1. Do regional collaborations matter in biomedicine? The case of Western Sweden Jens Laage-Hellman IMIT and RIDE at Chalmers University of Technology Annika Rickne IMIT, The Dahmén Institute and Lund University

2. Background ”Interactive research” on a regional development project (”Biomedical Development in Western Sweden”) Purpose: study the dynamic mechanisms involved in RIS development Underlying theoretical approach:Innovation systems Functional approach Research activities: Documentation of the early history Survey to biomedical firms Survey to biomedical researchers Present paper: collaboration patterns in industry

3. Research puzzle The interactive character of the innovation process Acquisition and development of knowledge/resources Learning Customers/users, suppliers, universities… Esp. In science-based and knowledge-intensive industries The importance of regional collaboration/networking Tacit nature of knowledge Regions are the locus of innovation Proximity matters! Clustering of firms (e.g. in biotech) Advantageous for individual firms to locate in strong clusters/RIS The role of globalised collaboration/networking

4. Research questions Main question: Do regional collaborations matter in biomedicine? Specific issues : How does the firms value different types of knowledge? Through what types of channels is knowledge identified and acquired? What is the relative importance of different types of partners? What are the reasons for collaboration? To what extent is the geographical dimension important?

5. Research design Case: a) biomedicine, b) Western Sweden Data collection: a) survey, b) complementing interviews NumberResponse rate Total sample22235 % (78 firms) Firms with R&D12346 % (57 firms) Firms without R&D9921% (21 firms)

6. The collaborative patterns in biomedicine: Crucial types of knowledge & their sources

8. Patterns of collaboration

11. Motives for collaboration with companies

12. Motives for collaboration with universities

13. Location of partners

14. Main location of partners (industrial and health care)

15. Location of partnering universities and research institutes

16. Discussion and conclusions 1. Collaboration with business partners a/ Customers Important R&D partners Usually located outside the region - small region/country + niche products - ”borne globals” - need for country-specific adaptations Important for small/young firms to have pioneering customers nearby (e.g. Sahlgrenska University Hospital)

17. b/ Suppliers Almost as important as customers (ESI) Spurred by increasing ”outsourcing” (esp. medtech) Advantageous to have local suppliers (esp. for SMEs) …..but often difficult to find Lack of ”critical mass” in the industry: stimulate entry of supplier firms

18. b/ Suppliers Almost as important as customers (ESI) Spurred by increasing ”outsourcing” (esp. medtech) Advantageous to have local suppliers (esp. for SMEs) …..but often difficult to find Lack of ”critical mass” in the industry: stimulate entry of supplier firms Some policy-implications (business partners) HC organ. that is open to industry collaboration Not enough to support collaboration within the region Need to support internationalisation of SME Support of local industry should include suppliers

19. 2. Universities Almost as important as the business partners, but in a different way Science-based industry Basic technology (inventions or knowledge) Regional partners are important Creation of new firms (USOs) Cooperation opportunities for established firms Tacit knowledgeneed for proximity Natural for USOs, but important to broaden the interface The Oulo case: tight U-I networkingstrong cluster

20. 3. Other biomedical firms Relatively little collaboration between biomedical firms in the region Specialisation in different technology/product areas One exception: biomaterials and cell therapy cluster

21. Concluding remark Yes, regional collaborations matter in biomedicine – to some extent The role of regional universities Esp. for SMEs Business partners: regional collaboration is less important

22. Biomedical industry Broad definition Firms involved in development, manufacturing and/or marketing of: Pharmaceuticals Medical devices (incl. aids for disabled) ”Biotech supply” products Clinical/contract research services

23. Biomedical industry in Western Sweden More than 200 biomedical firms Six large firms:one pharma five medtech Three sub-sectors: Pharma: one giant; few others Medtech:many companies (large – small) fragmented cluster in biomaterials (+ cell therapy) ”Biotech supply”: no large companies some small companies

24. R&D and innovation activities R&D expenditures: Spend more than 10% on R&D:60% of the firms Spend more than 20% on R&D:38% of the firms (75% spend less than 10 man-years) Mainly product development95% of the firms Scientific work:60% of the firms Radical innovations:80% Incremental innovations:80% 75% run 1-3 projects

25. Biomaterials and cell therapy cluster