Life Science - A World of Growth

LIFE SCIENCE

A WORLD OF GROWTH

L I F E S CI E N CE — A W O R L D O F G R O W T H

L I F E S CI E N CE – A W O R L D O F G R O W T H S T R AT E G Y F O R L I F E S CI E N CE I N D E N M A R K

CONTENTS Seeking greatness in small things . . . . . . . . . . . . . . . . . . . . . . 4 The potential within Danish life science Life science - in brief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

A short introduction to life science

9

The head brewer at the insulin factory. . . . . . . . . . . . . . . . . 10 The definition of a cluster A large part of something bigger. . . . . . . . . . . . . . . . . . . . . . 12 Novo Nordisk’s interaction with the rest of the cluster United. Together. Today . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 The need for a national life science strategy An even smarter Denmark . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Focus on life science programmes Invest in quality and top performers in life science programmes Strengthen the research in research programmes World-class knowledge. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Stronger branding of Denmark and Danish life science Attractive conditions for international talent More and better-qualified international life science students More Danish entrepreneurship. . . . . . . . . . . . . . . . . . . . . . . . 32 Invest in publicly funded research Strengthen growth opportunities for new businesses Focus on sub-suppliers A more attractive Denmark. . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Focus on Denmark’s unique strengths Target the R&D investments of large multinationals Strengthen incentives for R&D investment

Cover image: Yeast cells, Scanpix Eye of Science/Science Photo Library

Image: Bacterial cultures, POLFOTO

Invitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

6

L I F E S CI E N CE — A W O R L D O F G R O W T H

L I F E S CI E N CE — A W O R L D O F G R O W T H

7

SEEKING GREATNESS IN SMALL THINGS A microscope and a helicopter. You need both to see where future growth and jobs in Danish business will come from.

Image: Bacterial cultures, POLFOTO, Copyright Corbis/Flirt, Photographer Walter Hodges

The microscope allows us to see the living organisms that keep large export companies such as Novo Nordisk, Carlsberg, Novozymes and many more going. Companies that base their production on the advanced application of living material – on life science.

We need the helicopter to observe how these companies are interrelated. From this height we can see that they are not part of one industry all producing the same thing. They are united, despite their different products and markets. The companies form one single business cluster where the success of one often rubs off on the others. And they typically require the same kind of growth conditions to thrive.

The potential within Danish life science is huge. And it will require an ambitious collaborative effort to realise it. As the cluster’s largest member, Novo Nordisk gives its take on the main elements of a Danish life science strategy. And we invite politicians, the business community and the academic world to pull together, so we can put these ideas into action.

8

L I F E S CI E N CE — A W O R L D O F G R O W T H

9

L I F E S CI E N CE — A W O R L D O F G R O W T H

The Danish life science cluster S E L E C T E D CO M PA N I E S

D

U

ME

BIG ASO L BIO TRO NIK DENMARK

G E HEALTH CARE

DI

CO

BAXTER

IN

ST

RI

AL

TE

O BI

CH

CHR. HANSEN EVO LVA BIO TECH

CO L O PL AST NO VO ZYMES

CO ATZYME

MEDICAL PRO G NO SIS

AQ UAPO RIN

BIO SYNTIA

BAXTER

ASIRO S

FFS

F ERRING

S ANIONA

ASCENDIS PHARMA

IMMUNITRACK ZPD

CARL SBERG

NO VO NO RDISK

PAL SG AARD

B GI DE NM AR K

E X IQON

R OCHE INNOVAT ION

MSD DANMARK

ABBVIE

OR P HAZ Y M E

EINAR WIL L UMSEN

AL K-ABEL L Ó

E GAL E T DANM AR K

TAKEDA PHARMA NS GE NE

H. L UNDBECK

L EO PHARMA GUB R A

BIO G EN IDEC PF IZER

PHARMACO SMO S

V E L OX IS

BAVARIAN NO RDIC

PRO NO VA BIO PHAR M A

RO CHE

XEL L IA

SYNTESE

MEDICIN

E

CED FOODSTU

GE NM AB

ABBO TT

R I M E N TA L B I O T E C H

A D VA N

GAL E CT O B IOT E CH

S Y M P HOGE N

ARL A

EXPE

PHIL IPS BIO CEL

Although there is massive potential, Denmark cannot take its position of strength or a golden future within life science for granted. Why would promising new companies establish themselves here? Why would existing companies expand their business in a country where the domestic market for medicine, food and biofuels is relatively small and impacted by high operating costs?

CENTER CO PENHAG EN

ACE S ION P HAR M A

DEVICES

NO VAR TIS

The time for investment is now. Denmark needs a business policy strategy that can pave the way for some of the life science companies that we will work for and live from. The Lundbecks, Chr. Hansens and Carlsbergs of the future.

ONX E O

DANISCO DUPO NT

We should be happy about that. Because Denmark not only has large companies that have a positive impact on the cluster; we also have clever, specialised sub-suppliers as well as a fertile growth layer of life science start-ups.

Much of the answer lies in the knowledge and strong tradition of life science that Denmark has established through research, education and innovation. It’s a unique strength to build upon. We can – and should – decide that life science is something that Denmark will focus on even more.

INS T IT UT E

TERRANO L

Life science is already one of the clusters in Danish business that creates most economic value for society. Lots of highly productive jobs, export revenues, tax payments etc., which will hopefully increase in the coming years.

Z E AL AND P HAR M A

IMMUDEX DENMARK

L AL L EMAND DENMARK

TOMORROW’S JOBS

NE UR DAN

RADIO METER

G LTCO M

THE POTENTIAL WITHIN LIFE SCIENCE

Image: GLP-1, protein, Novo Nordisk

F ERRO SAN MEDICAL

Note The illustration shows examples of life science companies in Denmark broken down by industry, but is not comprehensive. Based on three category sizes.

Source Novo Nordisk and annual reports.

10

Living research

Systems biology Systems biology researches complex relations in living organisms. It provides an understanding of systemic relationships, which could be used in the biotechnical production of e.g. sustainable energy, vital medicine or better foodstuffs.

11

L I F E S CI E N CE — A W O R L D O F G R O W T H

Image: Wheat, POLFOTO, Copyright Johner, Photographer Johnér Images

L I F E S CI E N CE — A W O R L D O F G R O W T H

LIFE SCIENCE – IN BRIEF

WHERE THERE’S LIFE… • Life science is the science of living things – from microorganisms to plants, animals and humans.

• With biology as its primary discipline, life science is quickly branching out into new and related areas such as health and natural sciences as well as technical sciences.

• Life science has also become synonomous with manufacturing companies that are researched based and work directly with, or based on biological material.

