey Part II

Turkey – population 75 million 18th largest economy in the world Production driven, low-medium tech Objective: Transform into a knowledge-based economy for smart growth 2023 Targets Become one of ten largest economies of the world Become a leading country in R&D; raise R&D expenditure from 0.8% to 3% of GDP Health declared priority area Medicines export: 595m TL; import: 5b TL (2012) Develop first Turkish drug by 2023 Government Incentives From R&D infrastructure all the way to product marketing, attractive incentives from government agencies, including MoDev, MoSIT, MoEcon, TUBITAK, KOSGEB, TUSEB (2017).

Life Science Innovation Ecosystem in Turkey GOVERNMENT POLICY Positives Increased R&D Funding (TUBITAK 1964-2003 cumulative 1.8b TL; 2015 3,2b TL) Support for Establishment of Funds Support of Establishment of TTOs Support Programs (Entrepreneurship; Start-up, incentivizing R&D investment) Immigration policy Room for Improvement Long-term investment for developing human talent and for keeping talent Selection criteria for funding, follow-up and follow-on funding Drawing foreign research organizations into Turkey Patent policy Stability and consistency in policy (innovation and market entry have very long timelines)

Life Science Innovation Ecosystem in Turkey FINANCIAL CAPITAL Fund of Funds Turkey Investment Fund (TIF) 250m TL Turkish Growth and Innovation Fund (TGIF) 200m Eur Seed Funds (relatively easy to find) EIF-supported DCP and ACT -> commercializing applied research from universities Not enough VC funds- limiting step in startup and scale-up There is no life science-dedicated fund in Turkey- we think this is necessary This is a niche area that requires immense knowhow and expertise

Life Science Innovation Ecosystem in Turkey HUMAN CAPITAL Brain Drain Many successful Turkish PhDs opting to work abroad Thousands of Turkish students leave Turkey to receive education; many do not return TUBITAK provides grants to researchers who come back

Life Science Innovation Ecosystem in Turkey TECHNOLOGY & KNOWHOW Internal Build-Up Organic growth and Buildup (slow) Clusters and consortia as platforms of collaboration: INOVITA, ITAM, ISEK Import Returning Scientists (not nearly enough) TUBITAK-NIH support for R&D collaborations Horizon 2020- supporting international collaborations

Life Science Innovation Ecosystem in Turkey TECHNOLOGY & KNOWHOW GAPS Good ideas in academia but no major success stories for innovation in life sciences Technology Transfer- efforts in place but lack of knowhow Commercialization- From bench to the market: Business development; IP management; go-to-market strategy; company formation and team-building; strategic partnerships; financing and exit strategy

Roadmap For Growing The Life Sciences Innovation Ecosystem in Turkey Part III

Why we believe in Turkey Sector Potential Strong engineering base, strong scientific diaspora, entrepreneurial drive, government support, much room for growth within an emerging economy Market Potential Geography: Links to Europe, Middle East and Turkic countries Science We come across interesting technologies- good work should not go to waste Our experience tells as it can be done We have contributed to success stories in similar contexts

Vision for Turkey: Product Development Partnership (PDP) PDP: a hosted international R&D initiative with a public good mission that also supports the commercial needs of its private sector partners Leverages public and philanthropic financial resources with those contributed by academia and industry partners Focus on translational and clinical research and commercialization, with some basic research Allows for cost minimization by virtualization, by tapping partner R&D resources

Vision: Product Development Partnership Host government or industry establishes the legal entity and contributes seed funding Once established, PDP operates as an independent entity with independent expert scientific advisory board; builds research partnerships, develops R&D portfolio and product pipeline, raises money from various funding segments

Vision for Turkey: Product Development Partnership Semi-virtual: Operate out of its base in Turkey, with a network of partner institutions from within and outside of Turkey Ideal for Turkey and partners -> facilitates talent import, which Turkey needs -> facilitates access to technical knowhow, which Turkey needs -> partners benefit from Turkish government funds and incentives Win-win model for all partners: Rights to products developed are shared, with industry reserving commercial rights and governments distributing for public good. Excellent for marketing and government relations.

The Gaps UAG Can Fill in Turkey Innovation Government Policy Policy advice and development focusing on best practices around the globe; Creation of public-private partnerships (discovery research to product) Financial Capital Fundraising (seed through IPO); Fund management; Mergers and Acquisitions Human Capital Talent management; Interim hands-on management during start-up or critical organizational transitions Technology & Knowhow Commercialization: from bench to market; Technology Transfer and Licensing; R&D portfolio management