{"id":21981,"date":"2025-01-16T21:33:29","date_gmt":"2025-01-16T21:33:29","guid":{"rendered":"https:\/\/makingpharmaindustry.it\/?p=21981"},"modified":"2025-01-16T21:33:29","modified_gmt":"2025-01-16T21:33:29","slug":"how-to-attract-innovative-companies","status":"publish","type":"post","link":"https:\/\/makingpharmaindustry.it\/en\/business-en-2\/insights-en\/how-to-attract-innovative-companies\/","title":{"rendered":"How to attract innovative companies"},"content":{"rendered":"<p>Innovation in the life sciences requires-more than in other fields-the presence of a suitable environment, a complex ecosystem that intertwines regulations, market access and investment capacity. The <a href=\"https:\/\/www.dlapiper.com\/en\/insights\/publications\/2024\/06\/life-sciences-index-2024\" target=\"_blank\" rel=\"noopener\">Life Sciences Index 2024<\/a>, prepared by law firm DLA Piper, analyzed the elements that make a country more attractive to companies in the sector that have innovation as their main driver.<\/p>\n<p>The index is the result of <strong>a survey of 200 employees<\/strong> of leading global biotech and medtech companies, who were asked to <strong>rate (with a score from 1 to 7)<\/strong> several parameters, such as investment in research and development, regulations, market attractiveness, and talent availability.<br \/>\nThe<strong>total index for life sciences is 5.3<\/strong>, meaning that respondents believe the sector is &#8220;somewhat attractive&#8221; for stimulating innovation and growth. The report confirms that the leading global hub for biotechnology and medtech is the <strong>United States, with a score of 6.1<\/strong> and a significant lead over the nearest pursuers, which are all at about the same level: the EU and China stand at 5.3, Japan at 5.2 and Switzerland at 5.1. Further behind are the others (see chart).<\/p>\n<p><!-- Load the Highcharts scripts. Please note that the Chatbot loads all scripts because we do not know what is being used in the configuration previews. In production, unused scripts should be removed. --> <script src=\"https:\/\/code.highcharts.com\/highcharts.js\"><\/script> <script src=\"https:\/\/code.highcharts.com\/highcharts-more.js\"><\/script><\/p>\n<div id=\"container\"><\/div>\n<p>&nbsp;<\/p>\n<p><script>\nHighcharts.chart('container', {\n    chart: {\n        polar: true,\n        type: 'line'\n    },\n    title: {\n        text: 'Geographic Area Data'\n    },\n    pane: {\n        startAngle: 0,\n        endAngle: 360\n    },\n    xAxis: {\n        categories: [\n            'United States (US)',\n            'United Kingdom (UK)',\n            'Switzerland',\n            'Middle East',\n            'Japan',\n            'China',\n            'European Union (EU)',\n            'Latin America (LATAM)',\n            'Australia',\n            'Africa',\n            'Other APAC (Other Asia-Pacific Regions)'\n        ],\n        tickmarkPlacement: 'on',\n        lineWidth: 0\n    },\n    yAxis: {\n        gridLineInterpolation: 'polygon',\n        lineWidth: 0,\n        min: 0,\n        max: 7 \/\/ Adjust this value based on your data range\n    },\n    series: [{\n        name: 'Life Science 2024',\n        data: [6.1, 4.8, 5.1, 4.6, 5.2, 5.3, 5.3, 4.8, 4.8, 3.7, 5.1],\n        pointPlacement: 'on'\n    }]\n});\n<\/script><\/p>\n<h2>Key Attractiveness Factors<\/h2>\n<p><strong>But what makes one ecosystem more attractive than others?<\/strong>.<br \/>\nAccording to the report, countries that emerge as leaders can boast massive investment in research and development, favorable policies, and advanced infrastructure. Analysis of survey responses reveals <strong>some areas that are particularly critical<\/strong> for stimulating-but also hindering-innovation (see chart).<\/p>\n<div id=\"container2\"><\/div>\n<p><script src=\"https:\/\/code.highcharts.com\/highcharts.js\"><\/script><br \/>\n<script src=\"https:\/\/code.highcharts.com\/highcharts-more.js\"><\/script><\/p>\n<p><script>\nHighcharts.chart('container2', {\n    chart: {\n        type: 'bar'\n    },\n    title: {\n        text: 'Significant Drivers and Barriers'\n    },\n    xAxis: {\n        categories: [\n            'Pricing and Reimbursement Determination Processes',\n            'Economic Environment',\n            'Access Environment',\n            'Intellectual Property (IP) Environment',\n            'Business Mindset\/Culture\/Leadership',\n            'Business Development\/Activity Environment',\n            'Talent Access and Retention',\n            'Government Incentives for Science and Development',\n            'Clinical Trial Regulation',\n            'Government Tax Incentives',\n            'Supply Chain Resilience',\n            'Operational Efficiency\/Inefficiency',\n            'Geopolitics\/International Trade',\n            'Production Environment',\n            'Marketing Regulations',\n            'Data Privacy and