Protein Proteins are key building blocks and perform vital functions in all living organisms. Protein technology is currently used to produce medicines, such as insulin. There are other possibilities e.g., detergent that can get clothes clean at lower temperatures, and bread that stays fresh longer. Enzymes can cut food health risks and reduce pollution by reversing photosynthesis.

Yeast Yeast is a microorganism – a unicellular organism that can multiply independently through cell division. Yeast is essential for fermentation, which is used in the industrial production of products such as beer, enzymes and medicine.

• When it comes to the possibilities of life science, we’ve only scratched the surface. New technologies, advanced bioinformatics and deeper knowledge about genes can open new doors to health, sustainability and food supply – in Denmark and the rest of the world.

L I F E S CI E N CE — A W O R L D O F G R O W T H

THE HEAD BREWER AT THE INSULIN FACTORY BEER AND INSULIN There’s not a lot of beer drinking going on at Novo Nordisk – and certainly not during work hours. But it’s not unusual to see a former head brewer at one of our production facilities. Although the products are quite different, it’s the same technology – fermentation – that is used in the production of beer and insulin.

A DYNAMIC GROUP OF COMPANIES

It’s this type of relationship and interaction between what appear to be very different companies that help to define life science as a cohesive cluster. The same goes for the widespread interaction and collaboration across traditional industry sectors and across the boundaries between large, firmly rooted companies and the undergrowth of emerging start-ups.

The life science cluster is difficult to fence in.

Almost all pharma and biotech companies automatically belong to it, and so do companies in the food and industrial biotech industries. Life science is a dynamic term for companies that work directly or indirectly with living organisms, carry out their own research, and develop or manufacture their own products. This ‘loose’ term means that there are not always accurate figures for the entire cluster, or statistics that can be compared with other countries.

A cluster starts to form when the synergies between the companies become sufficiently strong and many. When they exchange employees. Make each other smarter. Draw on related research and a common core of fundamental technologies. And, to a large extent, have the same growth conditions.

But what we do know is that life science has an abundance of untapped potential – as a field of research and as an area of business.

In a time when all territories have been mapped, the groundbreaking discoveries are being

13

L I F E S CI E N CE — A W O R L D O F G R O W T H

made through the eye of a microscope.

And Denmark is exceptionally good at this.

If we create the right conditions for developing and utilising our knowledge and talent, we can place Denmark at the very forefront of life science.

We would be competing with Great Britain, which today boasts the strongest life science cluster in Europe. This is down to excellent research and a number of market-leading companies. It’s also explained by the fact that the British government already in 2011 took the cluster’s potential very seriously, launching the ‘Strategy for UK Life Sciences’.

Sweden is also working on a life science strategy. And Denmark should do the same.

AN ECOSYSTEM THAT GOES BEYOND BUSINESS Life science in Denmark is an ecosystem.

A cluster of large and new companies – often specialised, research-based and technical – that develop best in close collaboration with other parts of the ecosystem.

It also includes universities, other educational institutions and strong academic research environments. The public health service and the innovation system also help drive cluster development in an ecosystem where growth is based on mutual interdependence.

Image: Yeast cells, Scanpix

12

A cluster starts to form when the synergies between the companies become sufficiently strong and many.

14

L I F E S CI E N CE — A W O R L D O F G R O W T H

A LARGE PART OF SOMETHING BIGGER 17,000 22,000 5,000 employees in Denmark.

employees by 2022.

new jobs over the next six years.

In 2015, Novo Nordisk created 1,240 new jobs in Denmark.

That’s almost 5% of jobs in the private sector. The figure for downstream employment is almost 3,000 new jobs in Denmark. Novo Nordisk is directly or indirectly responsible for every 6th new job created in the private sector.

That equates to 12 new jobs in Denmark every day.

A PROUD BIG BROTHER

×3

Every hour, Novo Nordisk creates three times as much value compared to the average in Danish industry.

100 bn In 2015, Novo Nordisk’s turnover increased to over DKK 100 billion. Less than 1% of Novo Nordisk’s turnover is generated in Denmark.

Novo Nordisk is the largest contributor of corporation tax in Denmark. Novo Nordisk paid around DKK 5 billion in corporation tax, which equates to 10% of all corporation tax in Denmark. Novo Nordisk’s employees paid more than DKK 4 billion in income tax.

Novo Nordisk is not only the largest company in the life science cluster; it is the most valuable Danish company by share price.

We are proud of what we have achieved and the contribution we make – directly and indirectly – to Danish society. But we are also very aware that these results are largely due to the interaction with highly competent sub-suppliers, the cooperation with Danish universities, and the many talented people who have been nurtured by Danish educational institutions.

15

L I F E S CI E N CE — A W O R L D O F G R O W T H

10.6 bn In 2015, Novo Nordisk spent DKK 10.6 billion with Danish sub-suppliers.

In 2015, Novo Nordisk exports reached a total value of DKK 42.5 billion. Novo Nordisk and the other pharmaceutical companies exported to the value of about DKK 85 billion in 2015. This accounts for 12.6% of Danish exports.

Exports have more than doubled since 2007.

Source Novo Nordisk and LIF.

16

L I F E S CI E N CE — A W O R L D O F G R O W T H

Novo Nordisk is half a cluster

Need for new job growth across the cluster Novo Nordisk is not an island, but part of a comprehensive ecosystem of knowledge within life science. Novo Nordisk is, and can continue to be, a locomotive for Danish life science. But we have never, and will not in the future, be able to drive these positive developments alone. The entire cluster needs to get up to speed so we can achieve full joint value creation.

T H E L A R G E S T L I F E S CI E N CE CO M PA N I E S I N R E L AT I O N T O T H E I R D O M E S T I C CL U S T E R

Denmark

T H E CL U S T E R NOVO NORDISK

47%

GSK N O VA R T I S

Great Britain Switzerland

13%

17

L I F E S CI E N CE — A W O R L D O F G R O W T H

23%

Today, Novo Nordisk employees make up almost half of the Danish life science cluster.

That’s more than twice as much as the largest company’s share within the life science cluster in countries like Britain or Switzerland.

E M P L OY M E N T T R E N D S 2 0 0 8 -2 016

NOVO NORDISK T H E R E S T O F T H E CL U S T E R

NUMBER OF E M P L OY E E S

25 , 0 0 0

20,0 0 0

15 , 0 0 0

47%

A NEED TO GROW TOGETHER During the last 10 years, Novo Nordisk has delivered most of the growth within Danish life science. This has helped Novo Nordisk establish itself as a powerful driving force for the whole cluster. Having one company contributing this much is not necessarily a problem; it can be used as a lever for the entire life science cluster. And Danish life science has both the collective potential and the necessary agents to release it: a powerful engine, a number of strong global companies, a teeming undergrowth of start-ups – and a wide range of specialised and highly competent sub-suppliers.

