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1、 Building Norways Life Science Industry Recognizing strengths,confronting challenges,acting on opportunitiesBOSTON CONSULTING GROUP FEBRUARY 2023Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities.BC
2、G was the pioneer in business strategy when it was founded in 1963.Today,we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholdersempowering organizations to grow,build sustainable competitive advantage,and drive positive societal impact.Our diverse,glo
3、bal teams bring deep industry and functional expertise and a range of perspectives that question the status quo and spark change.BCG delivers solutions through leading-edge management consulting,technology and design,and corporate and digital ventures.We work in a uniquely collaborative model across
4、 the firm and throughout all levels of the client organization,fueled by the goal of helping our clients thrive and enabling them to make the world a better place.Contents04 Preface05 Definitions And Abbreviatvions 06 Executive Summary09 Methodology12 A Strong Health System Beckons A Strong Life Sci
5、ence Industry20 Recent Developments Create Opportunities24 Existing Strengths;Significant Challenges;Real Opportunities38 Five Long-Term Priorities To Strengthen The Sector44 The Journey Ahead48 Appendix:Call To Action For Different Stakeholders50 Authors4 BUILDING NORWAYS LIFE SCIENCE INDUSTRYPrefa
6、ceThe Norwegian health system is a major asset to the coun-try.No matter where you live,what kind of education you have,what you earn,or which connections you have,in Norway you are entitled to world-class care.The system is based on the principles of universal health coverage com-bined with the key
7、 fundamentals of the Nordic welfare state model,among them an elaborate social safety net,free public services including education,and a high degree of social mobility.From a patient perspective,the Norwegian health system is very good.The majority of health research is focused on improving patient
8、care,and not necessarily with an aim to develop products for commercialization.Outside the public health system,however,the health and life science indus-try currently has a very limited footprint,for reasons that we will explore in this paper.With that said,the deeply rooted universal access princi
9、ple and well-developed sys-tem could make the country attractive to companies that want to explore integration with public systems.For this and other reasons this paper will explore,Norway is poised to act on a range of exciting opportunities to develop the life science industry within its borders.T
10、he industry encompasses products and services concerned with human health,including biopharma,medical technol-ogy(medtech),and digital health technology,known as“helsenringen”in Norwegian.By utilizing its existing strengths in many areas to confront challenges in a strate-gic manner,Norway can reali
11、ze its considerable potential to attract international capital and talent while enjoying economic and labor benefits.The life science industry presents numerous attractive features,and Norway can harvest economic and business value by directing smart efforts to boost the sector.This paper explores N
12、orways strengths and challenges in the context of the life science industry,strengths and chal-lenges that combine to present a range of opportunities.Informed by expert insights and opinions from across the life science and health care sectors,our report paints a compelling picture of possibilities
13、 for this Nordic country.Furthermore,we have identified key priorities to help Norways political and business leaders optimize its life science development journey.With the right investment,political will,and strategic efforts,Norway can embrace the life science industry and accelerate its developme
14、nt.In parallel with its advanced and excellent national health service,a next-level domestic life science presence could provide remarkable benefits both to Norway and the rest of the world.BOSTON CONSULTING GROUP 5Definitions and AbbreviationsAI=artificial intelligenceBCG=Boston Consulting GroupEBI
15、TDA=earnings before interest,taxes,depreciation,and amortizationa widely used measure of profitability FTE=full-time employeeGDP=gross domestic productHOD=Norwegian Ministry of Health and Care Services(Helse-og omsorgsdepartementet)IFE=Institute for Energy Technology(Institutt for energiteknikk)LMI=
16、Association of the Pharmaceutical Industry in Nor-way(Legemiddelindustrien)MoE=Ministry of Education(general)MoH=Ministry of Health(general)MoT=Ministry of Trade(general)NHS=National Health System(United Kingdom)NTNU=Norwegian University of Science and Technology(Norges teknisk-naturvitenskapelige u
17、niversitet)OCC=Oslo Cancer ClusterOUS=Oslo University Hospital(Oslo Universitetssykehus)R&D=research and developmentRHF=regional health authority(regionale helseforetak)RCN=The Research Council of NorwaySINTEF=Foundation for Industrial and Technical Research(Stiftelsen for Industriell og Teknisk For
18、skning)SME=small-and medium-size enterpriseTSR=total shareholder returnTTO=technology transfer organizationUiO=University of Oslo(Universitetet i Oslo)VC=venture capital6 BUILDING NORWAYS LIFE SCIENCE INDUSTRYExecutive SummaryNorways national health care system provides excellent universal health ca
19、re services to its populace.The develop-ment of the life science industry can uplift this existing system in powerful ways,supporting the well-being of Norwegian citizens while also offering a range of economic benefits.With this solid foundation in place,the country is poised to develop its life sc
20、ience industry,which encom-passes products and services concerned with human health,including biopharma,medical technology(med-tech),and digital health technologybut not including health and care services,such as private hospitals or care homes.Building a stronger health and life science industry is
21、 a key political goal in Norway,and may offer significant benefits for the economy,for patients,and for the health system as a whole.From an economic perspective,development of the health and life science sector can be among the solutions that facilitate the demanding transformation that the Norwe-g
22、ian economy is undergoing.Life sciences is an attractive industry,with high potential for value creation,exports,and enticing,high-paying jobs.It can contribute to diversifying the Norwegian economy.Moreover,it is marked by its resiliencea valuable feature,the importance of which has been underscore
23、d by recent global disruptions.The benefits to patients include access to innovative ser-vices and treatments that support good health,longer life expectancy,and fuller participation in the labor force.As for the health system,a well-developed life science indus-try can improve the quality and effic
24、iency of health care delivery through access to new treatments,additional competencies,and more resources.The Covid-19 pandemic has demonstrated the importance of close collaboration between the different stakeholders in the health and life sci-ence sector.Ingvild Kjerkol,Minister of Health and Care
25、 Services(Labour Party)BOSTON CONSULTING GROUP 7However,life sciences is a global and highly competitive industry.Because Norways starting point is relatively small,significant efforts will be required to compete.Com-petition is strong,and several countries are investing heavi-ly to establish a posi
26、tion.The Norwegian footprint is,by comparison,limited in size.Norway does,however,have key strengths it can build on.First,it boasts one of the best health systems in the world,both in terms of health out-comes and access to care.Second,it features high-quality health data sources.Third,there are ni
27、ches of high-quality research.Finallyand significantlyit has a highly educat-ed population.These strengths can help Norway overcome the numerous challenges that lie before it in terms of developing its domestic life science industry.First,while Norway has niches of high-quality research supported by
28、 high levels of public funding,the return on research in terms of patents and companies is low com-pared with the other countries in our study.Thus,despite a strong R&D foundation,commercialization has not reached its full potential due to the limited presence of established industry companies with
29、a global presence.Second,access to risk capital and private funding is limit-ed.Another challenge lies with scaling companies,particu-larly due to a lack of infrastructure,risk capital,and talent with relevant industry and commercial experience.Again,this is at least partly explained by the limited
30、presence of global technology and pharmaceutical companies that can contribute industrial and commercial capabilities,infra-structure,and funding to the ecosystem.Finally,a set of cultural barriersparticularly between public and private stakeholderscombine to present other challenges.There is limite
31、d understanding among the populace of the need to commercialize health contexts in a manner that will lead to profitability;as such,there is limited dialogueand,to some degree,mistrust be-tween public and private parties.This is remarkable con-sidering Norways strong public-private collaboration in
32、other sectors.These conditions combine to set the stage for remarkable opportunity,both for Norway and for life science industry players.As much as the country stands to realize its own benefits from a robust life science industry,Norway could,by putting the right foundation and frameworks in place,
33、create a very fertile ground for international companies as well.By contributing business and industry skills,Norway can in the future drive commercialization of basic research and realize the value proposition of growth in an advanced,highly educated country.We have identified five key priorities t
34、o support the devel-opment of the life science industry in Norway:1.Define ambition for Norways position in life scienes.The country should set a clear national ambition with regard to how the life science industry can support the health system,and establish a national life science strategy with con
35、crete initiatives and attached funding to prioritize and attract investments to the sector.Likewise,it should facilitate increased ownership of and interest in the life science industry at the political level.2.Prioritize areas where Norway already excels or needs to close gaps.We believe Norway sho
36、uld prioritize therapeutic areas and particular steps in the value chain where the country can excel.Therapeutic areas can be selected based on where Norway has(or could develop)a sustainable advantage;alternatively,they can be chosen based on new fields of research where Norway can invest to kick-s
37、tart development.Demand from the health system should also be analyzed to guide prioritization.As for the value chain,focus should lie with closing gaps such as the pre-clinical development phase and the scaling of compa-nies.Leaders should steer funding and mandates of public investment arms to com
38、pensate for market failures,while expanding the total funding pool for R&D from internation-al and industry sources.Finally,in the academic sector,university curricula should be revised in line with the needs of the life science industry and health system.3.Establish Norway as a global leader for he
39、alth data access and usage.Norway should clarify its national priorities to improve health data access and use.It should adjust associated roles and responsibilities of the public institutions involved in developing infrastructure for access to health data,and focus on increasing the involvement of
40、stakeholders such as private companies and health care professionals.It should clarify and provide guidelines for its interpretation of GDPR/data privacy guidelines for the use of health data.Finally,together with academia and industry,it should build and communi-cate success stories for public-priv
41、ate collaborations on health data.4.Make Norway a friendly environment to attract international capabilities.The country should make efforts to adjust incentives and streamline processes in order to attract international talent and expats.Likewise,it should aim to streamline processes for ethical ap
42、proval,clinical trial application,etc.Establishing professional networks and cross-industry forums can support compa-nies and talent development alike.5.Break cultural barriers and encourage public-pri-vate collaboration.Through dedicated initiatives and incentives,Norway should work to facilitate p
43、ublic-private cross-collaboration.It should revise the public procure-ment framework to build an attractive home market and collaborations,and establish shared infrastructure to accelerate multidisciplinary research and innovation.8 BUILDING NORWAYS LIFE SCIENCE INDUSTRYRealizing Norways full potent
44、ial in the life science arena will depend on multiple stakeholders taking ownership and responsibility for the total effort.This means that govern-ment offices,public institutions,companies,and investors alike will need to take on their share of the work.These efforts are multifaceted and myriad;the
45、y range from work in legislative,funding,and regulatory contexts to the revision of university curricula;from developing industry incentives to building digital capabilities;from establishing cross-industry forums to pursuing international investment partnerships.“Some sectors need an additional pus
46、h,where the state can act as a cheerleader and provide policies that enable public and private stakeholders to act as one team.I would say the life science sector is a highly relevant candidate for such a push.”Jan Christian Vestre,Minister of Trade and Industry (Labour Party)Norway should be clear-
47、eyed about the reality of this en-deavor.Because of the nations small existing footprint relative to global peers,realizing the full potential of a robust domestic life science industry will take a long time.It will take years to build the footprint required to achieve benefits commensurate with the
48、 necessary investment and efforts.Given that other countries are significantly further ahead,it is unlikely that Norway will be in a posi-tion to directly compete for the foreseeable future.However,this does not mean that the country should not act now to strengthen the industry and generate benefit
49、s.Indeed,there are numerous reasons why we believe it is in Norways interest to make efforts to build a health and life science industry.Opportunities to create tangible short-term benefits,such as accelerated exports,is just one such example.With a coordinated effort,an ambition of increas-ing life
50、 science exports to approach current levels of sea-food export(100 BNOK in 2021)should be within reach.The opportunity to accelerate the industry based on health data is another.Importantly,in addition to strengthen Norways international position in life sciences,focus should remain on building an i
51、ndustry that can reinforce and contribute to further develop the outstanding health system the country already has.“As we build the health industry in Norway,we must also build an industry that reinforces the strong health system we already havewith equal access for everyoneand at the same time help
52、s to solve some of the major challenges the system has.How can the life science industry help solve these major tasks?”Erna Solberg,Member of Parliament and former Prime Minister(Conservative Party)Define LS1 ambition and strategy Facilitate increased ownership of and interest in the life science in
53、dustry at the political level Increase transparency of how funding is being spent Steer mandates of public invest.arms to compensate for market failures+enable Nordic mandates Develop tailored funding mech.Revise national e-health priorities Revise R&R2 of public stakeholders Strengthen procurement
54、function in municipalities and RHFs Focus on SH3 mgmt.+incentives Introduce fast-track process to attract international talent Streamline approval processes for ethics,clinical trials,etc.Promote LS industry Invest in joint infrastructure Adjust procurement policies to create an attractive home mark
55、et Adopt VBHC5 funding principles to facilitate multi-disc.collaboration Build culture for collaboration Invite private collaborators to share data,facilities,and infrastr.Educate partners and promote innovative procurement policies Invite public collaborators and share data,facilities,and infrastr.
