Science and innovation – The new frontier
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
Today, more than ever, there is a strong need for organisations to keep up the pace of innovation particularly in pharma space
No single phenomenon has had a deeper and broader impact on modern society than science. Science as a culture has shaped our contemporary institutions, organisations and societies. The impact of scientific progress on the economy has been equally dramatic. Almost all goods and services with a high value-add, embody elements of scientific knowledge. Medicines and medical treatments are outcomes of research in biology, chemistry, biochemistry and genetic engineering. Software and hardware developments in computational science contain elements of advanced mathematics, physics and system engineering.
Today the service industry is increasingly dependent on advanced information technology, and insights from psychology, sociology, economics and management sciences. In a society where money and economic growth are regarded as the most valid indicators of performance, science is at the root of all economic impact. For policymakers too, focusing on science becomes a simple model of innovation and growth, where prudent investments foster innovation-based growth.
Without exaggerating the direct impact of science on innovation, we also need to acknowledge experienced-based learning that is ostensibly revolutionising innovation today. Understanding markets and organisations are on an equal footing with scientific research aimed at developing new technology. This experience-based learning is indeed a prerequisite for transforming scientific knowledge into economic performance. In order to transform the knowledge produced by R&D into commercial results, firms need to engage in interactive learning externally with customers and markets and manage the feedback from the broader social and institutional environments.
The recent coronavirus crisis has clearly demonstrated the role of science and technology in addressing the many global challenges faced by the world around us. The pharmaceutical industry is one segment where innovation has had a crucial role to play, as it impacts the quality of life. The creation of the COVID-19 vaccine and its deliveries across the world has indeed brought science and innovation back to focus, particularly for our pharma world.
According to McKinsey’s ‘Innovation Through Crisis’ Survey report in April 2020, only pharma and medical products have increased their focus on innovation during the coronavirus crisis. Also, the commitment to innovation was higher by 30 percent for pharmaceuticals sector, according to the report.
Companies that invest and focus on innovation perform better than their peers. Interestingly, innovation cannot be a one-sided affair; it needs a collaborative approach with peers and partners. Companies today, are realigning their budgets and are incorporating innovative solutions like digital communications, Artificial intelligence, Virtual Reality and Augmented Reality which will help organisations emerge smarter and sustainable with enhanced productivity.
For the pharmaceutical sector, the focus on research and innovation has significantly strengthened. Companies are collaborating with scientific institutes and research bodies to fast-track innovation and strengthen infrastructure, like never before. A lot of pharmaceutical companies are entering some exciting spaces through collaborations and partnerships.
The challenges this industry faces are no less daunting. It costs a pharma company anywhere between $1 billion and $4 billion and 10-15 years to bring a new drug to market. What’s worse, fewer than 10 percent of drugs actually make it to market to help people. (In comparison, SpaceX’s flagship rocket system, Falcon 9, cost about $400 million and took five years.)
That drug discovery is becoming slower and more expensive over time is known as Eroom’s law, which says the cost of bringing a new drug to market roughly doubles every nine years. This is despite advances at the intersection of technology and biology, including computational drug design, high-throughput automation, and the ability to read, write and edit DNA faster and cheaper every day. Compare that to Moore’s law which claims the power of computing per unit cost doubles every 18 months, making computational costs cheaper by the day. In just the reverse under Eroom’s law, the unit cost of drug development has increased to the point where drug development has become nearly cost-ineffective.
The challenges don’t just end here. Despite the staggering time and cost to make a new drug, nine out of ten drugs still fail in clinical trials. Nothing but science, technology and innovation can transform the pharmaceutical industry into greater prosperity. Hopefully, that transformation may already be unfolding.
At Merck, we have seriously deep-dived into the field of synthetic biology, the most radical field of bioresearch. Synthetic biology combines advances in computation, automation, and our ability to read, write and edit genes to change the way we build things with biology. Synthetic biology is rooted in academia, industrial biotechnology, and bioengineering with an aim to rationally engineer cells to solve society’s needs more quickly, more effectively and more sustainably than conventional biological and chemical technologies.
The story of how the pharma industry responds to COVID—and synthetic biology’s role in that response—isn’t done being written yet. Let’s hope it’s the first chapter of a bright new future where tools and technologies—ultimately science—are used to create better medicines, faster and cheaper. We must always remember technology shapes human progress, which is very crucial not only for meagre survival but for overall progress.
Today, more than ever, there is a strong need for organisations to keep up the pace of innovation. An important element of tomorrow’s innovation is digitalisation. Organisations that have analysed immense data for entering newer portfolios or for creating a new business model are only being future-ready. Data analysis can give real-time information on ways to improve the existing product portfolio and focus on innovation in newer product offerings.
There is indeed a need to adopt a multi-pronged approach to foster a culture of science and innovation. Young minds are naturally curious and developing this curiosity positively and effectively should be the way forward. Corporate India as well the state needs to expand the horizon and promote scientific thinking in our education system as well. Only then can we create future generations who will be engaged in finding innovative solutions to many more crises that might be lurking around the corner.
—Anand Narasimhan is Managing Director, Merck Specialties. The views expressed are personal
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