Note 1 Calculated in 2015 or most recent year, but not before 2011. Calculated by employment.

Note 2 If Roche’s 13,000 employees in Switzerland are pooled together with Novartis’ 15,000, the two companies combined have 28,000 employees, or 42% of the country’s life science jobs – which is still less than Novo Nordisk’s share of life science jobs in Denmark.

Source Novo Nordisk, Novartis, Roche, GSK and clusterobservatory.eu

Denmark’s highest productivity T H E I N D U S T R I A L S E C T O R S’ A D D E D VA L U E A N D S H A R E O F E M P L OY M E N T

A D D E D VA L U E P E R F U L L-T I M E E Q U I VA L E N T ( F T E ), D K K 1, 0 0 0

As a whole, growth in the rest of the cluster has stagnated since the financial crisis.

However, there are numerous signs of a new upturn. New ideas, more start-ups, promising research results and more investment. It is precisely conditions such as these that call for a comprehensive approach to the area.

2, 5 0 0 Pharmaceutical industry

2, 0 0 0 Chemical industry

1, 5 0 0

1, 0 0 0

Machinery/ transpor t

Furniture/other

Metal/ Plastic / Food and Wood / beverages paper/ electronics glass/ concrete textiles

500 % OF E M P L OY E D I N THE I N DUSTRY

0 0

10

20

30

40

50

Note Data for 2014.

Source Copenhagen Economics and Statistics Denmark.

60

70

80

90

10 0

36% 0

YEAR 20 0 8

20 09

2 010

2 011

2 012

2 013

2 014

2 015

2 016

Note The percentages in the graph show Novo Nordisk’s share of the cluster’s employment.

Source Copenhagen Economics and Statistics Denmark (RAS300), annual reports from Danish life science companies, proff.dk, European Cluster Observatory and Novo Nordisk.

A HEALTHY BUSINESS Denmark needs a large and flourishing life science cluster with even more talented people and growth in new innovative companies, so that Novo Nordisk and the cluster can grow together – and not at the expense of each other.

It is highly productive clusters such as life science that really create value. In 2012, a Novo Nordisk employee created more than three times as much value per work hour compared to an employee within Danish industry as a whole.

That’s why it is in Denmark’s best interests to have as many people as possible employed in highly productive companies within areas such as life science. This not only ensures

that employees get a better salary; society also gets far more economic value from every job.

It’s a challenge for the whole of Danish society if these kinds of companies lack the necessary employees. As a society, we lose out on the extraordinary high value that employees in highly productive life science companies create. Therefore, it really pays off to strengthen job growth in this area – for example by making a special effort to train more talented people for future life science jobs. Put simply, targeted investments in life science make good business sense for the Danish economy.

18

L I F E S CI E N CE — A W O R L D O F G R O W T H

UNITED. TOGETHER.

19

L I F E S CI E N CE — A W O R L D O F G R O W T H

Preparing and implementing a comprehensive strategy for Danish life science is a joint challenge that is urgently needed.

The strategy needs to be a united one.

A few sporadic efforts are not enough to give the whole cluster the boost that it needs. To truly deliver results, we must be prepared to make a concerted effort, putting into effect all the initiatives we know will have an impact.

A national strategy is something we should do together. It should be a collaboration between politicians, companies, universities and other players within life science.

This will ensure that the strategy adopts a holistic approach towards the cluster and creates synergies.

The time for this strategy is … today. Firstly, so we can ride the tailwind that Danish life science is currently enjoying. Secondly, because it takes time before improvements in cluster growth conditions can be fully realised. Ideally, we should have acted sooner.

But we can still make it.

Image: Birmingham UK, Copyright: George Clerk, iStock by Getty Images

Basically, there are two challenges that a Danish life science strategy must address: • How do we get more life science talent onboard?

• How can we secure more life science companies with growth potential?

In terms of talent and companies, there are two approaches: We can create them ourselves or attract them from abroad. It goes without saying that we need to focus on both.

TODAY.

Novo Nordisk is therefore proposing a strategy with four cornerstones, each with three focus areas. This 12-point strategy is set out in a chart on the next page.

20

L I F E S CI E N CE — A W O R L D O F G R O W T H

21

L I F E S CI E N CE — A W O R L D O F G R O W T H

STRATEGY FOR A WORLD OF GROWTH M o r e Danis h v entrepreneurship A n even s mar ter Den mark

Wo rld - c la s s knowled ge 01

FOCUS ON LIFE SCIENCE PROGRAMMES

02

INVEST IN QUALITY AND TOP PERFORMERS IN LIFE SCIENCE PROGRAMMES

03

STRENGTHEN THE RESEARCH IN RESEARCH PROGRAMMES

04

STRONGER BRANDING OF DENMARK AND DANISH LIFE SCIENCE

05

ATTRACTIVE CONDITIONS FOR INTERNATIONAL TALENT

06

MORE AND BETTERQUALIFIED INTERNATIONAL LIFE SCIENCE STUDENTS

07

INVEST IN PUBLICLY FUNDED RESEARCH

08

STRENGTHEN GROWTH OPPORTUNITIES FOR NEW BUSINESSES

09

FOCUS ON SUB-SUPPLIERS

A m o re at t rac tive Den mark

10

FOCUS ON DENMARK’S UNIQUE STRENGTHS

11

TARGET THE R&D INVESTMENTS OF LARGE MULTINATIONALS

12

STRENGTHEN INCENTIVES FOR R&D INVESTMENT

22

AN EVEN SMARTER DENMARK

AN EVEN SMARTER DENMARK

23

AN EVEN SMARTER DENMARK 01

FOCUS ON LIFE SCIENCE PROGRAMMES

02

INVEST IN QUALITY AND TOP PERFORMERS IN LIFE SCIENCE PROGRAMMES

03

STRENGTHEN THE RESEARCH IN RESEARCH PROGRAMMES

It’s crucial for life science companies to recruit qualified and typically highly educated employees. Without this continuous supply of fresh ideas, specialised knowledge and practical skills, the cluster cannot realise its full growth potential.

And this is not conjecture. Companies are already finding it difficult to grow in certain areas due to a lack of people with the right skills.

SIGNE SUN GUTS AND CHARLOTTE NIDLØSE AAGERUP Novo Nordisk Global Research

As part of an overall strategy for life sciences, we need to make sure that more people with the necessary skills are trained.