56、Build trust;focus on openness,accountability,and rigor6 Set up joint training programs7 Seek opportunities to co-invest with public investment arms and institutes Collaborate with Nordic countries to attract talent and funding Showcase capabilities/R&D in international and industry arenas(advisory b
57、oards,collaborations)Establish cross-industry fora and professional LS networks Prioritize investors w/capabilities Participate in intl mentorship programs and key events Build networks of international investors Work systematically to attract international expertise on company BoD and advisory boar
58、ds Revise interpretation of GDPR/data privacy regulation Integrate data collection for research in clinical practice Invest in digital capabilities and collaborate;share data/expertise Suggest public health data UCs4 Work with public inst.to develop/communicate successful UCs Revise university curri
59、culums Adjust TTO incentives Review funding allocation criteria Review regulations,e.g.,genetics Increase focus on intl and industry collaboration to expand R&D fund.Work with health system to identify needs+design solutions Ensure commercial mindset early Share learnings and insights on what intl p
60、eers are doing Make funding available for longer-term,higher-risk investments Actively search for opportunities to co-invest with public funds On a political level,strengthen knowledge and communication about benefits for society,patients,and business Clearly communicate to gov.which initatives are
61、needed to support the industry(beyond need for funding)Educate companies and government on what investors are looking for1.Life Sciences;2.Roles and responsibilities;3.Stakeholder;4.Use cases;5.Value-based health care;6.Scientific/ethical rigor;7.For HCPs and academic researchers.Define ambition for
62、 Norways position in life sciences Prioritize areas where Norway excels or needsto close gapsMake Norwaya friendly environmentto attract intl capabilitiesBreak cultural barriers and encourage public-private collaborationEstablish Norway as a global leader for health dataPriorityGovernmentHealth/acad
63、emiaCompaniesInvestorsConcrete actions to be taken by stakeholders to achieve the five priorities for Norwegian life sciencesBOSTON CONSULTING GROUP 9MethodologyThis report is based on data collected from interviews as well as reviews and analyses of publications,patents,startups,and venture investm
64、ents.Likewise,it is informed by insights gained from analysis of more than 40 interviews with key stakeholders within the health and life science sector,both in Norway and abroad.The perspectives represent a range of industry contexts,includ-ing biopharma and medtech.Interviewees include repre-senta
65、tives from academia,hospitals and health authorities,Norwegian life science companies,international life sci-ence companies,investors,and Boston Consulting Group(BCG)experts in relevant markets across Denmark,Swe-den,the UK,Switzerland,and Belgium.Interviews covered all dimensions required to grow l
66、ife science companies,summarized in the figure below,which included both biopharma and medtech.Findings were supplemented and backed up with data and analyses from a wide range of sources.10 BUILDING NORWAYS LIFE SCIENCE INDUSTRYPaacs InvestBCG experts(alphabetical by country)Interviewees(alphabetic
67、al by affiliation)Tarje BjrgumSibel AarnesLotte SkolemIngvild KjerkolJan Christian VestreAnna-Lena EngwallJan Brge JacobsenChrister KjosOle Jesper DahlbergMartin Petter FredriksenMariann HornnesCathrine ThomassenEvy StavikIngrid Teigland AkayTerje RootweltCathrine LofthusChrister MjaasetGert W.Munth
68、eAnne LindboeErlend Svardal BeErna SolbergHanne Mette Dyrlie KristensenMonica Larsen Christian Fredrik StrayVeronika BarrabesAndre BregrdGunnar BovimMichael EngsigJonas EinarssonKetil WiderbergBjrn Atle BjrnbethMarkus MoeMasha StrmmeMartin HaswellLars Henrik MarieroAlexandra Bech GjrvFrode Strisland
69、Hvard SlettaMorten DalsmoJan Terje AndersenPer Morten SandsetSvein StlenCarl Henrik GrbitzAudun TornesAlfred BjrloUlrik SchulzeJens GruegerBen HornerKjetil HolgeidStefan LarssonMarcus TorelmJonas GeerinckTom Brijs Anders FaesteAndrew RodriguezMethod:Findings based on input from 40+external interview
70、s and BCG expertsBOSTON CONSULTING GROUP 11Stem cells iPS;neuronal;VEGF Wound healing Stem cell transplantation Tumor targeting1Gene editing&antisense CRISPR,siRNA,ribozymes Antisense nucleotides Nucleases,transcription regulators Nanoparticles for delivery mRNA/vaccine technology3Acoustic wave medt
71、ech Hearing aids and sensors Neuro-stimulation treatment Ultrasound imaging Implant devices9Diabetes,metabolic syndromes,CVD Peptide conjugates,mimetics Antidiabetic,obesity CVD,hypertension,LDL Dyslipidemia,ischemic conditions4Oncology/Cancer therapeutics Chemotherapeutics CAR-T,MHC targeting Recom
72、binant proteins,antibodies Diagnostic devices Radiopharmaceuticals2Antibody development Chimeric and humanized antibodies Bispecific antibodies Fusion proteins Immune response modulation 5Neuroscience Neuropathic pain therapeutics Compounds blocking voltage,Na channels Schizophrenia,CNS7Rhinitis&res
73、piratory Peptides,polypeptides,antibodies Small molecules New compositions6Vital signs&health monitoring Smart wearables Diagnostic tools with analytics Patient data analysis Drug delivery devices8Catheter&stent medtech Cardiac valve prosthesis,Clot retrieval,guidewire Drainage catheter Implantable
74、systems10Top 7 therapeutic topicsDigital health topicTop 2 medical device topicsNote:Subtopics created from 77k life science patents in North Europe extracted from Derwent Innovation.Source:BCG Center for Innovation AnalyticsAnalysis of publications,patents,startups,and ven-ture investmentsAdvanced
75、data analytics capabilities were used to derive insights using multiple innovation lenses such as startup activity/VC investments,patents,and scientific literature.Best-in-class databases and tools were used,including Capital IQ,Crunchbase,PatentSight,and Web of Science.Ten prominent life science ar
76、eas were initially identified for the study by applying natural language processing(NLP-method)based on the most relevant and prevalent keywords for patents and publications in the Nordics.These 10 areas are summarized in the figure above,and include seven therapeutic topics,two medical device top-i
77、cs,and one digital health topic.We created comprehensive keyword-based search strategi es to identify emerging trends in the countries and regions of interest across the ten areas of interest.Each company was mapped to a country using its headquarters,whereas the patents and publications were tagged
78、 based on the assignee/author addresses.Strengths and weaknesses of this reportThis report was written in anticipation of the Norway Life Science Conference,held in Oslo in February 2023,for which Boston Consulting Group is an industry partner.The views herein represent the authors own perspectives
79、and findings,and the report was prepared pro bono.The reports strengths are rooted in BCGs values,high integrity,and breadth of knowledge and insights.BCG was invited based on these qualities,and has had full freedom with regard to analyses and conclusions.Another strength draws from the broad and r
80、epresentative selection of interviewees,including those with deep expertise in health and life sciences,as well as those with perspectives from a range of countries and industries.Finally,the report fea-tures a holistic scope,spanning the full value chain and a broad set of enablers.Potential weakne
81、sses of the report exist insofar as the analyses were based on outside views.Also,several topics could benefit from further investigation,such as the identi-fication of criteria to prioritize areas to build on.The inter-views are slightly limited in terms of user perspective,with the main focus plac
82、ed on decision makers.Overall,we consider the methodology to be appropriate for the scope and purpose of this report,which was to offer holistic insights into the strengths,challenges,and oppor-tunities that comprise the current life science industry landscape in Norway.Result:10 key topics identifi
83、ed across the Nordic innovation landscape as basis to assess publications,patents,startups,and venture investments12 BUILDING NORWAYS LIFE SCIENCE INDUSTRYA Strong Health System Beckons a Strong Life Science IndustryThe Norwegian health system is a remarkable area of strength.It is recognized global
84、ly,and thus holds an appropriate place as a point of national pride for the country.The system ranks very high in international com-parisons:Norway ranked#1 in the Commonwealth Funds“Mirror,Mirror 2021”report with particularly notable place-ments in administrative efficiency(#1),health care out-come
85、s(#2),and access to care(#2).1 Evidence of the sys-tems efficacy abounds.For example,Norway has one of the lowest rates of death from treatable causes in Europe,and high cancer survival rates.Standardized patient care pathways help reduce geographical variation in care quality.Rates of preventable d
86、eath are also low,reflecting strong primary care and relatively healthy lifestyles.2This publicly funded system,and the investment it re-quires,reflects the high priority the Norwegian state places on the welfare of its populace.Total health care spend in Norway is 418 BNOK.Per capita spending on he
87、alth in Norway(77,244 NOK in 2019)has remained among the highest in Europe for a decade,although health spending as a share of GDP(10.1%)is only slightly above the EU average.The share of public spending is also the highest in Europe,at 86%in 2019.3The Norwegian health system invests significant res
88、ources into research in pursuit of better health services and out-comes.Total research spend in 2019 came to 4.35 BNOK,with 2.9%of the systems operating expenses going toward research.As of 2019,3,230 full-time-employees(FTE)were committed to research.Six university hospitals account for the majorit
89、y of this research,nearly 3.5 BNOK and 2,542 research FTE.In 2021,spending on R&D in health in-creased to about 6 BNOK.4BOSTON CONSULTING GROUP 13Such a strong system leaves no doubt that for Norway,health care and the life sciences that support it are major priorities.But where the health care syst
90、em is enviable for its strength,the domestic life science industry has only realized a small fraction of its potentialmeaning oppor-tunity is abundant.The life science industry encompasses a broad range of products and services concerned with human health,including biopharma and medical technolo-gy(
91、medtech).A robust life science industry is a powerful asset for any country,insofar as it features several attrac-tive qualities in comparison with other industries,including high growth,significant value creation,and considerable resilience.Norway in particular has an immense opportu-nity to grow t
92、his industry,using the foundation of its excel-lent national health system to support the development of the sector.A robust life science industry may be the answer to multiple challenges Norway faces:the need to diversify the economy,to boost R&D and create knowledge-intensive workplaces outside oi
93、l and gas,and to improve health outcomes and thereby maintain the resilience of a strong health and wel-fare system as the population grows and ages.Life sciences:an attractive industryFundamentally,the life science industry is appealing be-cause it supports Norways demonstrated commitment to advanc
