Developing a path to Innovation through Collaboration Adrian Percy, Head of Research and Development, Bayer Crop Science Division London October 18, 2017
Moving from closed Innovation towards Innovation Networks/Ecosystems Centralised, Inward Looking Innovation Closed Innovation Externally Focused, Collaborative Innovation Open Innovation Ecosystem Centric, Cross- Organisational Innovation Innovation Networks/ Ecosystems Increasingly, a large industrial company needs to think about itself as a node in a much broader network, and it needs competition not simply about how we build market share but about how we capture innovation share from across a very broad ecosystem. Gary Hamel 1 Page 2 Developing a path to Innovation through Collaboration October 2017
Harnessing external innovation power to solve big challenges Our Open Innovation model universe Strategic alliances Multiple projects Joint labs Shared labs Crowd sourcing Incubators Consortia Joint research Arms lengths Outsourcing Individual projects Licensing Asset transitions Venture Capital investments Page 3 Developing a path to Innovation through Collaboration October 2017
Strategic alliances: Customer focused collaboration to help growers 2014 2015/16 2015/16 2016 2017 Page 4 Developing a path to Innovation through Collaboration October 2017
Strategic alliances: Joining forces with Targenomix for new herbicides and safeners Spin-off of an academic research institution (Max-Planck-Institute) Outstanding expertise in systems biology, including cell biology, genetics, biochemistry, and bioinformatics? Systems Biology approach to discover Modes of Action and novel targets for Weed Control Complementary expertise: strong academic systems biology expertise and crop protection knowhow Novel governance model: Liaison Manager of Bayer on the board of Targenomix Page 5 Developing a path to Innovation through Collaboration October 2017
Strategic alliances: Long-term research partnership with CRDF on Citrus Greening Citrus greening fatal bacterial disease threatening global juice industry Affecting nearly 100% of groves in Florida Reduction in production over last 10 years Other countries: Thailand, Brazil No cure available yet Partnership Goal Develop solutions to enable sustainable citrus production Plant Plant defense modulation Plant/root growth promotion Nutrition management Phytosanitary measures Pathogen Antibacterial Microbes Endophytes Page 6 Developing a path to Innovation through Collaboration October 2017 Source: The American Phytopathological Society; The Penn State College of Agricultural Sciences
Harnessing external innovation power to solve big challenges Our Open Innovation model universe Strategic alliances Multiple projects Joint labs Shared labs Crowd sourcing Incubators Consortia Joint research Arms lengths Outsourcing Individual projects Licensing Asset transitions VC investments Page 7 Developing a path to Innovation through Collaboration October 2017
Crowdsourcing: Utilizing external innovation power through Grants platforms Two years of success > 210 entries, 40 awards for Molecular targets in Technologies for Disease Control Weed Control Pest Control Yield enhancement RNAi-based solutions Increasing genetic diversity Digital platforms providing grants to external innovators Novel molecular targets and Modes of Action for Crop Protection solutions Novel traits for higher yield, quality and safety in crops Page 8 Developing a path to Innovation through Collaboration October 2017
Incubators: CoLaborator to enable early interaction with biotech start-ups Bayer is opening space to exchange ideas in West Sacramento, CA New home for biotech start-ups in the heart of Northern California s Ag Innovation Corridor Bayer Benefits partner with early-stage companies; access to technology Start-up Benefits Resources, facilities and access to Bayer scientists Space available Dec. 1. For more information, please contact geoff.kneen@bayer.com v Page 9 Developing a path to Innovation through Collaboration October 2017
VC investments: Indirect equity investment as source of novel technologies Access to technologies/assets East Coast Flagship Pioneering Anterra Capital AgTech Accelerator West Coast Finistere Ventures Radicle Accelerator Evaluate & Develop INCUBATE Innovative Bio-insecticides ACCELERATE License, Collaborate or Acquire Anterra Capital Trendlines Group New ai class for fungicides More than 2,700 deal flow companies evaluated by Crop Science Page 10 Developing a path to Innovation through Collaboration October 2017 Source: The American Phytopathological Society; The Penn State College of Agricultural Sciences
VC investments: Bayer Life Science Center investing directly in high-risk targets THE AMBITION 10 CHALLENGES To tackle ten fundamental challenges THE APPROACH 5 TECHNOLOGIES Explore the five most promising technologies Humans Cure rare blood disorders Cure monogenic blindness Cell Therapy DNA Editing Cure congenital heart disease Scar-less cardiac healing Humans Retina regeneration Plaque-eating macrophages Animals RNA Inhibition Micro-biome Fast animals vaccines Plants Animals High speed crop breeding Non-toxic Insecticides Soil and root health Plants RNA Activation Page 11 Developing a path to Innovation through Collaboration October 2017
VC investments: Ag-biotech startup a BLSC new company in agriculture New Company agriculture & microbial expertise DEEP KNOWLEDGE & EXPERIENCE IN synthetic biology leadership 50% 50% West Sacramento, CA Cambridge, MA Page 12 Developing a path to Innovation through Collaboration October 2017
Our approach to open innovation has evolved from managing Page 13 individual partnerships to being an integral part of a complex ecosystem Internal R&D Universities & Research Institutes Ecosystem focused crossorganizational innovation Open Innovation 2.0 Venture Capital Customer sponsored research Crowdsourcing Grants4Targets TM Grants4Traits TM Innovation Hub, East coast Hackathon BLSC Project CATalyst CoLaborator, West Coast Page 13 Developing a path to Innovation through Collaboration October 2017 Adjacencies
THANK YOU! For more information: Visit bayercropscience.com Follow us: @Bayer4crops Or follow me: @adrianpercy2 Page 14 Ag Innovation Showcase August September 2017 2017