24

AN EVEN SMARTER DENMARK

01

Low unemployment in life science G R O W T H I N C A N D I DAT E S A N D U N E M P L OY M E N T 2 0 07-2 014

25

AN EVEN SMARTER DENMARK

Good, high-paying jobs L E V E L O F E D U C AT I O N A N D S A L A R Y I N T H E I N D U S T R Y

R E CO M M E N DAT I O N

FOCUS ON LIFE SCIENCE PROGRAMMES

A N N U A L S A L A R Y CO S T S ( D K K M I O . P E R E M P L OY E E )

0 .7

The number of students in higher education has considerably increased in recent years. But, from a life science point of view, the distribution of them is rather skewed in relation to job market needs.

% 40

30

28.8%

Compared to young British people, for example, there are far fewer young Danish people who think about job opportunities when choosing their education*. Better information about actual job prospects after completion of studies could change this. Of the large amount of new students, only a limited number apply for life science programmes. This is despite the fact that life science graduates have an average unemployment rate that is 28% lower than other graduates (2007-2014). Life sciences is even known for having good, high-paying jobs. In the pharmaceutical industry, for example, employees have by far the highest qualifications and wage levels compared to other industries.

Medical

0.6

Chemistry

Electronics

20

19.5%

10

33%

4.6%

0

S CI / T E CH / H E A LT H

S CI / T E CH / H E A LT H

ALL OTHER UNIVERSIT Y E D U C AT I O N

ALL OTHER UNIVERSIT Y E D U C AT I O N

AV E R AG E U N E M P L OYMENT AMONG UNIVERSITY G R A D U AT E S 2 0 0 7- 2 0 14

There is a need to adapt higher education admissions so that they better reflect the future job market. We know that the public sector won’t be taking in an increasing number of academics in the coming years – not when the life science cluster and private companies in other industries are crying out for highly educated employees.

A life science strategy gives us a good opportunity to ask whether we have the right range of programmes and how tasks and responsibilities should be divided up between providers. As a whole, the education sector must meet the regional demand in ‘production Denmark’ as well as the highly specialised needs of the capital’s research units. They also have to ensure that a sufficient amount of skilled professionals are educated, such as laboratory technicians and economists.

Machines

0.5

Paper

Plastics and rubber

Glass/concrete

Furniture and other

Metal

Food / beverages / tobacco

0.4 Wood

Printing

Te x t i l e a n d l e a t h e r

PUBLIC SPENDING O N E D U C AT I O N P E R E M P L OY E E ( D K K M I O .)

GROW TH IN NUMBER OF M A S T E R S G R A D U AT E S 2 0 0 7- 2 0 14

0.3 0 .1

Note Growth reflects graduate students 2007-2014.

Source Copenhagen Economics and Statistics Denmark.

Electrical equipment

*DEA, Motivation and Intensity of Study Among University Students, 2013.

0.2

0.3

0.4

0.5

0.6

Note The education costs consist of taximeter payments and student grant transfers. The cost reflects the ‘new price’ for the average employee in each industry with today’s education expenses for recent graduates (training not included).

Source Copenhagen Economics and Statistics Denmark.

26

AN EVEN SMARTER DENMARK

02

Room for improvement Q U A L I T Y I N D I C AT O R S AT T H E U N I V E R S I T I E S

R E CO M M E N DAT I O N

27

AN EVEN SMARTER DENMARK

03

R E CO M M E N DAT I O N

Too little time for research A M O U N T O F R E S E A R CH I N A P H D P R O G R A M M E

13% of university students talked very frequently, or frequently to their lecturer about professional ideas or themes out of class in the last academic year.

48% of lecturers think the vast majority, or most of their students are performing to the best of their abilities.

OT HER ACT I V I T I ES R E S E A R CH P R O J E C T

DENMARK 2 years: Reseach project + 1 year: Other activities = 3-year PhD

29% of university students received a lot, or some feedback on assignments, completed projects and/or exams in the last academic year. *

13% of university lecturers believe that the quality of their teaching has a great or some influence on promotion.

UNIVERSITY OF CAMBRIDGE AND KAROLINSKA INSTITUTET 3.5 years: Reseach project + 0.5 years: Other activities = 4-year PhD Source Committee for Quality and Relevance in Higher Education. *In addition to grading.

INVEST IN QUALITY AND TOP PERFORMERS IN LIFE SCIENCE PROGRAMMES The ambition to increase the number of life science students requires that the life science programmes are of a sufficiently high standard.

Unfortunately, evidence shows that the increase in admissions is having a negative impact on, for example, the amount of feedback that students receive on their work.

We need to dedicate more resources to increase the quality of our life science programmes. The cluster will most certainly need more people with a high quality Master’s degree. So it’s vital that a life science strategy helps to strengthen the education of a sufficient number of talented academics to match the increasing needs of life science companies.

At the same time, we must make a real effort to create unique opportunities for our most talented students. This could be via elite education, talent programmes, special international courses or additional opportunities to link up with research projects.

This means that quantity should not be the only criterion for success.

Making it more difficult for students to take advantage of additional opportunities, e.g. having to find funding to try out a research project, sends completely the wrong signal. Limiting a student’s ability to study abroad, do an internship, or put their entrepreneurial spirit to the test, is not the road to growth.

STRENGTHEN THE RESEARCH IN RESEARCH PROGRAMMES

Note The graph shows the typical distribution between research and other activities. The ratio can vary in individual PhD programmes.

Source Novo Nordisk and Damvad.

Life science is based on research. That’s why we should nurture the most talented minds among young researchers too. The Danish PhD education needs a quality check with special emphasis on two main points: Firstly, the research element of our PhD programmes must be strengthened. Today, PhD students in Denmark spend less time on research than PhD students in several of the countries that Danish life science competes against. For example, they have at least one year less for research compared to PhD students from the University of Cambridge or Karolinska Institutet. More research requires additional resources. So the principle of quality verses quantity is just as relevant here too.

Secondly, an elite PhD school in the field of life science should be established, which draws on the strongest research environments across all universities. The PhD school must be a global leader and develop Danish research talents to the highest level.

28

W O R L D - CL A S S K N O W L E D G E

W O R L D - CL A S S K N O W L E D G E

29

WORLD -CLASS KNOWLEDGE 04

STRONGER BRANDING OF DENMARK AND DANISH LIFE SCIENCE

05

ATTRACTIVE CONDITIONS FOR INTERNATIONAL TALENT

06

MORE AND BETTERQUALIFIED INTERNATIONAL LIFE SCIENCE STUDENTS

No matter how many more life science talents Denmark manages to produce, the cluster will still need to attract clever employees from abroad. The battle for top talent is vital in global competition. And, of course, not all of them are in Denmark.

Image: DNA, Shutterstock, Jezper

At Novo Nordisk, for example, the share of international employees in research and development is about 10%, and many more are needed. According to new analysis from the Novo Nordisk Foundation, international employees contribute great value to society*.

Unfortunately, there is much cause for concern about Denmark’s current situation.