94、ed health care.Beyond this,however,the life sci-ence industry is attractive for several other reasons,not least of which is the revenue growth prospect.Consider that in Scandinavia,the life science sector outperforms others,with a revenue growth of+13%per year compared with a+8%average for other sec
95、tors.Correspondingly,it boasts high margins,with 30%40%EBITDA,whereas other sectors average 15%25%.5 Looking more broadly,life sciences is among the sectors with the highest value cre-ation,with total shareholder returns(TSR)of 15%25%compared with a median 12.5%across other sectors.6(See Figure 1.)1
96、.Eric C.Schneider et al.,“Mirror,Mirror 2021:Reflecting Poorly,”The Commonwealth Fund,August 4,2021,https:/monwealthfund.org/publications/fund-reports/2021/aug/mirror-mirror-2021-reflecting-poorly.2.“Norway:Country Health Profile 2021,”OECD,December 13,2021,https:/www.oecd.org/health/Norway-country-
97、health-profile-2021-6871e6c4-en.htm.3.Ibid.4.Ole Wiig and Bjrn Magne Olsen,“Ressursbruk til forskning i helseforetakene i 2019,”NIFU,August 2020,https:/nifu.brage.unit.no/nifu-xmlui/bitstream/handle/11250/2685369/NIFUrapport2020-16.pdf5.S&P Capital IQ,BCG Value Science,OSL/CPH/STO Nordic companies,2
98、0172022.6.S&P Capital IQ,BCG Value Science,20172021.14 BUILDING NORWAYS LIFE SCIENCE INDUSTRYFigure 1.Life sciences represent an attractive industry with high growth and value creation vs.other industriesLife sciences in Scandinavia with larger growth than other sectors Globally,life sciences is one
99、 of the highest value creating sectors1.Earnings before interest,taxes,depreciation,amortization;2.2022 numbers based on extrapolation of Q1Q3 using average weight of Q4 from 2017 to 2021;3.Total shareholder return;Note:Health care service providers excluded from revenue and EBITDA numbers;Source:S&
100、P Capital IQ;Refinitiv;BCG Value Creators database;BCG ValueScience Center as of October 31,2022;Nordic companies from the OMX Nordic Exchange Copenhagen(CPSE),Oslo Bors(OB),OMX Nordic Exchange Stockholm(OM).Nordic health care includes companies in health care,biotech,and pharma industriesScandinavi
101、an health careScandinavian othersRevenue 20172022E1,indexed at 20175-year annual average TSR3 20172021CAGR 2017-2022E2.00.020020201920181.013%8%as well as higher average EBITDA1 marginsEBITDA margin 20172022E2 3923Total Median:12.5%402002002020Mid-Cap PharmaLarge-Cap
102、 PharmaHealth Care ServicesGreen EnergyMedical TechnologyTechnologyReal EstateOilTravel&TourismAutomotive OEMsComms.ServicesBanksSectors non exhaustiveBOSTON CONSULTING GROUP 15Figure 2.The life science industry is highly resilientA global market means high value and high competitionThe market for t
103、he life science industry is truly global,which is a double-edged sword.While it presents broad demand and high value potential from investment,it also means that there is significant international competition.With a growing and aging global population,there is no shortage of need for novel,innovativ
104、e health care treat-ments,which delivers a very real opportunity for the indus-try to generate value.That said,the sector is also one that requires substantial financial investment and plenty of patience.Health sci-ence innovation tends to be a long game:there are long timelines for identification,d
105、evelopment,testing,and marketing of new medical devices and treatments,typical-ly stretching many years.In medtech,the span is typically 3 to 7 years,but in pharma,it can take 12 to 15 years for pre-clinical development,clinical trials,and market approv-al(from the point of patent approval).Moreover
106、,only one or two of every 10,000 substances synthesized in laborato-ries will successfully pass all stages of development to reach the market.And,of course,even with all that invest-ment(financial and time),there is the possibility that new treatments will not succeed in the market.7These challenges
107、 should not dissuade investment in life sciences.Indeed,several countries are committing notable investments to building their domestic life science foot-prints,including Norway.Consider that 2021 gross domes-tic expenditure on R&D for health was 417 BNOK($49B USD)in the United States,30 BNOK(2B)in
108、the UK,and 29 BNOK(3B)in Germany.While Norways 6 BNOK(excluding higher education)appears relatively low,8 it is actually higher per capita given the countrys smaller population.7.Gail A.Van Norman,“Drugs,Devices,and the FDA:Part 2,”JACC:Basic to Translational Science 1,no.4(June 2016):277287,https:/
109、doi.org/10.1016/j.jacbts.2016.03.009.8.Eurostat,“GBARD by Socioeconomic Objectives(NABS 2007),”last updated April 10,2022,https:/ec.europa.eu/eurostat/databrowser/view/GBA_NABSFIN07_custom_4630178/default/table?lang=en.A look at the relative stability of the life science industry across various peri
110、ods and throughout various forms of disruption reveals its inherent resilience.Consider that through both the oil crisis of 2015 and the pandemic in 2020,key life science companies maintained steady perfor-mance.This contributes to strong,stable gross domestic product(GDP)during such times of instab
111、ility,as exempli-fied by Switzerland.(See Figure 2.)Switzerland as example of strong and stable GDP due to life sciencesSource:Trademap;Economist Intelligence;Eikon;S&P Capital IQ.Swiss GDPNorwegian GDPGlobal avg.oil priceRocheNovo NordiskNovartisAstraZenecaGlobal avg.oil priceSwiss and Norwegian GD
112、P,Swiss life science export(indexed at 2017)2.31.91.31.00.7Key life science companies have kept steady performance during economic turmoilAvg.annual oil price and company share price(indexed at 2014)1.01.40.5200161.01.00.90.71.11.00.70.90.70.5200161.0Oil crisisOil crisisCOVID-1
113、9COVID-1942%of Swiss exports(2021)16 BUILDING NORWAYS LIFE SCIENCE INDUSTRYInvestment in growth aside,there is notable economic value generated in the forms of job and export income that can be derived from well-established life science hubs.Europe alone presents a number of examples to consider:Uni
114、ted Kingdom:The UK has a leading position in venture capital(VC)in Europe,with private investments in life science companies amounting to 9,693 MEUR from 2017 to 2021(compared with 191 MEUR in Norway during the same period).Its life science industry repre-sented 8%of total exports in 2021.9 Switzerl
115、and:The life science industry represents Switzer-lands largest export group,accounting for 42%of total exports in 2021.10 Belgium:The Belgian life science ecosystem counts 23 pharma headquarters,37 production sites,12 universi-ties and research centers,7 academic hospitals,and 14 bio-incubators.The
116、countrys life science industry repre-sented 29%of total exports in 2021.11 Denmark:The Danish life science industry grew by 163%from 2008 to 2019(more than 9%per year)and rep-resents Denmarks largest export group,approximating 19%of total exports in 2019.12,13 Sweden:The Swedish life science industr
117、y represents Swedens second largest export group(after cars),ap-proximating 7%of total exports in 2018.14 When it comes to private investment in life science compa-nies,the United States is the global leader.Consider the city area of Boston alone,where VC investments in the sector were equal to 48,2
118、94 MEUR from 2017 to 2021.15Asia has also emerged as a competing player in the life science sector,with China taking 9.4%of the global phar-maceutical market and experiencing an annual growth rate of 12.9%in pharmaceutical R&D expenditure over the four-year period from 2017 to 2021.This is substanti
119、ally higher than that seen in Europe(3%)or the United States(8.5%).16By comparison,in the global context the life science indus-try currently has only a small footprint in Norway.In 2021,exports of pharmaceuticals and medical technologies amounted to 27.2 BNOK,of which 17.9 BNOK were phar-maceutical
120、s and 7.8 BNOK medtech equipment.17 While this absolute amount is small relative to exports of Nordic and global peers,it accounts for 5%of Norwegian main-land exports(excluding oil and gas).This is behind leading sectors like seafood(116.6 BNOK,accounting for 21%of mainland exports)and metals(87 BN
121、OK,16%),but ahead of electricity(20.2 BNOK,3.7%).18 The amount of Norwegian life science exports is also increasing,with a growth of 60%across the ten-year period from 2010 to 2020.199.BCGs Center for Growth&Innovation Analytics,2023.“Life Science Competitiveness Indicators 2022,”Gov.uk,July 21,2022
122、,https:/www.gov.uk/government/publications/life-science-sector-data-2022/life-science-competitiveness-indicators-2022.10.Jan Lucht,“Export Statistics:The Life Sciences Sector as a Central Pillar of the Swiss Economy,”Swiss Biotech,May 2,2022,https:/www.swissbiotech.org/listing/biotech-report-2022-ex
123、port-statistics.11.“Belgium,Leading the Way in Clinical Trials,”Pharma.be,accessed January 30,2023,https:/pharma.be/sites/default/files/2021-09/brochure_clinical_trials.pdf.12.“Life Science Industrys Economic Footprint,”Danish Ministry of Industry,Business,and Financial Affairs,January 2021,https:/e
124、m.dk/media/14234/det-oekonomiske-fodaftryk-af-life-science-engelsk-version_final.pdf.13.“Agreement on a Strategy for Life Science,”Danish Ministry of Industry,Business,and Financial Affairs,May 2021,https:/em.dk/media/14236/agreement-on-a-strategy-for-life-science.pdf.14.“Swedens National Life Scien
125、ces Strategy,”Swedish Ministry of Enterprise and Innovation,accessed January 30,2023,https:/www.government.se/4abc0d/contentassets/a8cdfafc39444985973d729ecb95ed63/swedens-national-life-sciences-strategy.pdf.15.BCGs Center for Growth&Innovation Analytics,2023.16.“The Pharmaceutical Industry in Figur
126、es,”EFPIA,2022,https:/www.efpia.eu/media/637143/the-pharmaceutical-industry-in-figures-2022.pdf.17.“Helsenringens verdi 2022,”Menon Economics,June 10,2022,https:/www.menon.no/helsenaeringens-verdi-2022.18.“External Trade in Goods,”Statistisk sentralbyr,last updated January 16,2023,https:/www.ssb.no/
127、en/utenriksokonomi/utenrikshandel/statistikk/utenrikshandel-med-varer.ITC Trade Map,https:/www.trademap.org/Index.aspx.19.Innspill til nasjonalt eksportrd,HelseOmsorg21,accessed January 30,2023,https:/www.helseomsorg21.no/siteassets/innspill_nasjonalt_eksportrad_helseindustri.pdf BOSTON CONSULTING G
128、ROUP 17Multiple benefits can be realizedAdding to the appeal of investment in a more robust life sciences industry is the fact that it can benefit Norwegian society across a broad range of contexts,including patient well-being,the health care system,academia,and industry:Benefits for patients well-b
129、eing:Access to the latest treatment methods can support good health,longer life expectancy,and fuller participation in the labor force.Benefits for the health system:Improve quality and ef-ficiency of health care delivery through access to new treatments,competencies,and more resources,in line with
130、the ambitions and objectives of initiatives such as the National Cancer Strategy(Nasjonal kreftstrategi 2018202220),National Health and Hospital Plan(Nas-jonal helse-og sykehusplan 2020202321),and National e-Health Strategy(Nasjonal e-helsestrategi22).Figure 3.Life science industry is global,which b
131、rings significant opportunity but also significant competition1.Latest available data taken per country(2019 for UK;2021 for all other countries);2.Norwegian export excluding Oil&Gas;3.Norways total expendi-ture in health care is approximately 12BNOK in 2020,yet OECD numbers exclude higher education
