Perceptions of Management Issues in Biotechnology in Thailand

1
Perceptions of Management Issues in Biotechnology
in Thailand

• A Presentation for
• by
• Associate Prof. Siriyupa Roongrerngsuke, Ph. D.
• Sarote Phornprapha, Ph.D.
• for
• Eighth Asian Bioethics Confernece (ABC 2007)

2
Current Situation of Biotechnology in Developing
Countries

• Global system governing biotechnology has
  dominantly been shaped by Western hopes and fears
  and more research is needed to explore how
  developing countries view this technology.
• Few surveys have been conducted in developing
  countries to clarify how biotechnology is
  understood, perceived, and discussed.

• Oversimplification of the risks and benefits of
  biotechnology
• Ineffective, inefficient, or even irresponsible
  management of biotech business

Aerni, 2004
3
Research Objectives

• To investigate the issues/topics to be included
  in the development of a curriculum of the course,
  Principles of Biotechnology Management for
  students of Master Degree in Biotechnology
  Management Program for the first time in Thailand.

4
Research Methodologies

• Literature survey on related topics which
  includes
• corporate governance
• biotechnology companies Vs. ethical issues
• the stakeholder concept in biotechnology
• management issues in biotechnology
• Development of a draft of Principles of
  Management for Biotechnology Course Curriculum
• Survey of perceptions and comments on issues to
  be included in the curriculum designed for the
  course Principles of Management in
  Biotechnology as drafted by the researchers. The
  methods to be used to survey the perceptions are
• Individual interview
• Focus group interview

5
Research Methodologies

• Populations
• Individual interview Interviews were be
  conducted to explore perceptions and comments
  from
• 3 experts in academia in biotechnology from
  leading universities/institutes in Thailand
• 8 top management from leading biotechnology
  companies in Thailand (preferably those listed in
  the SET) which include
• agricultural industry (at least 2 companies)
• food industry (at least 2 companies)
• healthcare industry (at least 2 companies)
• pharmaceutical industry (at least 2 companies)
• 3 managers from each company listed above

6
Researcher Methodologies

• Focus group interview Interviews were conducted
  to explore perceptions and comments from 24
  managers working in non-biotechnology companies
  and 25 from managers of non-biotech companies
• Interviews were conducted to survey general
  awareness and perception of 50 people
  representing the public regarding biotechnology
  industry and management issues in biotechnology
  industry in Thailand.

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Review of Related LiteratureTopics involved in
the design of an appropriate curriculum for
biotechnology management

• Corporate governance, business ethics and
  bioethics
• How biotechnology companies are currently dealing
  with bioethical issues
• The stakeholder concept in biotechnology
• Fundamental issues in management course

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What is Corporate Governance?

• Corporate governance refers to the private and
  public institutions, including laws, regulations
  and accepted business practices, which together
  govern the relationship, in a market economy,
  between corporate managers and entrepreneurs
  (corporate insiders) on one hand, and those who
  invest resources in corporations, on the other.
• Investors can include suppliers of equity
  finance (shareholders, suppliers of debt finance
  (creditors), suppliers of other tangible and
  intangible assets that corporations may use to
  operate and grow.
• (Oman, 1999)

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How biotech companies are dealing with ethical
issues?

• Kato and Macer (2003) conducted a survey of 559
  biotech companies in USA, UK, France, Canada, and
  Germany about how they respond to bioethical
  issues.
• Study reveals that companies respond to the
  issues differently and among those 559 companies,
  only 11 per cent of companies reported that they
  had codes of ethics, another 11 per cent had a
  policy or policy statement on ethical issues, and
  5 per cent had only general codes of conduct not
  especially about bioethics.

10
The Stakeholder Concept in Biotechnology

• Freeman (2001), a renowned scholar in the field
  of business ethics views that stakeholders
  simply refer to those groups who have a stake in
  or claim on the firm including suppliers,
  customers, employees, stockholders, and the
  firms local community.
• Stakeholder analysis can provide biotechnology
  companies with a lens through which to pay
  attention to the full range of interested
  parties. (MacDonald, 2004)

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Management Issues in Biotechnologty

• Fundamental knowledge of principles of management
  and strategic management for biotechnology
  industry
• Fundamental knowledge in biotechnology
• Understanding entrepreneurial mindset in startup
  and large companies.
• Finance financing for biotechnology business,
  grant proposal strategies and management
• Marketing market analysis, marketing strategies
  for biotech products

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• Regulatory issues in biotechnology industry such
  as clinical trial process for both devices and
  drugs in biomedical technology, FDA approvals.
• Intellectual property issues and
  commercialization
• Project management
• Product development and transition to business
  units
• Bioethics and legal issues
• Stakeholder analysis and corporate governance

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Results

• OVERALL RESULTS
• Most respondents agree that there is a need for
  the development of biotechnology management
  course to prepare managers to be fluent in the
  following areas
• Fundamentals of management, strategic management,
  entrepreneurship in biotech industry
• Marketing of biotech invention
• Financial management and grant management
• Management for invention and innovation
• Corporate governance for biotech business
  (bioethics and legal issues)
• Intellectual property of biotech products
• Managing conflicts of interests and safety issues
  in biotech companies
• Creating and managing human resource in biotech
  business
• Among these eight areas, the marketing of biotech
  invention appears to be the area that respondents
  deem the most important area to be offered in the
  curriculum

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Issues Perceived by Biotech-based Managers

• Fundamentals of management, strategic management,
  entrepreneurship in biotech industry
• Intellectual property of biotech products
• Corporate governance for biotech business
  (bioethics and legal issues)
• Marketing of biotech invention
• Financial management and grant management
• Management for invention and innovation
• Managing conflicts of interests and safety issues
  in biotech companies
• Creating and managing human resource in biotech
  business

15
Issues Perceived by Non-Biotech Managers

• Fundamentals of management, strategic management,
  entrepreneurship in biotech industry
• Marketing of biotech invention
• Financial management and grant management
• Management for invention and innovation
• Intellectual property of biotech products
• Corporate governance for biotech business
  (bioethics and legal issues)
• Managing conflicts of interests and safety issues
  in biotech companies
• Creating and managing human resource in biotech
  business

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Other Issues from Experts in Biotech

• Biotech is a very important field and mechanism
  to drive national development and growth
• Lack of understanding and adequate support from
  Government
• Problems of legal issues
• Lack of understanding and awareness of biotech
  from the public make it difficult to receive fund
  and support
• Good management is really needed

17
Other Issues from Managers of Non-Biotech

• 90 of managers in the non-biotech companies are
  not familiar with the term biotechnology, and
  are not certain about what the term really means.
  They are not certain if they know the biotech
  products and/or inventions as existing and/or
  available in the daily life.

18
Other Issues from the Public

• 78 never heard of the term biotechnology
• 11 heard of the term biotechnology but do not
  know the meaning
• 11 heard of the term and understand the meaning
  and importance of biotech

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Summary Recommendations

• Public needs to be educated about biotech.
• Management knowledge in biotech industry is
  perceived as very important
• Prior to the dissemination of biotech management
  knowledge, awareness of the field must be created.