Byline: Chris Plecash
Publication: The Hill Times
Date: April 25, 2011
Ottawa continues to grow as a national life sciences and biotechnology centre, but while companies credit strong ties to federal agencies and research institutes for providing an ideal base for start-ups, recruitment of internationally experienced experts remains an obstacle.
The Ottawa Centre for Research and Innovation (OCRI) economic development corporation estimates that the national capital is currently home to 90 companies focused on life sciences and biotechnology research and innovation. OCRI estimates that an additional 50 other companies have a secondary focus in life sciences and biotechnology. The local industry encompasses life science ventures ranging from genomics to health informatics, as well as companies focused on developing biofuel and genetically-modified organisms.
Mike Darch, OCRI’s executive director of Global Marketing, noted that Ottawa has historically been home to life sciences research by post-secondary institutions and government agencies, but he credits the city’s well-established information technology sector with leading the recent growth of the local life sciences industry.
“We have a long history of entrepreneurism that goes back to the ’80s, but flourished in the ’90s with the growth of Newbridge and other ICT companies,” he said. “That growth is now carrying over into the life sciences sector.
“One ICT company that has entered the life sciences sector in recent years is Zarlink Semiconductors, whose low-powered radio transmitters are now being used in wireless health care. Since the company’s devices began to be used in medical applications five years ago, sales to the medical field have become 10 per cent of annual revenues.
Although Zarlink does not conduct medical research in Ottawa, its locally-developed wireless devices are now used in pacemakers and other health monitoring devices manufactured in the U.S. and Europe. The company has also collaborated with Israel-based Given Imaging to develop an ingested camera capsule that functions as an endoscopy.
Mr. Darch noted that Ottawa’s burgeoning biotech sector also has a competitive advantage through its proximity to government agencies such as the National Research Council, Health Canada, and the Canadian Food Inspection Agency, as well as its access to the city’s highly-trained work force.
Mr. Darch credited access to the national life sciences regulators with facilitating collaboration between the private and public sectors.
“Networking is a two-way street. The agencies talk to industry and industry talks to the agencies. It’s not just the fact that you can file applications easily, it also provides for regular contact and collaboration,” Mr. Darch said.
Allphase is one Ottawa-based company primarily focused on bioinformatics. It specializes in monitoring clinical trial data for the research projects of other biotech companies.
Allphase CEO and President Jeff Smith said the company has benefited from its proximity to the federal government, as well as the modest scale of Ottawa’s life sciences sector. While the city’s life sciences sector remains small in comparison to Toronto and Montreal, it makes it easier for start-ups and mid-sized companies to network and maintain their industry connections. “Ottawa still has a small biotech cluster, so there’s good networking opportunities that don’t get too diluted,” said Mr. Smith.
In addition to being close to Canada’s regulatory agencies, Ottawa’s internationally focused life science companies also benefit from their access to embassies.
Steve West is CEO of Nordion, Canada’s leading producer of medical isotopes. The company exports 97 per cent of its products, and he considers diplomatic contacts as a key factor in Nordion’s international success. “Every single country has its high commission or embassy in Ottawa. It’s helpful for us to establish trade links,” said Mr. West. “Canada has a remarkably good global infrastructure in its overseas mission.”
Nordion also maintains a partnership with the University of Ottawa Heart Institute. Mr. West said that this collaboration with the institute has enabled Nordion to share its commercialization and regulation expertise with U of O’s faculty and students, in return for access to skilled researchers and infrastructure.
Joe Irvine is director of Technology Transfer and Business Enterprise at the University of Ottawa. He observed that collaboration between university departments and the private and public sectors has enhanced the training of life sciences graduates at U of O. It has also positioned students and faculty to launch start up companies in a wide range of biotech fields, ranging from health information technologies to biodiesel generation.
Carleton’s Department of Biology and its Institute for Biochemistry also engage in collaborative research with the CFIA and the federal ministries of agriculture, health, and the environment. Dr. Owen Rowland, associate professor of biology and biotechnology, noted that the school’s working relationships with these agencies provides students with first hand experience of federal policy and regulation of biotechnology and life sciences. As a result, graduates enter the workforce with a solid understanding of federal regulatory policy.
Variation Biotechnologies is an Ottawa start-up that emerged from academic collaboration at U of O. The company, established in 2001, is developing thermal stable vaccines that can be transported without refrigeration.
Adam Buckley, Variation’s VP of Operations and Project Management, said that the company benefited greatly from access to the National Research Council and the facilities at Ottawa’s Children’s Hospital.
“When we got started we almost immediately started with the NRC,” said Mr. Buckley. “We incubated in some of CHEO’s research facilities and paid a little bit of rent to get going. When you’re getting started in biotech, it’s always helpful to work with groups that already have infrastructure in place and not have to invest in all of that infrastructure on your own.
“Ten years after its founding, Variation now maintains a collaborative relationship with researchers at the University of Ottawa.
With both the Liberals and Conservatives pledging to support science and technology in their election platforms, Ottawa’s biotechnology sector will likely continue its expansion. The Liberals say they will promote health and biosciences through a variety of tax incentives for start-up science and tech firms. The Conservative platform promises to promote private sector investment in science and technology, and encourage enrollment in science and engineering at the post secondary level.
Although the presence of federal agencies, private companies, and post-secondary institutions has provided fertile ground for the industry as a whole, Ottawa is still in the early stages of being a life sciences cluster.
Michael D’Amico is the senior vice-president of Human Resources for IOGEN, an Ottawa-based company that originally specialized in industrial enzymes, and now develops technological processes for generating biofuel. While he agreed that operating in Ottawa confers certain competitive advantages, there are also difficulties in attracting experienced managers to oversee research. When it comes to attracting workers from outside of the city, many are looking for the security of employment options.
“People will ask, ‘If it doesn’t workout with IOGEN, will I have other alternatives in Ottawa?’,” Mr. D’Amico observed. “They don’t see a really thriving breadth of companies, and that can restrict the number of people we have access to that are willing to relocate to Ottawa.”
Nordion encounters a similar problem. Steve West noted that even though Ottawa’s life science sector continues to grow, it’s small in comparison to cities like Toronto. With a low international profile, he says that it’s difficult to attract globally experienced managers and specialty staff.
Finding career-seasoned biotech and life science workers is an even greater obstacle for start-up companies. In addition to his work with IOGEN, Mr. D’Amico serves on the board of directors for BioTalent, a company that helps newly-established companies to recruit skilled workers.
“A lot of these smaller companies don’t have HR departments,” he noted. “They want to invest in core competencies and equipment.”
If Ottawa is to reach the status of a national leader in life sciences and biotechnology cluster, Mr. D’Amico said he believes that continued collaboration within the local industry is pivotal.
“I think that the whole can be more valuable than the sum of the parts. If we can grow the whole life sciences cluster here in Ottawa, I think each of the individual companies will succeed and be all the better for it,” Mr. D’Amico said.