There are three areas in particular where we can and should increase efforts to make Danish life science more attractive to international talent. *Novo Nordisk Foundation, Socio-economic Impact Analysis of the Financing of Publicly Funded Research, 2016.

30

W O R L D - CL A S S K N O W L E D G E

04

A well-kept secret I N T E R N AT I O N A L TA L E N T S’ K N O W L E D G E O F DA N I S H L I F E S CI E N CE

31

W O R L D - CL A S S K N O W L E D G E

WHERE DO INTERNATIONAL LIFE SCIENCE EMPLOYEES WANT TO WORK?

What attracts talent?

FA C T O R S T H AT I N T E R N AT I O N A L TA L E N T F I N D M O S T I M P O R TA N T

R E CO M M E N DAT I O N I H AV E A S O L I D O R FA I R K N O W L E D G E O F DA N I S H L I F E S CI E N CE I H AV E L I M I T E D O R N O K N O W L E D G E O F DA N I S H L I F E S CI E N CE

1.

2.

3.

4.

5.

6.

7.

8.

12% J O B - R E L AT E D FA C T O R S

8 8%

O T H E R FA C T O R S

Source The survey was conducted for Novo Nordisk by TNS Gallup, 2016.

%

70

U SA SW I TZERL A N D G REAT BRI TA I N G ERM A N Y SW ED EN N ETH ERL A N D S D EN M A RK F RA N C E

72%

69%

60

50

49%

Source The survey was conducted for Novo Nordisk by TNS Gallup, 2016.

40

39%

39%

31%

30

There’s a clear need for a targeted collaborative effort to help brand Denmark as a hotspot for life science talents. This cooperation should include companies in the cluster as well as actors in the public sector such as Invest in Denmark, Copenhagen Capacity and Greater Copenhagen.

Ambitious initiatives of this kind are already underway in other countries and regions such as Scotland, Stockholm, Amsterdam and Hamburg. In Denmark and Copenhagen, we are a step behind – also when it comes to the digital branding of the country, culture and business opportunities. * The survey was conducted for Novo Nordisk by TNS Gallup (2016) with 878 respondents taking part, all of whom have relevant life science backgrounds. from the USA, Great Britain, France, Sweden, the Netherlands, and Germany.

39%

29%

28%

27%

20

10 QUALIT Y OF LIFE IN THE CO U N T R Y

S A L A R Y, TA X AND BENEFITS

CAREER OPPORTUNITIES

WORK LIFE B A L A N CE

OPTIONS FOR SPOUSES

L A N G U AG E J O B S E CU R I T Y/ CH I L D R E N ’ S SPOKEN IN U N E M P L OY M E N T E D U C AT I O N T H E CO U N T R Y

P R E CE P T I O N O F FOREIGNERS IN T H E CO U N T R Y

R E S E A R CH ENVIRON MENT

Note The proportion of international talent who have the relevant factor in their top 5.

Source The survey was conducted for Novo Nordisk by TNS Gallup, 2016.

32

W O R L D - CL A S S K N O W L E D G E

AT T R AC TIV E CON DITION S FO R INT E R N ATIO N A L TA L E NT

05

R E CO M M E N DAT I O N

It’s necessary, but not enough, to just tell people about the existing conditions for coming to Denmark to work within life science. What we have to offer must be attractive to international talent too. We know – from Novo Nordisk’s own international staff – that there are two points that are particularly important: tax and the way we as a society welcome newcomers.

For many foreigners, one of the barriers is the Danish language. However, it doesn’t have to be an insurmountable problem if we make sure that:

70% of international talent highlight salary and tax as essential criteria that determine where they prefer to work*. For high earners – as specialists often are – Denmark has a higher marginal tax rate than Switzerland, Germany and Great Britain. Surpassed only

by Sweden. Over half of the international employees that currently work at Novo Nordisk cite tax as a barrier to staying in Denmark.

•

In Denmark, the tax scheme for foreign researchers has been essential in attracting and retaining a highly skilled international workforce. In Novo Nordisk alone, the number of employees on the scheme has increased by almost 50% in the last two years.

But half of those who use the tax scheme for foreign researchers will move on when it runs out (or the following year).

* Novo Nordisk and TNS Gallup, 2016.

Therefore, the tax scheme for foreign researchers needs to be improved. For example, the system could be made more flexible by extending it to 8-10 years.

Salary and taxes are important. But that’s not the whole story. To be an attractive country for international talent we also need to send a clear signal that they are welcome here. This includes removing unnecessary bureaucracy and other barriers in communicating with the Danish public services – or the companies themselves.

• •

33

W O R L D - CL A S S K N O W L E D G E

06

R E CO M M E N DAT I O N

MORE AND BETTERQUALIFIED INTERNATIONAL LIFE SCIENCE STUDENTS Many countries have discovered that attracting international students is a shortcut to recruiting a highly skilled international workforce. When students have become used to Denmark and have established a social and professional network, they are more likely to continue their research or working career here. A survey* across universities shows that nearly four out of ten international students who embark on higher education in Denmark, actually want to stay here afterwards. When it comes to attracting international students, Denmark’s track record is reasonable – in the mid-range among OECD countries.**

public information is always available in English. there are good opportunities to follow primary and higher education programmes in English. we get better at telling the world that Danes in general speak very good English.

But, from a life science point of view, the overall academic profile of international students is not optimal. Only 27% study a relevant life

We also know that settling in a new country depends greatly on your family being happy there too. Therefore, the public sector and the companies themselves need to do more to create jobs for spouses as well as more places at international schools.

162

10.3 YEARS

A taxing fact N O V O N O R D I S K A N D T H E TA X S CH E M E F O R F O R E I G N R E S E A R CH E R S

110 49%

51%

5.6

Two years ago, Novo Nordisk had 110 employees on the the tax scheme for foreign researchers. That figure has increased by 47% to 162.

YEARS

49% of employees in the tax scheme for foreign researchers stay on at Novo Nordisk after the scheme expires, while 51% move on soon after.

Source Novo Nordisk.

10.3 years – that’s the average length of time that Danish employees are employed by Novo Nordisk. International employees leave the company after 5.6 years.

JOHAN F. PAULSSON Novo Nordisk Global Research

* DEA Think Tank, Cost Benefit Analysis of International Students. ** Ministry of Higher Education and Science, 2015.

science subject – and the majority of those study technical science. Twice as many (54%) study humanities or theology subjects.

There is a need for a concerted effort to attract talented international life science students to Denmark.

