United States-New Zealand Collaboration in Technology Development

Dr Brian YoungScience & Technology Counsellor

New Zealand Embassy

Federal Laboratory ConsortiumMid Atlantic Region

2007 Annual Conference

What does New Zealand have to offer?▰ Ease of doing business (2nd on the World Bank Ease of

Doing Business index)

▰ Low corruption (1st equal with Finland and Denmark on Transparency International’s 2007 Corruption Perceptions Index)

▰ High quality innovation, – broad range of unique, niche technologies

▰ Flexible manufacturing, small production runs, opportunities for customization

▰ Ideal test-bed for new technologies▰ Primary sector strengths: world class

resources and expertise

What does New Zealand have to offer (cont.)?▰ Clean, green image▰ Immaculate animal health status▰ Cross-seasonality advantages▰ Increasing availability of private capital▰ Small market size facilitates networking

and NZ Inc approach▰ Distance not a barrier to ICT and other

high value-added exports

Where is NZ?

You arehere

NZ is here

Unique Challenges▰ Remoteness▰ Size▰ Small companies▰ Limited access to capital▰ Limited business expenditure on R&D

Not-So-Unique Challenges▰ Gulf between R&D and commercialization

processes within organizations▰ Weak linkages between research organizations

and businesses.▰ Firms’ lack of understanding of research

organizations’ capabilities and IP ▰ Many firms don’t know their SWOT ▰ Weaknesses in understanding, defining and

capturing the true value of IP. ▰ Poor public understanding of wealth creating

power of S&T

Not-So-Unique Challenges (cont.)▰ Weak sales and marketing skills ▰ Limited visionary leadership▰ Inadequate governance structures ▰ Poor strategic planning skills▰ Weak project management skills▰ Inadequate design skills▰ Innovators and investors speak different

languages▰ Life style businesses limit growth

opportunities▰ Lack of large-scale infrastructure

▰ Australian Synchrotron– Commissioned 2007– New Zealand investment in construction

and maintenance – Guaranteed access

Infrastructure Development

▰ REANNZ (Research and Education Advanced Network New Zealand Ltd)

– Partnerships with National Lambda Rail and Internet2

Entrepreneurship Development▰ NZ Foundation for Research, Science &

Technology and MIT– Workshops for NZ CEOs at MIT– MIT MBA students placed in NZ co.s

▰ UCLA Global Access Program – Matches companies and organizations around the

world with a team of five FEMBA students– NZ is a participating country– Develop an in-depth strategic business plan

▰ Global Technology Partnership program– Partnership with the Danish Technology Institute– Expert advice on technology issues– International network of 20,000 experts

Systems Integrators▰ Package products and technologies

from different sources into whole solutions for government end-users

▰ Provide NZ technology organizations with:– Market knowledge– Regulatory understanding– Scale– Capital

Partnerships with US VCs▰ NZ is a long way from the US, and…▰ Not a lot of foreign companies get

funded▰ Need US presence

– Preferably with US staff

▰ Corporate headquarters in the US▰ Research facilities in New Zealand

VC Partnership Examples▰ Proacta

– Headquartered in San Diego– Anti-cancer compounds– $35M in series B financing

▰ Protemix– Headquartered in San Diego– Compounds for treatment of metabolic disorders– $14.5M in series A financing

▰ CoDa Therapeutics– Headquartered in San Diego– Wound healing and tissue repair– $10M in series A financing

Development PartnershipsNeuren Pharmaceuticals▰ Three lead compounds: Glypromate, NNZ-2566,

NNZ-2591▰ Partnerships include:

– US Army (Walter Reed Army Institute of Research)– Pfizer– Metabolic Pharmaceuticals – University of Texas Medical Centre– Duke University

AgResearch/Scion▰ Partnered with Diversa to investigate feasibility

of a transportation biofuel industry in NZ that uses wood- and grass-derived feedstocks

Development Partnerships (cont)Industrial Research Ltd ▰ BCX-4208 for treatment of psoriasis

– Developed in partnership with Albert Einstein College of Medicine

– Outlicensed to US company BioCryst– BioCryst partnered with Roche – Phase II clinical trials

▰ HTS-110– High temperature superconductor mfg spin-out– 20% owned by American Superconductor who

provided:• CryoSaver(R) current leads business to HTS-110• non-exclusive licenses to certain coil patents

Beachheads Program▰ Coordinated by New Zealand Trade and

Enterprise (national economic development agency)

▰ Designed to accelerate the offshore growth of New Zealand companies

▰ Provides knowledge, contacts and services of specialist off-shore advisory boards

▰ Provides introductions to potential business partners, customers, key influencers and experts

▰ Primarily focused on high-tech companies

Government Partnerships▰ Science and Technology Cooperation

Agreement– First signed in 1974– For the purposes of enhancing:

• scientific and technological collaborations• exchange of scientific and technological information• sharing of facilities• exchange of scientific and technical personnel

▰ Memorandum of Cooperation between the State of Iowa and the New Zealand Government

– “to pursue and promote cooperative academic and commercial research and development efforts that may result in mutual benefit”

Summary▰ NZ has technology strengths, but…▰ Geographically- and

demographically-induced weaknesses▰ International partnerships essential

to make good on opportunities▰ Wide variety of partnership models in

use at all stages of the R&D process▰ US is predominant international

partner for technology development

Contact information:Brian YoungNew Zealand Embassy37 Observatory Circle, NWWashington, DC 20008(202) 328-4891brian.young@morst.govt.nz