In a recent "New York Times" article, Bill Gates revealed he has entered into a number of biotechnology related projects. Gates explained he is interested primarily in the ever-strengthening ties between biotech, and high-tech/information technologies.
This is good news for Israel’s biotechnology sector. There are probably very few other countries in the world with so many resources in this field. If biotechnology in Israel spurs on the high-tech industry, as is the case in the US, then chances are good Israel will get a respectable market share in one of the world’s fastest-growing industries. The global biotech turnover now stands at $40 billion.
Can this come true? In order to understand how Israeli biotechnology and high-tech technologies can cooperate successfully, one must understand why, by operating separately, one industry has managed very well, while the other hasn’t.
Israeli high-tech’s success is backed by an technological infrastructure, built by the defense establishment, out of a need to develop proprietary military technology and eliminate dependence on outside suppliers. Therefore, immense resources were invested in training young people to find original solutions to complex technological problems. To this day, the IDF meticulously selects brilliant people, sends them to intensive training courses and turns them into expert problem solvers.
As part of that training, they gain experience with algorithms, mechanical and communications systems engineering. It’s no wonder, therefore, that after they leave the army, these young people are able to adapt rapidly to solving technological - commercial problems. Because they’re young, without family responsibilities, they are full of energy, ready to take the risks demanded by entrepreneurship.
Many succeed in establishing start-up companies, or become creative engineers participating in the rapid growth of existing technologies. When multi-nationals like Intel, IBM and National Semiconductor discovered the abilities of these human resources, they entered the field, contributing to the continued growth of Israeli industry.
But Israel’s biotechnology field did not benefit from these advantages. Biotechnology companies hire researchers who are generally older, after they have completed both military service and 6-13 years of university. As they join the workforce at a relatively more mature age, they have families, and are less likely to expose themselves to high risk, and entrepreneurial games of chance.
The economic limitations of Israel’s health system also negatively influences the biotechnology industry. Many of the world’s best ideas for new drugs, medical diagnosis and monitoring equipment, come from medical professionals with the time to solve problems encountered in the field. In the US, young doctors often profit handsomely from a few hours of clinical work, and are therefore able to devote a good amount of time to research. By contrast, potential Israeli inventors have no opportunity to develop ideas as they must work long hours at their clinics, to earn a living.
Given this background, its not surprising that almost no multinational drug company has entered the Israeli market. This fact makes the situation worse; in the absence of large drug companies, small Israeli companies find it difficult to raise funds.
Despite all these difficulties, Israel has succeeded in creating an impressive infrastructure in the field, comprising academic institutions, such as the Weizmann Institute, and has international-scale achievements to its credit. Almost one-third of Israeli scientists have life-sciences degrees, and firms such as Interpharm and Bio-technolgy General (BTG) are profitable leaders in the field.
It’s important to note that Israel’s high-tech wunderkinder have limited knowledge in basic sciences. They can be marvelous applications and development engineers, but they are not scientists. Therefore, they are ill-equipped to manage the research and development needed in the new field of high-biotech.
Now, when biotechnology now longer operates as a separate entity, and is becoming an integral part of high-tech, Israeli entrepreneurs may take advantage of the trained manpower available to them, to compete in the world market.
Israeli entrepreneurs trained in algorithms and statistical analysis captured a leading position in the software, multimedia and Internet fields. In the same way, through cooperation with Israeli experts in the pharmacology, organic chemistry and diganosis fields, those entrepreneurs can develop inventions in new fields, including genetic medicine, recombinant chemistry and bio-information. Some Israeli companies are already operating in the field.
Dr. Yoram Karmon, Ph.D. is the president and CEO of Peptor, and the former president of Interpharm and VP at Ares-Serono