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  Biotech Companies Experiment with Clusters   Biotech Companies Experiment with Clusters  Edwin Colyer  
         
 
Biotech Companies Experiment with Clusters And then there is Silicon Valley. Hardly a valley at all, really, yet most people know this is the home of the high-tech industry.

This metaphysical valley has worked wonders for the region around San Jose. The critical mass of high-tech business stimulates innovation. New companies constantly spring up, while any serious player in the information technology world knows it needs a Silicon Valley presence.

The success of the Silicon Valley moniker has spawned Silicon Hills in Texas, Silicon Alley in Manhattan, and even Silicon Glen in Scotland.

Now, the biotechnology sector is following suit. Some people believe the impact of biotechnology will be on the same scale as that of computers, so it seems appropriate that biotech clusters should also choose to create “valley” communities. Except today a cluster identity is far more than just a moniker; it is usually a trademarked and fiercely protected brand too.

Medicon Valley is a fine example of how biotech is taking clustering seriously. In 1995, the regions around Copenhagen in Denmark and Skåne in southern Sweden were about to be linked by the Oresund Bridge. Together the two areas identified biotechnology as one of their main industrial strengths. Medicon Valley, spanning from Copenhagen to Malmo, was born. The number of biotech firms in the area has grown since then from 58 to almost 150.

“We were one of the first areas to name an area of biotech clustering,” remarks Rolf Larssen, managing director of Copenhagen Capacity, the inward investment agency for the Copenhagen region. “Now a lot of regions go with the valley or bio idea. If you're trying to give a region (an attractive) look for investment, (you) need a name to indicate there's a cluster.”

“We actively promote Medicon Valley,” Larssen continues. “It is not just a term we use, it is definitely a brand. Whenever we go to exhibitions, we have a big sign with the Medicon Valley brand and a map of the area with logos of all the companies located here. It is eye catching for biotech people and they invariably recognize many of the logos on our map. And when companies from here are talking, and they are asked where are they from, some may say Denmark or Sweden, but I reckon most would now say Medicon Valley. It is probably better known than Denmark or Sweden in biotech circles.”

 
Medicon's Valley's successful marketing is being replicated around the globe. Just south of Medicon Valley lies BioCon Valley, one of Germany's official biotech and life science “hotspots” in the Mecklenburg-Vorpommern state of northeastern Germany. The BioCon Valley brand was launched in 2001.

Explains Heinrich Cuypers, senior project manager of BioCon Valley GmbH, “We wanted international recognition. Biotechnology is an international business. We wanted to be ambitious with international businesses. If you are going to develop a biotech sector, you will be competing with San Francisco, Cambridge, Shanghai, etc. We needed to show companies they could be successful in the international arena. Our brand helps to show externally that we are ready to be competitive and show people internally that they need to think global.”

“The valley concept works,” he says. “We are often asked where our valleys are. Our highest point here is about 200 meters. But thanks to Silicon Valley, people immediately realize that we are talking about a regional industrial cluster.”

In the US, meanwhile, the St. Louis Regional Chamber & Growth Association (RCGA) has spearheaded an effort to get its own biotech sector on the map—the St. Louis BioBelt: the Center of Plant & Medical Sciences. This sector’s development stems from the Battelle Memorial Institute’s analysis that revealed an area rich in plant and life science assets and expertise. The ensuing 20-point action plan included the establishment of an umbrella brand and a marketing position.

“We were beginning to see an emergence of these cluster brands, for example Research Triangle Park,” explains Dick Fleming, president and chief executive officer of RCGA. “St. Louis was a new player with demonstrable assets, but not on the radar screen. We would need a marketable hook to demonstrate the region to industry. We also needed the community here to understand the importance and economic value of our life and plant sciences assets.”

“The BioBelt brand was a critical foundation and starting platform for creating an identity for the assets already here. It was also a rallying point for the life science community here. Before BioBelt, people wouldn't talk about the opportunities in the life sciences here,” continued Fleming. “Now even sports presenters will mention life sciences in their broadcasts.”

Linda Magee, head of the Bionow initiative in the northwest of England, agrees that cluster branding is important to build a vibrant community. “Bionow is a brand belonging to the Northwest Development Agency. It represents the cluster development program of the Agency in life sciences and the pharmaceutical industry. The Bionow name is firstly shorthand for the Development Agency's program,” Magee explains, “but everyone was aware of Research Triangle Park and Medicon Valley and we thought it would be important to do the same. A cluster brand would give members of the biotech community here a better sense of belonging.”

However, there is a major difference between Bionow and many of the other cluster brands. Magee notes, “We are a sub-brand of the Agency and the Bionow brand is used in conjunction with the agency brand. It would be inappropriate to eclipse the Agency brand. We don't exhibit or advertise as Bionow, for example.”

Bionow has been successful in its work (The cluster is the UK's third largest.), but perhaps as a result of the brand ambiguity or perhaps because Bionow lacks obvious geophysical references, Magee concedes that companies may still refer to the cluster as the northwest biotech cluster, rather than Bionow.

Perhaps a geographical-sounding moniker is more important than a brand?

 
Michigan, for example, has opted to develop the Michigan Life Sciences Corridor, but has no specific brand for the initiative or the cluster. “We do not really have a defined logo, brand or visual image for the corridor,” admits Jeff Mason, vice president of technology development in the Michigan Economic Development Corporation. “It is more a name and moniker. When we go to trade shows or events, we go as the Michigan Economic Development Corporation, but we'll talk about the corridor.” About 100 new companies have opened in Michigan since the corridor was established.

But Mason acknowledges that a brand could have a powerful influence. “I think we'd certainly get more value from creating a brand. But we struggle with resources. So we just focus on communicating our key messages consistently: the strengths of our university system and research efforts. The large number of biotech companies we already have and testimonials where people talk about the benefits of being here.”

Mason need not worry too much if he is getting his message across. Most of the best biotech clusters in the word, such as Boston and San Diego in the US, and Cambridge in the UK, do not have umbrella brands. They merely have a reputation and a long-standing heritage of excellence in biotech research and development.

Indeed, the success of biotech clusters depends far more on developing infrastructure, facilitating innovation and nurturing spin-offs and start-ups than any cluster marketing program. Yet for those regions wanting to bring in the biotech bucks, this financial and business support will never be enough. These regions have to prove that their “valleys” are fertile and perfectly situated for the biotech boom.     

[1-May-2006]

 
  
  

Edwin Colyer is a science and technology writer based in Manchester, UK.

     
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