132、;Sources:Eurostat health R&D expenditures;Trademap;Comtrade;Economist Intelligence Unit,Menon417High opportunity for life sciences:There is a global life science market,with life sciences as important GDP contributor.=Life science export in BNOK(and as%of total export),2021=Government budget allocat
133、ions for R&D in health in BNOK,20211(not including higher education)It will not be easy as competition is high:Life sciences is a crowded space with many countries having a long history of life sciences and high investments.113(3%)195(6%)TBD293027(5%)2128(8%)TBD63131369121,254(8%)x(x%)x942(29%)424(9
134、%)327(8%)192(18%)361(7%)982(42%)1,410(10%)41728(4%)120.“Leve med kreft:Nasjonal kreftstrategi(20182022),”Regjeringen.no,April 18,2018,https:/www.regjeringen.no/no/dokumenter/leve-med-kreft/id2598282.21.“Nasjonal helse-og sykehusplan 20202023,”Regjeringen.no,accessed January 30,2023,https:/www.regjer
135、ingen.no/no/dokumenter/nasjonal-helse-og-sykehusplan-2020-2023/id2679013/?ch=1.22.“Nasjonal e-helsestrategi for helse-og omsorgssektoren,”Norwegian Directorate of e-Health,accessed January 30,2023,https:/www.ehelse.no/strategi/nasjonal-e-helsestrategi-for-helse-og-omsorgssektoren.18 BUILDING NORWAYS
136、 LIFE SCIENCE INDUSTRY23.“Langtidsplanen for forskning og hyere utdanning 20232032,”Regjeringen.no,June 10,2022,https:/www.regjeringen.no/no/tema/forskning/innsiktsartikler/langtidsplanen-for-forskning-og-hoyere-utdanning-2023-2032/id2929453.24.Hele Norge Eksporterer,https:/helenorgeeksporterer.no.2
137、5.“Perspektivmeldingen 2021,”Regjeringen.no,accessed January 30,2023,https:/www.regjeringen.no/no/dokumenter/meld.-st.-14-20202021/id2834218/?ch=1.26.“HelsenringenSammen om verdiskaping og bedre tjenester,”Regjeringen.no,accessed January 30,2023,https:/www.regjeringen.no/no/dokumenter/meld.-st.-18-2
138、0182019/id2639253/?ch=1.Benefits for academia:Enable improved collaboration with the private sector,in line with objectives in the Long-Term Plan for Research and Higher Education(Langtid-splanen for forskning og hyere utdanning 2023203223).Benefits for industry:Diversify the Norwegian economy,provi
139、ding highly skilled,high-income jobs;this while increasing mainland exports in line with the National Export Strategy(Nasjonal eksportstrategi)24 objective to increase mainland exports by 50%before 2030,as well as the white papers on the Long-Term Perspectives on the Norwegian Economy(Perspektivmeld
140、ingen 202125)and the Health Industry(Helsenringsmeldingen26).The Covid-19 pandemic has demonstrated the importance of close collaboration between the different stakeholders in the health and life sci-ence sector.Ingvild Kjerkol,Minister of Health and Care Services(Labour Party)BOSTON CONSULTING GROU
141、P 1920 BUILDING NORWAYS LIFE SCIENCE INDUSTRYLife science and biopharma sectorsare evolvingWell-known macro trends are changing the life science and biopharma sectors globally.For ex-ample,the aging population with higher life ex-pectancies is accompanied by a higher prevalence of chronic disease.A
142、number of additional developmentsglobal,regional,and localare shaping the evolution of the biopharma landscape.Four key trends stand out:Individualized health care.“One-size-fits-all”health care models are limited in their efficacy,and they are fading in favor of more precise,indi-vidualized deliver
143、y of care made possible by access to more and higher quality data on individuals and subpopu-lations.The emergence of novel technologies and thera-pies such as cell therapies,gene therapies,and mRNA vaccines and therapeutics plays a significant role in driving this evolution.While these changes incl
144、uding the devel-opment and delivery of novel treatments hold great promise,they place boosted demand for coordination and collaboration at various steps in the value chain.Given the global scale of healthcare development,Norway has a genuine opportunity to take a more prominent role.Nota-bly,Norway
145、has a valuable asset in its national unique digital identifier system,which can enable tracking of patients through the full lifecycle of services,from primary and secondary care through to social service and the edu-cation system.It is also an asset that essentially the entire(secondary care)health
146、 system is state-run;means new Recent Developments Create OpportunitiesBOSTON CONSULTING GROUP 21methods,programs,and reforms can be implemented nationally based on a central decision.This is much less fragmented process than in many other markets.27Digital health and therapeutics.The ability to pro
147、vide advanced,high-quality care via digital platforms is expanding,and will facilitate sustainable improvements across multiple contexts,including clinical care settings,R&D,and supply chain and manufacturingindeed,across the health care value chain.For clinical care,these advances may enable medica
148、l procedures to be provided in non-hospital settings;likewise,they can allow for improved clinical applications in disease prevention,diagnostics,treatment selection and follow-up of pa-tients.28 R&D has many new possibilities driven by digitali-zation,data,and advanced analytics,including out-of-ho
149、s-pital clinical trials,shorter development cycles,and novel approaches to experimentation,such as non-hypothe-sis-driven drug discovery.29 Synthetic control groups and trials,for example,can provide meaningful,data-driven insights to inform R&D.30 Supply chain and manufacturing can realize notable
150、efficiency gains from digital tools,automation,and data and analytics;the resulting shorter cycles can deliver medicines to patients more quickly and efficiently.Value-based healthcare models.Health systems are shifting gradually towards value-based health care models,wherein reimbursement and incen
151、-tives are driven by optimal patient outcomes rather than activities(e.g.,lab tests).This shift is being propelled pri-marily by two factors a problem and an opportunity.The first is a problem:the increasing complexity and untenable costs associated with existing health care systems.The second is th
152、e opportunity that exists with the increasing availability of data on individual patients.Norway can act on this opportunity,given that it has both the ability to track patient outcomes through the health system,and a single payer system with incentives to optimize costs along patient lifetime.Value
153、-based care models could provide long-term benefits across the entire clinical care chain,from disease prevention to diagnosis to treatment and follow-up.31Supply resilience and domestic footprint.The pandemic created a new awareness of the life science footprint that is,the industrys importance whe
154、n it comes to national resilience in the face of disruption and crises.Likewise,there has emerged a boosted appreciation for supply resilience.In Norway,the report from the Norwe-gian Corona Commission32 highlighted weak domestic pandemic preparedness during the covid-19 pandemic.Therefore,to prepar
155、e for future crisis situations,it is essen-tial to bolster capabilities during times of normality.Follow-ing the covid-19 pandemic,national initiatives are being launched such as Kunnskap i kriser,which is focused on preparing access and sharing of data and statistics across local and national autho
156、rities.33Recent trends,such as move away from a“one-size-fits all”health care model towards more individualized delivery of health care,as well as increased focus on supply resilience in the wake of COVID-19,enhances the opportunity and importance of a domestic life science footprint.To deliver on a
157、ll of these trends,an ecosystem approach is required,with a strong climate for collaboration and co-cre-ation.Patients outcomes are improved by key stakehold-ers getting together,designing novel solutions which cant be done by one player in isolation.“Research is an important part of national prepar
158、edness.It is important to establish the required infrastructure in peace-time in order to be able to use it in crises.”Cathrine M.Lofthus,Secretary General Ministry Of Health And Care Services(HOD)27.“Norwegian Identification Numbers,”Nordic Co-operation,accessed January 30,2023,https:/www.norden.or
159、g/en/info-norden/norwegian-identification-numbers.28.Ritin Khangarot et al.,“Designing the Digital Health Care Systems That People Deserve,”BCG,May 2,2022,https:/ Ayers et al.,“Adopting AI in Drug Discovery,”BCG,March 29,2022,https:/ Fraterman et al.,“Transforming Clinical Trials with Real-World Evi
160、dence,”BCG,February 17,2021,https:/ Larsson,Jennifer Clawson,and Josh Kellar,The Patient Priority:Solve Health Cares Value Crisis by Measuring and Delivering Outcomes That Matter to Patients(New York:McGraw Hill,2022).32.Norwegian Corona Commission Report,April 26,2022,https:/www.koronakommisjonen.n
161、o/kommisjonens-rapport-og-presentasjoner.33.“Norge br bruke data og analyser bedre i kriser,”Regjeringen.no,June 30,2022,https:/www.regjeringen.no/no/aktuelt/nye-rapporter-fra-to-ekspertgrupper-norge-bor-bruke-data-og-analyser-bedre-i-kriser/id2921620.22 BUILDING NORWAYS LIFE SCIENCE INDUSTRY100+BNO
162、K public investment planned for new infrastructureThanks to planned state-sponsored public investments totaling more than 100 BNOK to support the health and life science sector,Norway stands at a unique moment of opportunity.Political leaders can help steward these invest-ments to the benefit of all
163、 Norwegians with robust efforts made toward careful prioritization of health sector initia-tives.And with allocations planned for both hospitals and other life science infrastructure,this anticipated public investment translates to remarkable potential for the country.Opportunity to accelerate retur
164、n on public investmentWith such substantial planned investments in hospital and R&D infrastructure,there is little doubt that the already strong,high-quality Norwegian health sector will grow even stronger.Norway has a unique opportunity to create addi-tional return on these investments beyond the k
165、ey objec-tive of bolstering the public health offering by simultane-ously developing a joint plan for how to use this momentum to shore up the Norwegian life science indus-try.A well-articulated plan can inspire bold ambition,taking Norway to the next level as a global player in the life science ind
166、ustry while further developing its excellent health sector.country.Figure 4.With 100+BNOK invested in new infrastructure,Norway has unique opportunity to strengthen life sciencesSource:The Feasibility study,Oslo Science City;Oslo Universitetssykehus 2022;Dagens Medisin 2022a;Byggeindustrien 2018;Dag
167、ens Medisin 2022b;Helse Sr-st.Significant investments in new hospitals 23 BNOK investment in new hospital(exp.2024)12 BNOK investment in new hospital(exp.202425)12 BNOK investment in new hospital pending approval45 BNOK for new Rikshospitalet and new Aker hospital(exp.2031)6 BNOK to expand Radiumhos
168、pitalet with new speciaized oncology clinic and proton treatment unit(exp.2024)and life science infrastructureKey projects(not exhaustive):Norways first innovation district,aiming to develop a life science ecosystemTotal planned investmentNOK35bnExpansion of Oslo Cancer Cluster,an oncology research
169、and industry clusterExpansion of Oslo Science Park,a meeting place for businesses and academia The Life Science Building at UiO for interdisciplinary research and educationExpansion of SINTEF offices and labs for micro-and nanotechnologyBOSTON CONSULTING GROUP 2324 BUILDING NORWAYS LIFE SCIENCE INDU
