Nesta Ogunmuyiwa Nicole Bartley Charles Adeyanju
Hyderabad Cluster Introduction Hyderabad constitutes the fifth largest metropolitan city of India. Also the capital of southern state Andhra Pradesh, the city forms a popular tourist destination in India. Hyderabad has fast emerged as the biotech hub of India. The government of Andhra Pradesh has christened the city 'Genome Valley.' The state government once boosted that Genome Valley is our answer to the Silicon Valley of Bangalore. It is making waves not just in India, but across the world.
Level of Cluster This is a more of an engineered city cluster nick name Genome Valley. Mission: To be the focal point of technological innovation for knowledge based biotechnology enterprise.
Biotech Infrastructure Shapoorji Pallonji Biotech Park: The Rs 100 crore (Rs 1 billion) project is spread over 400 acres. It provides state-of-the art infrastructure with support facilities like instrumentation facilities, incinerator, secondary effluent treatment plant, distilled, deionised DM water, cold storage and water housing facility, and animal house. ICICI Knowledge Park: It is a world-class centre for leading-edge, business-driven research in the country. The Park is also India's first knowledge network for collaboration between research. It is a 200-acre campus with world-class infrastructure and support facilities. It is promoted by the ICICI Group. Biotechnology Incubation Centre: It runs research and development laboratories, multi-utility plant, specialized pilot plant and an analytical and quality control center. Agri -Business Incubator of ICRISAT: The Agri-Business Incubator provides business support to existing and new agri-business, developed and housed at ICRISAT. The incubator helps in reducing the risk in commercialization of agri-technologies
Key Stakeholders & Role Played The government of Andhra Pradesh Biotechnology institutions and private pharma companies such as Indian Institute of Chemical Technology, Centre for Cellular and Molecular Biology, National Institute for Nutrition, and Centre for DNA Fingerprinting and Diagnostics. Top private biotech companies include: Avra Laboratories, Bharat Biotech International, Bijam Biosciences, Biological E. Ltd, Bioserve Biotechnologies, Dr Reddy's Laboratories, Genotex International, GVK Bio, Indian Immunologicals Ltd, Indigene Pharmaceuticals, Jupiter Biosciences, Krebs Biochemicals, Microbiomed Products, Nuziveedu Seeds, Prabhat Agri Biotech, Satyam Computer Services, Shantha Biotechnics, Tata Consultancy Services and Vimta Labs
Local Innovative Capacity India has more than three million scientific and technical manpower. India has over 0.6 million science and technology post graduates. India has some 700,000 graduate engineers; the country gives over 3,500 doctorates in sciences every year. After the United States, India is home to the largest pool of English-speaking scientific manpower. In economics, the most crucial resource is the human resource. Intelligent human resources the last word in wealth creation, and its first requirement and India has it all. Complementing the hard-working nature of its people and their knowledge of English language, the State has several institutes of excellence to produce world-class professionals. It has more than 50 prestigious Central and State research and training establishments
Government Input to Biotechnology Growth. The government launched India's first biotech venture fund with a corpus of $30 million. It was a joint venture between the Andhra Pradesh Investment Development Corporation and Dynam Venture East of the US. The venture fund began to finance start-up biotech companies. It has built a network with R&D centers of excellence, universities, academic institutions and agriculturalrelated incubators and incubates globally.
Government Input to Biotechnology Growth. The government has allotted 100 acres of land for the facility, which will come up at a cost of Rs.1 billion ($22 million) near ICICI Knowledge Park Reduced sales tax to 1% for next 7 years Land cost rebate for jobs created in bio-informatics Waiver of stamp duty and registration on lands& buildings Collaboration with Universities Dedicated Township for employees of Genome Valley including residential units, recreation facilities, library, super markets Establishment of Venture Capital Fund
Role of key Institutions to Sustain Clusters Government facilitate the development of biotechnology by creating the required infrastructure through specialized Biotech Parks and also collaborating with pharmaceutical firms to make this possible. Collaborative & cooperative stance that promotes healthy competition
Potential Earnings Pharmaceutical India is expected to grow from $5.5 bn to $25 bn by 2010 and $75 bn by 2020 - Hyderabad, presently accounts for about one third of India s total bulk drug production and is considered as the bulk drug capital of the country. - A large number of bulk drug units are located in and around Hyderabad with good infrastructure and trained manpower. - Earnings from complementaries has contributed to increase in per capita income from Rs 17932 in 2002 to Rs 25526 in 2006.
Milestones International Finance Corporation (IFC), an arm of World Bank, will be investing $4 million in APIDC Venture Capital Ltd (APIDC-VCL), a joint venture between Ventureast and AP Industrial Development Corporation (APIDC) Launch of Jencevac, April, 2005 : Orchid Chemicals and Pharmaceuticals, which is heavily skewed towards production of cephalosporins (anti-bacterial), has identified lifestyle drugs as its thrust area post-2007 Collaborative agreement signed with Iowa, June 2003 Ocimum Biosolutions acquires German company Aurobindo Pharma Ltd. receives approval from USFDA to manufacture Active Pharmaceutical Intermediates (APIs) for the US market Umbilical Cord Stem Cell Bank, Bio-medical Research Centre & Stateof-the art Maternity/ Neo-natal Hospital to be set up by the Pacific Health Care Holdings, Singapore The Bill & Melinda Gates Foundation to Provide grant of US $ 6.4 million to Bharat Biotech
Conclusion A strong role by the government in providing incentives and removing obstacles for foreign firms and institutional to setup in the region It is ultimately the quality of the human capital that determines the growth of any cluster and this region is never short of it. Advantages are not going to be of much help the government have to invest in the creation of high quality tertiary educational institutions. To create an any kind cluster, first a positive image of the location needs to be created and this has to be followed by the creation of new or strengthening of the existing locational advantages.