34

M O R E DA N I S H E N T R E P R E N E U R S H I P

M O R E DA N I S H E N T R E P R E N E U R S H I P

35

MORE DANISH ENTREPRENEURSHIP 07

INVEST IN PUBLICLY FUNDED RESEARCH

08

STRENGTHEN GROWTH OPPORTUNITIES FOR NEW BUSINESSES

09

FOCUS ON SUB-SUPPLIERS

Life science thrives on innovation to an extremely high degree. It is a field in such rapid development that the ability to continuously develop, utilise and combine new knowledge and technology to create new ideas is essential to a company’s survival.

Image: Folkert Gorter

The power of innovation in the cluster depends on dynamic exchange – not just internally within each individual member, but across the entire ecosystem as well. Momentum builds up in the innovation machine when there is an increase in cluster members, and the interaction between research environments, spin-outs, other entrepreneurs as well as larger, more established companies gets stronger.

A comprehensive life science strategy will help to drive this process forward. We must focus on three areas in particular where a stronger effort could increase the number of life science companies and allow them to grow and create more jobs in Denmark.

36

M O R E DA N I S H E N T R E P R E N E U R S H I P

07

Fewer public research funds G O V E R N M E N T F U N D I N G F O R R E S E A R CH

R E CO M M E N DAT I O N

GOVERNMENT FUNDING

DKK BN.

25

20

15

37

M O R E DA N I S H E N T R E P R E N E U R S H I P

Public research was cut by DKK 1.4 billion. Reducing investment in public research is a dangerous route to take, because private investors in research follow the government’s commitment to public research very closely.

10

5

YEAR 2 016

2 015

2 014

2 013

2 012

2 011

2 010

20 09

20 0 8

2 0 07

20 0 6

20 05

20 0 4

20 03

0

Note The Ministry of Finance’s Employment Cost Index (ECI) was used when calculating the 2015 costs.

Source Statistics Denmark.

INVEST IN PUBLICLY FUNDED RESEARCH Public research is a major source of innovation in life science – and not just for small start-ups. Novo Nordisk’s major product innovations emerge from public research at universities too. Therefore, Denmark should not reduce, but increase public research in life science. Also because public research is needed in order to develop future talent.

A suitable target would be to invest 1.5% of GDP in public research and innovation. In 2014, the level was at 1.15%, of which an unknown proportion went to education. This level is expected to decrease due to the 2016 Budget, where public research was cut by DKK 1.4 billion.

Reducing investment in public research is a dangerous route to take, because private investors in research follow the government’s commitment to public research very closely*.

Too few spin-out companies in Denmark CO M PA R I S O N O F S P I N - O U T I M PA C T F R O M P U B L I C I N V E S T M E N T I N R E S E A R CH

S P I N - O U T CO M PA N I E S P E R P U B L I C R E S E A R CH D K K CO M PA R E D T O D E N M A R K

Württemberg in Germany, eastern Sweden or southern Austria all invest over 3.5% of their respective regions’ GDP in research and development.

The Danish Globalisation Strategy (2006) has contributed significantly to increasing Denmark’s level of know-how. It is crucial to the growth of life science and other research-based business that public research is maintained at a sufficiently ambitious level.

When it comes to private research investment, the life science cluster itself helps to raise the level significantly. Novo Nordisk’s share alone represents 27% of total private sector research in Denmark***.

5

X4.3 4

3

2

1

X1.9 X1.0

0 DENMARK

In 2014, the public and private investment in research and innovation in Denmark was at a total of 3.0%. Compared to the knowledge-intensive regions with which we compete globally, Denmark is in the lower third**. Strong European life science regions such as Baden-

X4.6

Novo Nordisk Foundation, Socio-economic Impact Analysis of the Financing of Public Research Funding, 2016. ** DI (Confederation of Danish Industry): Analysis: Regional Research Intensity, 2016. *** Ministry of Higher Education and Science, Research Barometer, 2015.

USA

G R E AT B R I TA I N

SWIT ZERL AND

*

Note The graph illustrates that if each DKK spent on public research in Denmark in 2011 had given rise to as many spin-out companies as in the other three countries, Denmark would have many more new spin-out companies.

Source Ministry of Education, Research Barometer, 2013. Statistics Denmark and OECD.

38

A CCE S S T O C A P I TA L F O R N E W L I F E S CI E N CE CO M PA N I E S

Early financing Early public financing is crucial for small businesses. The innovation incubators have an annual government grant of DKK 200 million to advise and invest in new projects. It is intended as venture capital, but the incubators typically invest in smaller investment- and development-intensive areas where the road to market is shorter.

Public growth capital Later-stage capital supports life science to a limited extent. For example, public funding bodies, such as Danish Growth Fund and Dansk Vækstkapital invest more in e.g. IT and communications technology (ICT).

R E CO M M E N DAT I O N

Denmark needs a new innovation policy with a sharper focus on turning more startups into growth companies. That’s where the public innovation system can play a crucial role. Today, however, new businesses experience too many bumps along the innovation road from research results to full private funding. While the potential profits of investing in a highly productive cluster are large, it’s also risky and capital intensive to develop these kinds of knowledge-based companies into commercial successes.

There is a need for more knowledge and a new approach to early-stage capital for life science companies. Is there enough capital?

Is the system for transferring capital properly organised? Are we supporting the companies’ natural development?

It’s only when companies reach the private venture capital stage that life science receives significant attention. Venture capital investment is still relatively small in Denmark compared to many of the countries we compete against.

Therefore, we need to give the public innovation system a full inspection to ensure new and promising life science companies have access to the advice and financing they need.

Not enough public growth capital

L I F E S CI E N CE

D I S T R I B U T I O N O F V E N T U R E C A P I TA L B Y S E C T O R

CL E A N T E CH

IT & COMMUNICATIONS T E CH H N O L O G Y

OTHER SECTOR S % 10 0

6% 30%

13%

80

4% 61%

43% 60

58%

40

32% 20

23%

0 O V E R A L L V E N T U R E C A P I TA L

DA N I S H G R O W T H F U N D

DA N S K VÆ K S T K A P I TA L

Note Data for Dansk Vækstkapital is based on the book value of the portfolio of funds.

Source EVCA (now Invest Europe) Yearbook 2013, www.vf.dk, Dansk Vækstkapital annual report 2012.

Image: Cancer cells, POLFOTO, Copyright: Nima Stock, Photographer Nima Stock

Unlabelled innovation funds Innovation Fund Denmark’s unlabelled funds for life sciences should be increased for applicants.

08

STRENGTHEN GROWTH OPPORTUNITIES FOR NEW BUSINESSES

Many bumps on the investment road

Proof of concept An important step for new life science companies is to be able to show that research results have the potential for commercialisation. Therefore, Denmark should re-establish a ‘proof of concept’ programme.

