EDITORIAL

VIEW ON THE CONSTITUTIONAL CRISES: Almost every Nigerian has complained about the ineffectiveness of the governace by the Nigerian leaders, and has expressed strong dissatisfaction with the structural and geographic amalgamation of Nigeria. They have singled out the constitution as a seriously 'flawed' document. The first problem is that Nigeria has so many 'old guards' with both feet entrenched in the Nigeria politics who adversely modulate the political waters, and by extension the economy. Nigeria is divided into three major ethnic groups who are clustered in the three geographic regions: North, East and West. Each region is subsequently divided into x-number of states with identical characteristics. In view of this arrangement, it will be far to suggest that in order to resolve the 'constitutional crises' each region [a collection of States] should set up their respective CONSTITUTIONAL REVIEW GROUP]. With the current, flawed National constitution as the framework, each group should draft their version of an acceptable constitution to submit to the President. Finally, the President should constitute a National review group that will assmeble these regional recommendations, analyze and distil the documents and write up a CENTRAL CONSTITUTIONAL that can be submitted to the nationl assembly for a debate. The advantage of this procedure is that each region's view of Nigeria is recognised, addressed, and documented. The faith and future of Nigeria should, therefore, not be dependent on who the President is or which region he comes from since his role as the President is to uphold the constitution as well as preside over its proper implementation. ------------------ THE CASE FOR SCIENTIFIC INNOVATION - BIOTECH:

Academia teach basic science while biotech apply basic science.

The greatest challenge to scientific innovation is not lack of ideas but, rather, successfully managing innovation so that it delivers the required return on the company’s investment of money, time, and people. Historically, most attempts to innovate fail to deliver the return on investment – cash payback – within the planned timeframe.

The winning situation is created when an investment on innovation generates something new that produces cash return quickly, and exceptionally impressive when the cash return is particularly larger than expected. This is the ideal outcome. The scientific innovation could be a new product or process. It would appear that the human benefits of innovation are being down played. No. The fact remains that without the economic advantage, the motivation and mechanism for sustainable innovation will be mute or, at best, diminished..

Biotechs are at the fore front of this type of innovation. As a science-based business, it poses unique business challenges. In view of the unprecedented nature of this proposal, the sustainability of a company will depend entirely on a protracted government commitment to financing.

Biotech for an emerging economy is futuristic because Nigeria, for instance, lacks the soft infrastructure that makes markets work efficiently. European and American companies can raise large sums of money at a low cost because they have well established financial markets. They have the ability to hire talents easily.

The absence of this structure, specialized intermediaries, regulatory systems, and contract-enforcing mechanisms, in emerging markets makes it difficult for them to access capital or talent as easily and/or inexpensively. As a result, investment in R & D is hampered. The government is, therefore, encouraged to spearhead and jumpstart biotech companies either directly or, preferably, by making capital available to the innovating professionals.

To circumvent these problems, the local company should establish workforce of both local and foreign talents, while relying heavily on government grants until self-sustainability is attained. The company should maintain international collaboration.

Biotech is a segment of the "HIGH TECH" industry that engulfs a broad range of disciplines such as engineering,soft wares - computers, and other related fields. Considering this complex definition, when a product is developed, the initial market is at the bottom where people can afford the product. The development and improvement stage is managed at the middle layer of the pyramid. At this stage the local consumers will show their preference and satisfaction for the quality of the product including the pricing. The talent of scientists and managers at this stage is heavily local, paid at higher-than-average wages. At the Global level, the product has been developed to a competitive world class standard. The talent pool should become mixed with local and international staff to maintain the product at international level. Drug development take a slightly different slant.
GLOBAL
MIDDLE [LOCAL]
LOWEST
PRODUCT MARKET LOCALE [PYRAMID]

The biotech industry has a great future. It’s no longer a new science per se especially in the industrialized countries. However, it is a non-existent science in emerging economies making the potential for entrepreneurial business enormous. Biotechs are usually small clusters of highly specialized individuals, not burdened by the huge numbers of employees typical of huge pharma. These specialized professionals possess the drive, experience, and intensity required for the success of any R & D effort.

A major advantage of the biotech is the capacity to emerge outside of the dominant established pharmaceutical giants. As a science-based business it will foster the transition from basic science to applied science with the distinct possibility of generating a trove of new drugs. These new drugs will generate vast profits as well as improve the quality of life.
Consequently, the investors will be rewarded handsomely.

Emerging economies have not demonstrated significant investment in academic research either. Therefore, biotech will be a desirable bridge between academics and industry. Although there is a potential for a biotech failure, yet any success is financially rewarding, exponentially.