170、STRYExisting Strengths;Significant Chal-lenges;Real Opportunities Norway has both strengths and challenges when it comes to the development of its life science industrya combina-tion that presents a number of exciting opportunities.Among Norways most powerful assets is its existing sin-gle-payer hea
171、lth system,which is excellent.This is coupled with a strong societal framework that binds together a relatively small population with high levels of social trust and accountability.Among the public,there is a perceived short distance to authorities and decision makers.More-over,Norway features a hig
172、hly educated population earning internationally competitive salaries in high-skill profes-sions.This section will explore Norways starting point with regard to the life sciences(see Figure 5 for a visualization).We will describe several strengths and weaknesses.Overall,the following came up most oft
173、en in our interviews with experts:Top strengths:A society characterized by high levels of public trust,including high willingness to share data and participate in clinical trials Several niches of high-quality research,particularly with-in oncology,immunology,neuroscience,and ultrasound Strong publi
174、c funding for R&D,in particular for basic research activities Good health data,including ability to link data sources based on a national unique identifier.BOSTON CONSULTING GROUP 25Top challenges:The life science ecosystem in Norway does not have critical mass,with few global life science and techn
175、ology companies present Lack of infrastructure and risk capital to support scaling,including limited funding from international and private funding sources Gaps of critical expertise,i.e.,people with significant life science industry experience and commercial under-standing of the global market for
176、health and life sciences For all of its high public trust,there is limited public-pri-vate collaboration with significant cultural barriers in particular between private companies and academia and the health system.All of these considerations point to an exciting realization:these conditions have se
177、t the stage for remarkable oppor-tunity,both for Norway and for companies who take the initiative to invest in building the life science industry here.As much as the country stands to realize the benefits of a robust life science industry,Norway could,by putting the right foundation and frameworks i
178、n place,also create a very fertile ground for international companies.By contrib-uting business and industry skills,Norway can in the future drive commercialization of basic research and realize the value proposition of growth in this advanced,highly educat-ed country.Figure 5.Several factors must b
179、e in place to strengthen the life science industry in NorwayA small existing ecosystem presents opportunitiesThe Norwegian life science ecosystem is currently relatively small,but features four key areas of strength on which to build:research and ideation;pre-clinical development,testing,and scaling
180、;clinical trials;and manufacturing.By addressing the challenges that remain amid these key areas of strength,Norway can act on opportunities to build its life science industry.Regulatory framework&cultureLife science ecosystemResearch&ideationHealth data availability&accessHuman capitalFinancial cap
181、italPre-clinical development,testing&scalingClinical trialsManufacturingSomewhat establishedKey strengthPotential to strengthen26 BUILDING NORWAYS LIFE SCIENCE INDUSTRYResearch and ideationNorway boasts multiple niches of strong research.In par-ticular,interviewees highlighted significant competence
182、 related to oncology,immunology,and radiopharmacology,with the majority of research centered within and around University of Oslo(UiO),Oslo University Hospital(OUS),and Radiumhospitalet.Likewise,considerable research in neuroscience can be found emerging from Kavli Institute for Systems Neuroscience
183、 in Trondheim and Akershus University Hospital(AHUS).The Norwegian University of Science and Technology(NTNU)has engaged in applied research,such as in medical cybernetics and ultrasound,which is increasingly being used for both diagnostics and treatment.34 Finally,the country has strong competencie
184、s in general health technology and the use of health data.We performed an analysis of the output of research across 10 broad domains(see earlier section on methodology for details of our approach).The key findings from this analy-sis reveal that Norway engages in considerable research activity,produ
185、cing a number of publications not far below the level of its Nordic and European peersand those publications demonstrate quality in line with those peers.Notably,however,it is also apparent that Norway is less successful than its peers when it comes to converting publications into patents and compan
186、ies.Figure 6.Norway has high-quality research,but less success vs.peers in translating research into innovationData represents searches for the top 10 therapeutic areas.1.Publications in top 80 high-impact journals;2.Scientific literature published since 2017;3.Patents filed since 2017;4.Companies f
187、ounded since 2017;5.Total private venture investment since 2017;Source:Quid,PatentSight,Web of Science;BCG Center for Growth&Innovation Analytics6.26.111.510.76.670.41.74.84.83.019.7971.2598.06.8200.10.40.20.320.271.535225561394,2k9,9k12.010.323.57.1High-impact publications1(%of new publi
188、cations)#patents per(1k)scientific publicationsNew publications2 per 10k capita Filed patents3 per 10k capita#companies founded4 per 1M capitaSan Diego,San FranciscoBostonDisclosed PI()5 per capitaWhy the gap?Our interviews highlighted several challenges related to identifying and scaling innovation
189、s.Among these challenges is the relatively small ecosystem surrounding the main research institutions and university hospitals.While it has seen strong growth in recent years,it still lacks sufficient critical mass to drive scaling.The ecosystem also lacks major international players with R&D activi
190、ty in Norwaythe type with demonstrable experience in identi-fying and supporting innovation.“The presence of global technology and pharma-ceutical companies,and their wish to drive innova-tion,research,and development in collaboration with the clusters,is important to strengthen the norwegian ecosys
191、tem.As of today,this is only done on a few occasions and needs to be prioritized.”Ketil F.Widerberg,General Manager,Oslo Cancer Cluster34.“Putting Microbubbles to Work in Medical Ultrasound Imaging,”Business Norway,October 4,2022,https:/www.theexplorer.no/stories/health/putting-microbubbles-to-work-
192、in-medical-ultrasound-imaging.BOSTON CONSULTING GROUP 27Norway has the potential to increase its focus on IP and patentingturning this around will require an increased awareness among researchers.While the nation does have technology transfer organizations(TTOs)established to support commercializati
193、on(including Inven2 with joint ownership between OUS and UiO),these have,historically,been focused on short-term gains such as licensing rather than company creation.Finally,a considerable challenge lies with limited access to risk capital,including seed and venture funding(this topic will be explor
194、ed in greater depth in Section 3.4).“It is necessary to raise awareness of the impor-tance of patenting amongst researchers.Further-more,to maximize the value creation in the local ecosystem,the ttos should work towards establish-ing more new companies,rather than out-licensing the ip to established
195、 foreign companies.”Ingrid Teigland Akay,Managing Partner,Hadean VenturesThere is good news despite these very real challenges,how-ever,as the majority of interviewees indicated positive momentum in Norway.For example,a considerable num-ber of startups within life sciences and health tech have emerg
196、ed in recent years,and four clusters have been established to support health SMEs,companies and orga-nizations.The Norwegian Innovation Clusters are Oslo Cancer Cluster dedicated to oncology research and indus-try(Radiumhospitalet,Oslo),Norway Health Tech focused on industrializing solutions to impr
197、ove quality of health and care delivery(Forskningsparken,Oslo)and Norwegian Smart Care Cluster focused on solutions for sustainable,cost-effective and quality assured delivery of health and care services(Stavanger).35“Many young students and researchers i meet are much more market-oriented and open
198、to explore a career in industry,also based on their own re-search findings.”Jan Terje Andersen,Professor in Biomedical Innovation,University of OsloIn addition,The Life Science Cluster supports a broader range of life science companies and organization across health and bio-industrials.The joint obj
199、ectives of the clus-ters are to provide an ecosystem to support the develop-ment of competencies,network and cooperation,to facili-tate internationalization and exports,to jointly address regulatory challenges,facilitate networks of investors and act as a joint voice of the industry towards authorit
200、ies.Additionally,there are multiple life science incubators which provides meeting places,facilities,and support for startups.The majority of interviewees were of the opinion that the clusters work well.The ecosystem around Oslo Cancer Cluster is perceived to be particularly successful in trans-lati
201、ng research into clinical innovations,based on a strong clinical collaboration with Radiumhospitalet and OUS.However,several interviews pointed to the lack of a profes-sional industry association akin to Swedish Bio or Danish Bio for established innovative companies.“The life science industry can be
202、come an import-ant future industry for Norway.We are currently providing significant funding to sustain the ecosys-tem around the clusters,research investments,etc.,But we lack a clear strategy to reap the bene-fits.This could be done for example by attracting investors and contributing to the scali
203、ng up of ideas.”Alfred Bjrlo,Member of Parliament(Liberal Party)Pre-clinical development,testing,and scalingWhile research presents a strength that can be built upon,our interviews indicated a limited ability to develop,test,and scale ideas that presents an acute pain point along the value chain.The
204、 interview perspectives identified three root causes for this.First:There is limited infrastructure available for pre-clini-cal development,testing,and scaling.Notable exceptions are SINTEF,which acts as a contract research organization for private companies to support pre-clinical development,testi
205、ng,and scaling;IFE,which is focused on radiopharma-ceuticals;and Oslo Cancer Cluster Innovation Park,which provides lab infrastructure for oncology startups and bio-techs.There is also some infrastructure available in the hospitalssuch as Radiumhospitalet and Rikshospitaletbut this has historically
206、not been prioritized for R&D.Second:There is limited financing available to fund innova-tion and development projects.This is discussed in more detail in Section 3.4.Third:Due to the limited footprint of the health and life science industry in Norway,there is a lack of life science talent with signi
207、ficant industry experience.As such,the country struggles with limited knowledge of regulatory requirements,as well as limited knowledge of industry requirements and processes for testing and scaling.This is discussed further in Section 3.3.35.Norwegian Innovation Clusters,https:/www.innovasjonnorge.