M O R E DA N I S H E N T R E P R E N E U R S H I P

M O R E DA N I S H E N T R E P R E N E U R S H I P

39

40

M O R E DA N I S H E N T R E P R E N E U R S H I P

09

FOCUS ON SUB-SUPPLIERS

41

M O R E DA N I S H E N T R E P R E N E U R S H I P

The sub-supplier effect G R O W T H I N K E Y F I G U R E S F O R N O V O N O R D I S K’ S S U B -S U P P L I E R S 2 0 0 0 -2 013

R E CO M M E N DAT I O N

Danish life science has in its many specialised sub-suppliers an important but often overlooked or underestimated group of companies that strengthen the interaction within the cluster and create a lot of value. There should be no contradiction between prioritising large and small businesses – not even in a Danish life science strategy.

A strategy such as this should aim to support the whole cluster – including its sub-suppliers. Because when a large company grows in the cluster, it has an immediate impact on the group of smaller sub-suppliers. For these small businesses, a large and demanding customer is by far the most powerful engine for growth as well as innovation.

Calculations show that Novo Nordisk’s sub-suppliers fared significantly better than a control group of life science companies. For example, their turnover increased by 228% during 2000-13 while the rest of the cluster grew by only 24%. When it comes to additional indicators such as exports, profit and job creation, the performance of the sub-suppliers is also significantly better. During the financial crisis in the years after 2008, their revenues grew significantly while the control group’s revenues stagnated.

The life science strategy should incorporate how the impact of this interaction can be utilised to boost growth and job creation amongst the sub-suppliers – including how the public sector as a major customer best can promote innovation among its suppliers in the life science cluster.

In 2015, Novo Nordisk spent more than DKK 10.6 billion in other Danish companies. From production equipment, office supplies and furniture to research – corporate purchases spread far and wide.

Even though some of our sub-suppliers undoubtedly have international partners and suppliers – our purchases still represent a significant growth engine for the many talented Danish companies that provide products, services and know-how to Danish life science.

TURNOVER EXPORT E A R N I N G S B E F O R E TA X E S

N O V O N O R D I S K’ S S U B -S U P P L I E R S

F U L L-T I M E E M P L OY E E S ( F T E S )

CO N T R O L G R O U P O F L I F E S CI E N CE CO M PA N I E S

% 25 0

228%

From DKK 25 to 84 mio.

205%

20 0

F r o m D K K 1. 5 to 4.5 mio.

15 0

Sub-suppliers bypassed the financial crisis

10 0

AV E R AG E R E V E N U E P E R B U S I N E S S

88%

From DDK 8 t o 14 m i o .

DKK M I O. 10 0

N O V O N O R D I S K’ S S U B -S U P P L I E R S

50

37%

CO N T R O L G R O U P O F L I F E S CI E N CE CO M PA N I E S

80

24%

From DKK 30 t o 41 m i o .

From DKK 42 to 52 mio.

24%

From 36 to 45 FTEs.

0 60

-25%

40 -50 20

The financial crisis 2008-2012 0

YEAR 20 0 0

20 02

20 0 4

20 0 6

20 0 8

2 010

2 012

-10 0

-112% Note 1 Novo Nordisk’s sub-suppliers during the period 2000-2013.

Note 2 Life science companies are defined as companies that are categorised under industry code 21 ‘Manufacture of basic pharmaceutical products and pharmaceutical preparations’; and 7211 ‘Research and experimental development on biotechnology’.

Source Copenhagen Economics and Statistics Denmark.

Note To avoid skewing the figures, Novo Nordisk, Lundbeck and LEO Pharma are not included in the data set for the cluster’s undergrowth. Novo Nordisk’s five largest sub-suppliers are not included either. Development is indicated as the average per company from 2000 to 2013.

Source Novo Nordisk and Statistics Denmark.

F r o m D K K 1. 5 to - 0.2 mio.

From 30 to 23 FTEs.

42

A M O R E AT T R AC T I V E D E N M A R K

A M O R E AT T R A C T I V E D E N M A R K

43

Image: Thue C. Leibrandt

A MORE ATTRACTIVE DENMARK 10

FOCUS ON DENMARK’S UNIQUE STRENGTHS

11

TARGET THE R&D INVESTMENTS OF LARGE MULTINATIONALS

12

STRENGTHEN INCENTIVES FOR R&D INVESTMENT

With the amount of value creation taking place in Danish life science, we should expect a great deal of interest in the cluster from international investors. Unfortunately this is not the case. Generally, Denmark is finding it difficult to attract foreign investment. In fact, a number of the other European countries are much better at attracting investment – from early-stage capital to investments in larger companies.

Furthermore, the rest of the industry has actually received a relatively greater injection of foreign capital than life science over the last 10 years.

44

A M O R E AT T R AC T I V E D E N M A R K

45

A M O R E AT T R A C T I V E D E N M A R K

10

FOCUS ON DENMARK’S UNIQUE STRENGTHS

R E CO M M E N DAT I O N

Danish life science could be better at attracting foreign investment. When international life science companies establish research and development activities in Denmark it strengthens the entire Danish cluster. Partly because these companies bring new ideas, new knowledge and new blood to the ecosystem. And partly because the cluster achieves critical mass – making it even more attractive to talent and investors. That’s why new initiatives to attract more research-intensive companies must be incorporated into a life science strategy.

Focusing more effort on some of the areas where Denmark is really strong within research and development could also be part of the solution to Denmark’s challenge in attracting foreign investment. This is especially true for life science.

There’s no doubt that strong research environments and considerable investment in life science have helped to make Denmark attractive to foreign companies and investments. Here, the Danish Globalisation Strategy has had a really positive effect. It’s important – also for Denmark’s ability to attract foreign investment – to ensure a volume in public research equal to at least 1.5% of GDP. A high level of research is necessary, but not enough to attract even more foreign investment to Denmark. The competition for investment is fierce and global. For a small country like Denmark, we need to prioritise our efforts in the battle for investment in the specialised fields of research. It’s here that life science is really in a position of strength.

For this reason, we will be better at attracting the attention of relevant international corporations and investors.

Investments in Danish life science stagnates G R O W T H I N F O R E I G N I N V E S T M E N T, 2 0 0 4 -2 014 OTHER I N DUSTRIES P H A R M A CE U T I C A L I N D U S T R Y

Image: Cell cultures, POLFOTO, Copyright Corbis/Flirt, Photographer Bill Varie

I N D E X ( 2 0 0 4 =10 0 ) 300

25 0

20 0

15 0

10 0

50

YEAR 20 0 4

20 0 6

20 0 8

2 010

Note The stock of foreign investment in Denmark has been calculated using the traditional asset-liability method.

Source Copenhagen Economics and Statistics Denmark.