The success of a biotech company is evident in such companies as Amgen (USA) and Genentech (USA) to name a few. Genetech, founded in 1976, was created to capitalize on the recombinant DNA technology, a technique for engineering cells to produce human proteins. This technology was co-invented by Herbert Boyer, a professor at the University of California, San Francisco, and Robert Swanson, a venture capitalist. In the U. S (2010), Genentech has 3 drugs in the top 200 drugs [Boniva, bisphosphonate with about $500 million in sales; Tarceva, EGFR inhibitor with a sale of $160 million; and Pegasys, antiviral interferon with a sale of $153 million.]. Amgen, located at Thousand Oaks, California and founded in 1980, is the world’s first big biotech company known for its drugs for the treatment of anemia – a condition caused by the destruction of red blood cells. Amgen markets recombinant protein therapeutic products for nephrology, supportive cancer care, and immunology. In 2010 Amgen has a revenue of $15 billion and markets 2 drugs [Embrel, antirheumatics –TNF alfa inhibitor with sales of $475 million; Sensipar, sales of $382 million], in the top 200 drugs in the U. S while distributing more than 12 drugs. The current stock price is $69.96 per share.

For emerging economies, success will depend on how well they adapt this science-based industry to their local industrial environment. Rather than attempt to re-invent the wheel, they should learn to avoid certain obvious pitfalls of failed start-ups. To establish a successful biotech company, the investors should learn how to do the following:

1. Manage risk and reward risk taking
2. Integrate the skills and capabilities within the several diverse disciplines and functions
3. Establish the ability to advance critical specialized knowledge at the organizational and industrial levels.
4. Improve the interdependence and/or collaboration of the relevant, related and invested specialties to avoid creating pockets of isolated expertise.
5. Develop and control their intellectual property so as to lock-up the rights to basic scientific knowledge as a means of commercializing basic science, and
6. Learn to license the patents.

Genentech outsourced the manufacture and marketing rights of their recombinant insulin to a major pharmaceutical company, Eli Lily, to circumvent one of the major barriers to new biotechs entering the pharmaceutical business: the huge cost (over $1 billion for 12 years), generally required to develop a drug, This is an illustration of the mechanism by which biotechs survive the tremendous financial demands of biotech R & D.

Biotechs serve a niche. They provide an economical and efficient means of replenishing shortages in the drug pipeline of major pharmaceutical companies. While major pharmaceutical drug companies expand on science that is technically feasible, biotech explore new frontiers in science by taking long term risks. Consequently, biotechs are exposed to a high risk of failure.

The critical criteria for Technology Transfer should include the following:

1. NEED: The technology must be tailored to the needs of the local environment, state and/or country. The need is defined as SUITABILITY and URGENCY, and will be based on overall national sectoral priorities.
2. ADAPTABILITY: It must be possible to adapt the technology to the local environment. Adaptability is determined by ABILITY and WILLINGNESS. The ability to adapt is affected by the lack of sufficient science and technology based in terms of availability of skilled manpower maintenance facilities, materials in needed quantity and quality, presence of facilitating institutions and change agents. The willingness to adapt depends on the strength of custom, tradition, power relationships within the society and similar cultural, social and political considerations.
3. RELATIVE FREEDOM FROM THE RISK OF OBSOLENSCENCE: There should emphasis on “MASS TECHNOLOGIES” – technologies whose interface with the eventual user is close and extensive. The technology transfer must be supported throughout its useful life.
4. AVOIDING ATTEMPTS TO RE-INVENT THE WHEEL AND REPEAT MISTAKES: The advanced economies are far ahead in technological advances, and along the way have make series of mistakes. Emerging economies, as late comers, should avoid the documented mistakes as well as avoid trying to re-invent the wheel – redundancy.

The new-age paradigm is swiftly shifting from the daily hum-drum street hustle and bustle of buying and selling to a more technically oriented market structure. In emerging economies, in particular, this shift should not only boost professional employment but also foster a unique entrepreneurial spirit. The success of this new way of thinking will depend on how well leadership adapts to the change both politically and in business culture. Most governments are a microcosm of major multinational corporations whose structure and business culture are almost written in stone. They harbor a management system that rewarded short term results rather than for strategic business building. They are preoccupied with status quo, and executive policies that adversely affect start-ups and/or embryonic businesses. In addition, they lack a favorable process suitable for funding and developing new businesses. To overcome the drag of colossal government and its anti start-up policies, policy makers should concentrate on developing new businesses by identifying and supporting business proposals that show promise.

Although breakthrough in drug discovery is sparse, yet the cash reward to investors is staggering for every success. New technologies take time to incubate before yielding dividends. A few examples are: Google, Microsoft, Apple, and Facebook.
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