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Product challenge lies in manufacture innovation
One of the most successful incubators for new firms are cone crusher industrial clusters, of which Silicon Valley is the best-known and most imitated example. Firms cluster together for a variety of reasons: the skills that are available in a particular area, the concentration of specialist services and the venture capital from investors with a close understanding of their market. Usually there are universities and research laboratories nearby, so the process of coming up with new ideas and the means of turning those ideas into products are closely linked. This relationship is set to become even more intimate with new manufacturing technologies. “We have technologies now we are only able to exploit if we have manufacturing capabilities in some proximity to those innovations,” says Ms Berger. You do not have to move far from her office to find examples.
Boston’s biotechnology cluster consists of pharmaceutical companies big and small, attracted in large part by the research being carried out in the region’s hospitals and universities. In the biological sciences the development of manufacturing capabilities is closely linked to that of the product, says Phillip Sharp, a Nobel prize-winner and co-founder of what is now called Biogen Idec, a Massachusetts-based biotechnology firm with annual revenues of $5 billion. What currently excites the industry, says Mr Sharp, is nanotechnology. This takes its name from the word for a billionth of a metre. When materials are measured at the nanoscale they often have unique properties, some of which can be used in beneficial ways.
Nanotechnology makes it possible to manufacture, on a tiny scale, new therapeutic substances carrying information on their surfaces that can be used to direct them to particular cells in the body. The drugs delivered by such substances could be valuable in treating diseases like cancer. They are being made in small quantities now, says Mr Sharp; the challenge will be to scale up those processes once clinical trials are completed. And that, too, he adds, will depend on both product and manufacturing innovation working together.
Making drugs for the most part remains an old-fashioned batch-manufacturing process. This involves assembling ingredients, often from different countries, processing them in a chemical plant into a batch of drug substance, then turning that substance into pills, liquids or creams in another factory, which might be in yet another country. All this involves a lot of moving around of drums and containers, and plenty of ball mill inventory sitting idle. It is time-consuming and expensive.
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