208、no/no/subsites/forside/Om_NIC28 BUILDING NORWAYS LIFE SCIENCE INDUSTRYA consequence of these three root causes is that some projects are forced to move their activities outside of Nor-way when they reach this stage.It also becomes less attrac-tive for large international companies to establish R&D o
209、perations in Norway.“Norway has a strong medical research community,and an increasing number of companies with prod-ucts under development.Thus,the potential for increasing the norwegian production and export of pharmaceuticals is huge,but dependent on the national capacity for testing,scaling up,an
210、d pro-duction.This will require governmental support for establishment of new costly infrastructure and measures for supporting companies who want to establish or expand their production in Norway.”Hvard Sletta,Chief Market Developer,SINTEF IndustriClinical trialsOne opportunity for growth exists wi
211、th regard to clinical trials,as Norway has relatively few compared with neigh-boring countries.Whereas Denmark lists 17.3 studies per 10k population,and Belgium lists 10.5,Norway has only 8.7.36 However,there is growing attention to the benefits more clinical trials could bring to the health system
212、and population.As such,this ambition has driven several initia-tives across the nation.First off,the Action Plan for Clinical Studies 20212025(Handlingsplan for kliniske studier 20212025)was pub-lished in 2021,with the goal of achieving 5%patient partic-ipation in clinical trials while engendering a
213、 positive atti-tude toward participation among the population.Additionally,the RHF aims to increase the number of patients involved in clinical trials by 15%in 2022 compared with 2021.“Access to new treatment forms,training in meth-odology,and an overall contribution to strengthen the research commu
214、nities are key factors that can motivate health care professionals to collaborate with the industry.”Terje Rootwelt,CEO,Helse Sr-stCollaboration efforts are likewise key to boosting this area.NorTrials37 was established as a collaboration among the regional health authorities;Legemiddelforeningen(No
215、r-ways Association of the Pharmaceutical Industry);Mela-nor,the industry organization for competence companies that develop and supply medical and other equipment in the Norwegian market;and Innovation Norway.NorTrials aims to improve collaboration between hospitals and industry with the aim of attr
216、acting and running clinical trials,with centers of excellence hosted across the six university hospitals to act as contact points and compe-tence hubs.Meanwhile,there is also a growing focus on clinical trials in primary care,with PraksisNett established to facilitate data collection across primary
217、care providers.“Hospitals should consider clinical studies as part of the treatment offering.To strengthen this capa-bility,more clinical research nurses and project coordinators are needed.”Jnas Einarsson,CEO,RadforskSeveral interviews pointed to an opportunity to strengthen Norways position as a d
218、estination for clinical trials,in particular for phase I and II trials.This is based on key strengths such as the ability to track patients,high willing-ness in the population to participate in trials,and good access to trained biostatisticians and data scientists.“The norwegian population offers a
219、good starting point for clinical trials,as we have the data to track patients through the health system,good access to trained biostatisticians,and a population that is willing to participate in trials.”Bjrn Atle Bjrnbeth,CEO,Oslo University Hospital However,interviews highlighted several barriers t
220、hat must be addressed to make Norway an internationally competi-tive destination for clinical trials.One obstacle lies with the limited infrastructure in place,including lack of access to project coordinators and research nurses.Additionally,the current funding model for hospitals does not incentivi
221、ze a focus on innovation.The evidence requirements and pro-cess for approval of novel treatments are considered too demanding,with a need to facilitate faster approval of novel treatments so that state-of-the-art treatments be-come available for comparison.The procurement system for novel treatments
222、 is too cost-focused and does not reward innovation,limiting Norways attractiveness as an end market.Finally,there are significant cultural barriers to public-private collaborations(discussed in Section 3.5).“Within the big global pharma companies,there is fierce competition between the country-base
223、d organizations to attract clinical studies.Norway often doesnt make the cut because we are not effective enough and there is a risk that we are perceived as not sufficiently investment friendly.”Veronika Barrabs,Country Manager,Norway Novartis,and Chair of Board of Directors,Legemiddelindustrien(LM
224、I)36.ClinicalTrials.gov,https:/clinicaltrials.gov/ct2/search/map.37.NorTrials,https:/nortrials.no.BOSTON CONSULTING GROUP 29Manufacturing Norway can point to established domestic manufacturing in a few key niche areas.Several examples come to mind:GE Healthcare manufactures contrast fluids for radio
225、logy,MR,ultrasound,and radiopharmacology in Oslo and Lindesnes.Bayer produces radiopharmacological treat-ments at IFE(Lillestrm),and Vistin Pharma manufactures metformin(a diabetes medication)in Krager.ACD Phar-ma manufactures bacteriophages in Leknes.During the course of our interviews,a number of
226、insights emerged,with three receiving particular focus.First,that manufacturing is important to Norway both for its rele-vance to national crisis-preparedness and as a generator of export income.Second,that Norway could have competi-tive advantages in some niches,such as cell therapy and radiopharma
227、cologyand that the production of advanced medical technology could yield more synergies with exist-ing industries.Third,compared with other countries,there are few incentives or risk-sharing measures available to strengthen manufacturing,which currently limits its attrac-tiveness to investors and it
228、s potential to scale up.“To attract international players it is important for Norway to strengthen infrastructure and compe-tence in fields where we are good or want to be good.”Jan Brge Jakobsen,Managing Director,Bayer NorwayIn an ecosystem,it is advantageous to have all capabilities represented.Th
229、ere is potential to strengthen manufactur-ing,and tangible benefits associated with doing so.The potential for increased exports is further emphasized in a recent report to the Norwegian Export Council signed by 167 companies and organizations from across the Norwe-gian health and life science indus
230、try.38“In order to create a successful health care busi-ness and life science industry we need to strength-en capacity along the entire value chain.”Monica Larsen,Manager of Research and Development,Legemiddelindustrien(LMI)High-quality health data can be leveraged with improved accessNorway has a v
231、aluable asset in its very good health data sources.These can serve as a starting point to help realize the full potential of the life science industry.Examples include 18 national health registers,more than 50 national medical quality registers,several hundred smaller medical quality registers,over
232、200 biobanks,and numerous region-al and national population surveys on health,which are available for research.39 The ubiquity of electronic health records across primary care,secondary care,and social care presents another strength.While it is difficult to ob-tain permission to use unstructured dat
233、a from electronic health journals for research purposes,data from Norsk 38.Innspill til nasjonalt eksportrd,202239.Norwegian Directorate of e-Health,https:/www.ehelse.no/publikasjoner/konseptvalgutredning-for-helseanalyseplattformen.30 BUILDING NORWAYS LIFE SCIENCE INDUSTRYpasientregister(NPR)and Ko
234、mmunalt pasient-og bruker-register(KPR)are generally available for planning,steer-ing,and quality control.Of course,the usefulness of this asset would be limited were it not for sufficient public trust.Fortunately,the Nor-wegian population has a high level of trust in public au-thorities as gatekeep
235、ers of health data.According to a population survey conducted for the Norwegian Director-ate of e-Health in 2021,more than 70%of the population have high trust in public authorities as gatekeepers.40The countrys unique national identifier system makes it possible to merge various health and socioeco
236、nomic data sources.Norway can point to several examples of merging health data and socioeconomic data sources to the benefit of the population,including during the COVID-19 pandem-ic.In that case,the emergency preparedness register for COVID-19(Beredt C19)was established to give the Norwe-gian Insti
237、tute of Public Health an ongoing overview and knowledge of the prevalence,causal relationships,and consequences of the epidemic in Norway.“Despite the fact that access to health care data has been challenging,we still see several oncology and biotech startups that have succeeded in devel-oping produ
238、cts based on norwegian health care data.”Ketil F.Widerberg,General Manager,Oslo Cancer Cluster We have identified some key barriers Norway should work to overcome in order to realize the potential of its robust health data resources,promote growth of the health sci-ence industry,and improve clinical
239、 care.The first barrier involves the long delays when it comes to accessing regis-try data for research purposesaveraging 17 months for merged data sources and 5 months for a single data source.41 To that end,some efforts are underway.For exam-ple,a large national initiative,Helseanalyseplattformen,
240、seeks to improve access and use of health data for re-search.However,it has been paused due to data confiden-tiality concerns.Meanwhile,Helsedataservice42 has been established as a joint application portal for researchers.This provides guid-ance and facilitates a joint application form to access dat
241、a from the health registries.In the context of primary care,PraksisNett provides infrastructure for automated ex-traction of aggregated patient data from electronic health records,which are sourced from more than 500 GP offices(covering 10%of the Norwegian population).43 Another program,Velferdstekn
242、ologisk knutepunkt(VKP),provides access to select real-time data from electronic health records in the social care sector through an API,such as basic demographic data,health and care services received,visit plans,and care plans.44Data privacy guidelines present a second obstacle.Several interviewee
243、s noted that Norway has a very strict interpreta-tion of data privacy regulations,which adds additional friction to research pursuits,as well as use of data for quality measurement and steering.How do we recom-mend Norway proceed to address this obstacle?Clearly,with substantial personal consequence
244、s for violations,data security should not be compromised;however,to reduce risk aversion it can be helpful to review how other coun-tries(including Nordic peers)interpret the regulations and clarify existing guidelines for use of health data for re-search.Terje Rootwelt,CEO of Helse Sr-st,offered a
