Lecture 2 - Biotech as a Business Flashcards
What is Biotechnology?
Using knowledge and ideas in science research in society for goods and services businesses
Role of scientific research in the national economy
- Government provide funding to national science body for ‘basic’ university research
- New knowledge leads to scientific ‘capital’ for science-based enterprises
- New products and jobs can be created which would be taxed, returning money to the government to be used as fundings
What is the Bayh-Dole act?
- Encourage the utilization of inventions produced under US Government funding by giving clear IP rights to universities.
- Result is the patenting of university research
What is a Patent?
A government authority or license conferring a right or title for a set period, especially the sole right to exclude others from making, using or selling an invention
What is a License?
It is a permit to do something
What is a Venture Capitalist?
An investor that provides capital to firms exhibiting high growth potential in exchange for an equity stake (percentage of the business)
What are Shares?
Ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends (a sum of money paid by the company to its shareholders out of profit)
What is the Basic Biotechnology strategy I?
Biotechnology is driven by investment. Investment is money (and time) spent now in the hope of a future benefit
What is the Basic Biotechnology strategy II?
- Government provides funding for research, creating intellectual property
- Investment creates intellectual property, forming a business creating sales
What is the Basic Biotechnology strategy III?
Return on investment requires time
How do government fund university research?
National funding bodies: 1. Australian Research Council
2. National Health and Medical Research Council
“Block grants”: provide states, territories and tribes with funds they can tailor to meet their specific population’s needs, in the case of university - to build libraries, laboratories and various infrastructure