2 012

2 014

46

A M O R E AT T R AC T I V E D E N M A R K

11

R&D is placed all over the world R & D CE N T R E S O F T H E 25 L A R G E S T P H A R M ACE U T I C A L CO M PA N I E S

47

A M O R E AT T R A C T I V E D E N M A R K

12

STRENGTHEN INCENTIVES FOR R&D INVESTMENT

R E CO M M E N DAT I O N

R E CO M M E N DAT I O N

P H A R M A CE U T I C A L CO M PA N I E S’ H E A D Q U A R T E R S

Rank

R & D CE N T R E S

23 17

14 25

16

7

10 13

11 3

12

24 4 22 9

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

2

5

18 8

1 6

19 21

15 20

Novartis Roche Pfizer Merck & Co Novo Nordisk Sanofi Actavis GlaxoSmithKline Bristol-Myers Squibb AbbVie AstraZeneca Eli Lilly & Co Abbott Laboratories Valeant Pharmaceuticals Teva Pharmaceuticals McKesson Merck (German) Shire Takeda Sun Pharma Ind. Astellas Pharma Cardinal Health Mylan AmerisourceBergen Perrigo

A more determined effort to attract international investments and activities in research and development could be supported by financial incentives. Denmark, for example, could follow the example of several other European countries and give companies tax credits for certain kinds of research and development.

We suggest that Denmark introduces an increased tax deduction of e.g. 150% for all future investment in research and development.

By doing this, we would draw a line in the sand and turn new investments in knowledge into better business for companies. It wouldn’t cost the treasury much, and it is exactly the type of investment that Denmark needs the most.

According to a new global study, there is a general need to stimulate the willingness to invest – particularly within research and development. The economic crisis in 2008 impacted corporate R&D investment* all over the world. But where big companies in e.g. the USA, China and Japan are now investing heavily in R&D, European companies have typically been slower in picking up speed in investments again.

Denmark is lagging behind in Europe when it comes to the investment climate. According to a recent study by Axcel Invest**, there are 10 EU countries with a more attractive investment climate than Denmark. In the study, which includes non-EU countries, Denmark has fallen from 6th place in 2009 to 15th place in 2014. Denmark has previously been very successful in attracting foreign investment – and we should work more systematically to become so again. * The 2015 EU Industrial R&D Investment Scoreboard. ** Axcel Future, Analysis of Business Conditions, 2016.

If we’re experiencing a workforce shortage in Danish life science, should we be making ourselves attractive to international companies? Yes, because the bigger and stronger a cluster is, the easier it is to attract even more of the most talented employees from around the world.

One survey shows that the world’s 25 largest pharmaceutical companies have established R&D centres all over the world – and not just in their home countries. The survey indicates that Denmark has untapped potential, because apart from Novo Nordisk, it’s only Roche that has an R&D centre on Danish soil.

More and more research-intensive companies are focusing on external innovation. This means that they collaborate on research and development with the strongest environments wherever they are in the world. Consolidating and branding these strengths globally is probably the best way to attract more international companies and investments. It will benefit the life science cluster and Danish industry and the economy in general. Because with more new jobs for highly skilled people, other types of jobs naturally follow – even outside of life science and R&D.

Everything suggests that the tendency to internationalise R&D efforts will continue. And given the large volume of investment among the 25 largest pharmaceutical companies, it can only benefit Denmark to focus on attracting more of their R&D activities.

Image: Seattle, USA, Seattle skyline, Novo Nordisk

TARGET THE R&D INVESTMENTS OF LARGE MULTINATIONALS

Note Inaccuracies in relation to the exact geographic location may occur in the illustration. Calculated at market value.

Source Forbes for the corporate overview of ‘pharmaceuticals’. Annual reports for the location of headquarters and R&D centres.

25 largest pharmaceutical companies

48

L I F E S CI E N CE — A W O R L D O F G R O W T H

L I F E S CI E N CE — A W O R L D O F G R O W T H

49

INVITATION Novo Nordisk recommends a national life science strategy for Denmark. A life science strategy must be able to answer some of the main issues raised in this publication:

Image: Wheat, P&R Photos, AGE

• How do we ensure that we educate enough and sufficiently skilled people in life science?

• How do we make Denmark and Danish life science more attractive to students and researchers from abroad?

• How do we strengthen the power of innovation in life science e.g. by increasing investment in public research and ensuring better conditions for the cluster’s emerging start-ups?

• How can Denmark attract a greater share of international investment in research-intensive industries such as life science?

There are two business policy framework conditions that are essential for the growth of Danish life science. The first is ambitious public research, which is a vital source of powerful innovation for the cluster’s emerging start-ups and really makes us attractive to talent and investment from abroad. The second is to strengthen the competences and talent development in life science.

Neither of these can be safeguarded by the industry alone. We need a concerted political effort, because the gains to be had by investing purposefully in life science will greatly benefit society as a whole. If not, we’ll all end up splitting the bill if the huge potential for growth and good jobs that the life science cluster represents is thrown away due to political inaction.

50

L I F E S CI E N CE — A W O R L D O F G R O W T H

L I F E S CI E N CE — A W O R L D O F G R O W T H

In light of the great importance for growth and jobs the life science cluster already has – and may have in the future – it’s about time it gets its own place in the good company of the business political community.

This is our invitation. RSVP.

With this publication, Novo Nordisk has identified the need for, and the potential of a strategic focus on Danish life science. It is essential that a national strategy is based on a

solid foundation of knowledge and developed in cooperation with life science players in and around the cluster.

Focusing on life science at an ambitious and strategic level – and anchoring this effort on a highly political platform – is something that other countries such as Great Britain have done successfully for many years. In Denmark, there has never been a comprehensive strategy in this area and the responsibility for life science has been spread across many public agencies.

In light of the great importance for growth and jobs the life science cluster already has – and may have in the future – it’s about time it gets its own place in the good company of the business political community. This is our invitation. RSVP.

Image: Blade of grass, Scanpix, Credit: Marek Mis/Science Photo Library

To ensure a permanent focus on life science, a life science strategy should be well anchored politically and administratively. This could be achieved by establishing an independent office or a committee under the auspices of e.g. the Ministry for Business and Growth. This unit would then have the responsibility for implementing and following up on the strategy and government policy for this area. To prepare political effort properly, we propose that the government establishes a group of experts to gather and analyse the necessary knowledge about Danish and international life science – in order to make recommendations for a long-term national strategy. Representatives of the relevant ministries and agencies, life science companies and universities would be among the members of this group – as well as other professional expertise as needed.

51

June 2016 2nd edition Published by Novo Nordisk A/S Novo Allé, 2880 Bagsværd Contact Novo Nordisk R&D Policies and Trends Circulation 1000 copies Copy editing by Ola Jørgensen Graphic design by e-Types Daily Printed by Graphic Unit www.novonordisk.com