245、recommendation:“We need to establish a legal framework and guidelines for the use of health data,in particular for the merger of data sources and making data from clinical practice more accessible for research.”“Data privacy is no easy matter,but we currently find ourselves in one ditch with a much
246、stricter interpretation of privacy guidelines than in other countries which Norway usually likes to compare ourselves to.”Bjrn Atle Bjrnbeth,CEO,Oslo University Hospital Moreover,several of those we interviewed said that respon-sibilities and decision power for defining future priorities and solutio
247、ns for health data access are not clearly articu-lated.This is particularly true for the split of roles and responsibilities between and among the Norwegian Direc-torate of e-Health,Norsk helsenett,the Norwegian Direc-torate of Health,the Norwegian Institute of Public Health,the regional health auth
248、orities,and HOD.Likewise,there is potential to improve the culture of collaboration between the large national e-health programs,industry,and the Norwegian Medical Association.In order to overcome these challenges and develop an ecosystem around health data,it is necessary to:1.Clearly define and co
249、mmunicate future priorities,roles,and responsibilities for access and use of health data40.“Innbyggerunderskelsen om e-helse,”Norwegian Directorate of e-Health,last updated May 12,2022,https:/www.ehelse.no/publikasjoner/innbyggerundersokelsen-om-e-helse.41.Norwegian Directorate of e-Health,2019.42.H
250、elsedata,https:/helsedata.no.43.PraksisNett,https:/www.uib.no/praksisnett.44.Velferdsteknologisk knutepunkt,https:/www.nhn.no/tjenester/velferdsteknologisk-knutepunkt.BOSTON CONSULTING GROUP 312.Develop a plan to involve stakeholders,including both private companies and health care professionals3.De
251、velop analyses of incentives to address key questions and uncertainties of the respective stakeholder groups4.Strengthen the public sectors role as a normative body,including ability to define interoperability standards and power to ensure adherence5.Improve public-private collaboration to develop h
252、ealth data access and use,including strengthening capabilities in the public sector for procurement of technical services(ability to describe the demand,challenges to be solved for,and solution criteria),and identifying areas where it is possible to collaborate to develop use cases.“We are part of a
253、 major change process.We need to be clear on the issue,what is expected and which incentives different stakeholders possess,and ensure that we do not maneuver too quickly.”Christer Mjset,Deputy CEO,HelseplattformenHuman capital can be improved with education and incentivesThere is no doubt that Norw
254、ay has a high-quality educa-tion system and a highly educated population.World-class universities offer excellent programs,such as UiO for life sciences and NTNU for engineering.This is associated with the countrys storied industrial heritage,with strong capabilities in fields adjacent to the life s
255、ciences such as engineering,advanced process design,automation,and data science.In spite of this,all of the company represen-tatives we interviewed highlighted the limited availability of experienced life science talent as potentially the biggest barrier to developing the industry in Norway.“The big
256、gest barrier for life science industry to operate and scale in Norway is the limited access to talent with sufficient industry experience.”Michael Engsig,CEO,Nykode This limited access to talent is seen across the full ecosys-tem,including:Scientific experts with the required knowledge of indus-tria
257、l methods for R&D,pre-clinical development,testing,and industrial scaling of R&D/manufacturing activities,and significant industry experience Health care professionals with formal training in busi-ness and technology Business developers,management,and board members with international life science ex
258、perience to identify the most attractive commercial opportunities,understand global market dynamics,and know what international investors are looking for Investors with the required industry understanding to take an active role in developing companies and also be able to act as a sparring partner.“W
259、e need more health care professionals who understand both technology and innovation.It is important that this multidisciplinary skillset is incorporated into educational programs.”Cathrine M.Lofthus,Secretary General,Ministry of Health and Care Services(HOD)There are several root causes behind the l
260、ack of talent.Particular challenges lie with limited university curricula focused on associated disciplines to train students in these areas,and with limited incentives to attract existing inter-national talent to the country.Interviewees from both academia and the private sector noted that,in gener
261、al,the distance between academia and the life science industry is too large.Degree programs and university curricula are not sufficiently tailored to industry needs,and should include more practical experience and industry collaboration.Universities have the potential to seek more international coll
262、aboration and thus attract international expertise.One of Norways liabilities is that it lacks an“expat scheme”like those seen in Denmark,Sweden,and Belgium.Those 32 BUILDING NORWAYS LIFE SCIENCE INDUSTRYFigure 7.Norwegian secondary education in top 2030,yet below EU average enrollments in STEM stud
263、ies Note:STEM=Science,Technology,Engineering and Medicine.1.Testing for secondary schools across 36 OECD countries and 43 other countries;testing takes place every 3 years;2.Ranking out of 500 universities in 2022;3.Average of 27 EU countries;Source:OECD PISA scores;QS World University rankings by s
264、ubject 2022.PISA assessment score1 for secondary school students in math and scienceNumber of universities in top 100 in life sciences and medicine2 Tertiary education enrollments in STEM subjects per 1,000 inhabitantsBiologyNatural ScienceEngineeringMedicine0.80.85.46.41.31.72.62.7ChinaNetherlandsS
265、witzerlandBelgiumUKSwedenNorwayFranceUSAItaly591#1590#1515#11495#23508#15499#20502#18505#14502#17499#19501#19490#27495#25493#24478#37502#18519#9503#15#31468#40487Science scoreMath scoreEU3NorwayAustralia7Netherlands7Canada6Sweden4Switzerland4Norway1UK15USA31Johns Hopkins UniversityUniversity of Olso
266、Harvard UniversityUniversity of Oxford#1#2#3.#93programs typically include both financial incentives and fast-track application processes for work permits and family members.“Norway has historically had a greater focus on educating future academic researchers,rather than developing innovative talent
267、 with the required capabilities for the life science industry.”Carl Henrik Grbitz,Director,UiO:Life ScienceNorway might consider some new approaches to building a critical mass of life science expertise.For example,it could leverage other industries in searching for,training,and nurturing talentpart
268、icularly from adjacent industries,such as animal pharmaceuticals,fish vaccines,food pro-duction,and advanced process industries.Likewise,Nor-way could establish cross-industry networks for manage-ment and CEOs in order to provide a network for life science leaders(in particular expats).This would en
269、able and support the transfer of knowledge and skills from other industries.On the commercial side,life science companies looking to develop or expand a footprint in Norway would do well to ensure they have an appropriate team composition early on.This means making sure that along with scientists an
270、d R&D specialists,the company also employs people with the skills and knowledge to support business development and growth in this developing ecosystemaccounting for its current limitations during the early phases of growth.“In general,the norwegian life science startup teams have strong scientific
271、expertise,but to devel-op a successful business it is also important to include business development and commercial capabilities in the team from the onset.My impres-sion is that many norwegian startups could benefit from increasing focus on this.”Lotte Skolem,VP Growth,Aker Biomarine ASA,and Board
272、Member,The Life Science ClusterBOSTON CONSULTING GROUP 33Financial capital requirements are highNorway provides generous public funding for R&D in health fields;however,the country enjoys lower returns on this investment compared with international peers when measured by patents and companies(see Fi
273、gure 8).Our interviews pointed to three main reasons:First,the majority of research in health is publicly funded and performed within the hospital and higher education sectors(Figure 9).In the hospitals,the majority of R&D funding is allocated from the Ministry of Healths budget through regional hea
274、lth authorities(RHFs),with a primary objective of improving the health service for patientsnot to produce commercial innovation(Figure 10).Moreover,the higher education sector is,to a large extent,focused on basic research,with only 13%of the R&D spend for medi-cine and health reported to have indus
275、try relevance.45Second,Norway lags behind other Nordic countries in terms of its total contribution to R&D.As a percentage of GDP,Norways contribution to R&D is 2.3%.By compari-son,Sweden stands at 3.5%,Denmark at 3%,and Finland at 2.9%.46 Insights from our interviews indicate that while Norway has
276、high levels of public R&D funding,it has less R&D funding available from other sources,such as from international institutions(mainly from the EU)and private companies.As an example,compared with Sweden and Finland,Norway has applied for and received less R&D funding from the Novo Nordisk Foundation
277、,which is Den-marks largest private source of funding for the life science industry.In 2022,Norwegian organizations received 159 MDKK(323 applications)from Novo Nordisk,compared with grants of 338 MDKK(709 applications)for Finnish and 1,034 MDKK(1447 applications)for Swedish organiza-tions.47If Norw
278、ay is to manage the shift from resource-based industries to knowledge-based industries,it is essential to facilitate an increase in the total pool of R&D funding avail-ableparticularly from more international and industry sources of funding.And yet,it is likewise essential that this increased focus
279、on innovation avoid triggering a reduction in support for basic research.Norway must take a“both-and”approach here,not“either-or.”45.Indikatorrapporten,The Research Council of Norway,last updated October 23,2022,https:/www.forskningsradet.no/indikatorrapporten/indikatorrapporten-dokument/internasjon
280、al-fou.46.Indikatorrapporten,The Research Council of Norway.47.Novo Nordisk Foundation,January 2023.34 BUILDING NORWAYS LIFE SCIENCE INDUSTRYThird,public funding for innovation projects,development,scaling,and manufacturing is limited,meaning there is potential to allocate more public funding toward
281、 these critical stages.This potential is illustrated by Figure 10,which shows significant differences in the allocation of funding from The Research Council of Norway(RCN)to health and life sciences compared with other industries such as oil and gas,where public-private collaborations are more commo