Cybersecurity Regulations'\n        ],\n        title: {\n            text: 'Factors'\n        }\n    },\n    yAxis: {\n        min: 0,\n        title: {\n            text: 'Percentage (%)'\n        }\n    },\n    series: [{\n        name: 'Significant Driver (%)',\n        data: [51, 43, 40, 37, 37, 34, 29, 28, 26, 26, 23, 21, 19, 15, 15, 19]\n    }, {\n        name: 'Significant Barrier (%)',\n        data: [42, 22, 29, 18, 23, 17, 21, 10, 30, 10, 12, 11, 18, 5, 11, 15]\n    }]\n});\n<\/script><\/p>\n<h2>Pricing and access<\/h2>\n<p><strong>The most important element<\/strong> indicated by respondents is pricing and reimbursement arrangements. If well designed, these mechanisms can be an important incentive for innovation but in many cases they are a serious obstacle, especially when regulations are variable, confusing, or different from one country to another.<strong>In fact, 51 percent of the sample cite this factor as a significant driver of innovation but 42 percent see it as a barrier.<\/strong><br \/>\nInnovative reimbursement formulas have emerged in recent years, such as the <strong>success fee<\/strong> (payment conditional on the achievement of agreed outcomes), <strong>annual payments<\/strong> and some forms of &#8220;<strong>subscription<\/strong>&#8221; (such as the one used in some U.S. states for reimbursement of hepatitis C drugs), each with specific benefits and challenges.<br \/>\nFrom 2025, a<strong>pan-European Health Technology Assessment (HTA) process<\/strong> for cancer treatments and ATMPs (advanced therapy medicinal products) will be implemented.<\/p>\n<p>By 2030, this process will extend to all patented drugs, IVDs (in vitro diagnostics) and high-risk medical devices. Although the stated goal is to accelerate access to new treatments by reducing duplication of assessments and harmonizing assessment methods among member states, methodological details are still being worked out, and<strong>innovators fear the system may introduce new challenges rather than solving them.<\/strong><\/p>\n<h2>Access to Care<\/h2>\n<p>Associated with pricing mechanisms is another element: the environment of access to care, which is<strong>a support for innovation for 40 percent of respondents and a barrier for 29 percent.<\/strong><br \/>\nThe environment of origin is likely to weigh on these assessments. As with pricing processes, the local access environment also varies widely among markets, with varying degrees of success, particularly with regard to health equity.<\/p>\n<p>This phenomenon is particularly evident in Europe, for which respondents speak of <strong>&#8220;zip code lottery&#8221;<\/strong> as different regional health care systems can imply significant differences in waiting times, availability of treatment, and access to advanced medical technologies.<\/p>\n<h2>Protection of intellectual property<\/h2>\n<p>.<br \/>\nThis factor was cited as a <strong>driver by 37 percent of the sample<\/strong>. A system that effectively protects IP rights is essential for stimulating research, and countries with clear and enforceable patent legislation rank among the best by attracting foreign investment and promoting innovative collaborations. <strong>South Korea,<\/strong> for example, has seen increased foreign and domestic investment as a result of action on IP protection legislation and the regulatory framework.<\/p>\n<h2>Investment in research and development<\/h2>\n<p>The type of agreement with the highest priority among respondents is strategic partnerships for research and development purposes. It is not surprising, then, that<strong>26 percent of respondents consider incentives in this activity a crucial<\/strong> factor for innovation.<\/p>\n<p>The <strong>United States<\/strong>, for example, invests a significant percentage of GDP in research and development and offers easy access to talent. <strong>China<\/strong>&#8216;s role as an emerging industry leader is also solidified by the presence of three key innovation hubs in Shanghai, Suzhou and Shenzhen.<\/p>\n<p>Conversely, the gradual decline in attractiveness in the R&amp;D sector has raised several concerns in <strong>Germany<\/strong> (the fourth largest market in the world for the sector and considered the most attractive area in the European Union) to the extent that the government has launched a special revitalization plan (Strategy Paper 4.0).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>DLA Piper research investigated the factors that make countries most attractive to life science companies investing in innovation.<\/p>\n","protected":false},"author":4,"featured_media":21979,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[793],"tags":[1091],"class_list":{"0":"post-21981","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-insights-en","8":"tag-dla-piper-en"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - 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