282、n.“Within life sciences,the research funding dis-tributed through The Research Council Of Nor-ways life science portfolio is almost exclusively granted in the form of research projects.This is in contrast to other portfolios that support the politi-cal ambition to build an industry,such as Oil and G
283、as,Energy and Maritime.These portfolios are built with a balance between pure research calls and calls that demand innovation,industry collabo-ration,and industry co-financing.Indus try-related life science projects are left to apply in the open category“Industry and Services.”One strategy to suppor
284、t a life science industry would be to take the same balanced approach.”Alexandra Bech Gjrv,CEO,SINTEFThere are also other public sources available to support activities related to R&D and scaling in industry,but these are not earmarked for the life sciences.Key examples include BIA(Brukerstyrt innov
285、asjonsarena,research fund-ing for companies allocated through RCN),SkatteFUNN(enables reduced tax for R&D projects),and IFU/OFU(supports joint projects between industry and public ser-vices).While these mechanisms are widely used,there is potential to increase the total level of funding available,an
286、d increasingly tailor these funding mechanisms to life science industry needs.For example,one interviewee pointed to the fact that IFU/OFU requires at least 20%co-funding from public service,which is often not practical-ly feasible due to the high costs of drug development and testing.Support mechan
287、isms that help establish domestic manufacturing,such as risk-sharing or first-loss support,are not currently available in Norway.Finally,all interviews with industry stakeholders empha-sized a need to attract more private risk capital,in particu-lar seed funding and venture capital,to enable compani
288、es to scale beyond the startup stage.This is supported by a report from the Nordic Council of Ministers,which points to a market failure in obtaining capital for later-stage start-up(less than 20 MNOK in funding)and scaling phases.To solve for this,the report indicates a need to adjust man-dates of
289、national public sector financing mechanisms to neutralize market failures and introduce Nordic mandates to facilitate more systematic cross-border collaboration.48 “We need to put down a significant effort to attract international capital and this will require stronger marketing of the norwegian inv
290、estment,both from politicians and the industry.”Jnas Einarsson,CEO,RadforskInterviews highlighted that all stakeholders have a respon-sibility to increase focus on international collaborations and funding sources,which function as a“quality stamp”for international investors and talent.Likewise,Norwa
291、y will benefit from stakeholders making efforts to establish international relationships and participate in international arenas to showcase domestic capabilities.48.“An Integrated and Effective Nordic Ecosystem for Innovation and Green Growth,”Nordic Council of Ministers,October 30,2018,https:/www.
292、norden.org/en/publication/integrated-and-effective-nordic-ecosystem-innovation-and-green-growth.BOSTON CONSULTING GROUP 35Figure 8.Norway below peers on return for public R&D investments in health Figure 9.Majority of R&D in health in Norway performed in university and hospital sector with public fu
293、ndingData represents searches for the top 10 therapeutic areas.1.Publications in top 80 high-impact journals;2.Scientific literature published since 2017;3.Patents filed since 2017;4.Companies founded since 2017;5.Total private venture investment since 2017;Source:Quid,PatentSight,Web of Science;BCG
294、 Center for Growth&Innovation AnalyticsNOGENLDKUKPublic R&D funding in health,20201EUR per capita(total in MEUR)(377)(569)(448)(2,903)(2,770)Life science export(MEUR per 1 MEUR funding)1272391041Life science publications(#per MEUR funding)387823Life science patents2(#per MEUR funding)0.01
295、0.080.120.020.07Companies founded(#per BEUR funding)Public R&D funding in health excl.higher educationR&D expenses in health by executing sector(MNOK),20191.Includes funding from other ministries,private companies,donations,and foundations;Source:Indikatorrapporten 2021.R&D in health12.0R
296、&D expenses in health conducted within hospitals,by funding body(%),20192.81.23.33.84.878%15%6%1%1.1R&D in hospitalsUniversitiesPrivate companiesOther hospitalsInstitute sectorNorwegian Research CouncilInternational sourcesBasic appropriationOther domestic sources1University hospitals36 BUILDING NOR
297、WAYS LIFE SCIENCE INDUSTRYFigure 10.RCN allocates more funding to research in life sciences and less to innovation vs.other industries Not specifiedResearch centersCommercialization projectsInnovation projectsInstitutional strategy projectsResearch projectBasis allocationInternational projectsCompet
298、ence and collaboration projectsCoordination and support activitiesPetroleumEnergy,transportation,low emissionIndustry andservice sectorEnablingtechnologiesOceanHealthLand-based food,environment,bioresourcesWelfare,culture,societyNatural sciencesand technologyLife sciencesSocial sciences100%184347387
299、6486393361926Note:The graph illustrates parts of The Research Council of Norways portfolio,across types of applications and topic portfolios(excluding basic appropriation)for 2019-2020;Estimates applied to application types that make up a low share of a topic portfolios total applications
300、 due to lack of exact dataSource:The Research Council of Norway.Analyses performed by RCN and shared with SINTEF in March 2021Share of RCN funding per industry and application type(%),2019-21Regulatory and cultural barriers to overcomeOver 90%of the interviews pointed to a significant cultural barri
301、er between the private and public sector as the big-gest obstacle to strengthening the Norwegian life science sector.A number of key observations emerged from our conversa-tions:The presence of a deep cultural barrier against profiting in health care contexts Historically,limited willingness from ac
302、ademia to recog-nize the industry as a partner Limited understanding within the health sector of the need to commercialize innovation Limited incentives for the health system to collaborate and employ new medicines and technologies(with incentives currently focused on activity level rather than pati
303、ent outcomes)A procurement system that primarily scores based on cost,and thus does not reward innovation or encourage contributions to build the Norwegian life science sector Limited dialogueand some degree of mistrustbe-tween partiesThe following quote illustrates one aspect of this:“Too many peop
304、le in the public sector are of the belief that capital is simply granted.They lack both the understanding and acceptance of the need to assess the commercial viability and profit potential of a project.”Bjrn Atle Bjrnbeth,CEO,Oslo University Hospital BOSTON CONSULTING GROUP 37This status quo is some
305、what ironic,given that Norway has a long history of productive public-private collaboration in other industries.However,it is important to note multiple interviewees also highlighted that this is changing;for example,within oncology we heard more examples of strong public-private collaborations.“We
306、are seeing a positive trend,first and foremost within oncology and precision medicine,with sus-tainable public-private collaborations and,increas-ingly,easier access for private players.”Tarje Bjrgum,Head Sustainability and Future Health,Abelia Another perceived major barrier to public-private partn
307、er-ship lies with the public systems for approval and procure-ment of medicines.The associated challenges have been explored in multiple publications,including Helsenring-smeldingen49 and a more recent evaluation of Nye metod-er,the Norwegian national system for managed entry of new methods in the p
308、ublic hospital sector.50 According to the recent evaluation,some of the key challenges are:A tendency toward longer approval times for novel med-icines in Norway compared with Denmark,Sweden,and England A methodology that is not suited to evaluate the intro-duction of novel medical technologies Proc
309、urement criteria that are mainly based on cost,without sufficient emphasis on innovation or potential for improved patient outcomes.51According to our interviews,the consequences of these challenges include a reduced appetite for investment in clinical studies and academic research activities.Additi
310、on-ally,these barriers reduce the attractiveness of Norway as a market for clinical trials where access to the latest stan-dard of care is a prerequisite.“The bar is currently set very low on price;many treatments are seen as a cost and not an innova-tion to improve health.”Martin Haswell,GM,Roche N
311、orwayStrengthening the Norwegian home market to increasingly award(and incentivize)innovation and reduce the barriers for introduction of new technologies is important in order to support the life science ecosystem,reduce the barriers for dialogue between private suppliers and the public health care
312、 providers,and provide credentials for Norwe-gian companies looking to attract international investors and sell their products abroad.According to several stakeholders from the public sector,one root cause of the cultural divide between the public sector and private industry lies with a limited unde
313、rstand-ing among those in the commercial sector of the Norwe-gian health systems needs.This is compounded,then,by a perceived unwillingness on the part of commercial actors to listen and make efforts to understand those needs.“The life science industry must not only increase quality,but more importa
314、nt,must reduce the num-ber of employees per patient.To solve the chal-lenges of the norwegian health system,technolo-gies with potential to only increase quality are less interesting than technologies with potential to reduce personnel.”Gunnar Bovim,Professor,NTNU,and Leader for the Norwegian Commis
315、sion of Health PersonnelFinally,nearly all industry players we spoke with noted a lack of ownership,knowledge,and willingness to promote the life science industry on a political level.Developing good political solutions that respond to the real needs of the life science industry is crucial if the in
316、dustry is to suc-ceed in Norway.Additional examples of such solutions can be active facilitation of political meetings and delegations,sharing of information about the Norwegian health and life science industry abroad and negotiation of trade agree-ments with important international markets.“Theres
317、painted a negative picture of private en-gagement in health and welfare which i fear has prevented politicians to become those champions we need.But i do believe were about to come to a turning point.”Anne Lindboe,Mayoral Candidate,Oslo(Conservative Party)49.Helsenringsmeldingen,2018.50.“Evaluering
318、av systemet for Nye metoder i spesialisthelsetjenesten,”Proba Samfunnsanalyse,2021.51.The price of a prescription-only medication in Norway is set as the mean of the three lowest market prices of the product in a selection of countries:https:/legemiddelverket.no/english/public-funding-and-pricing.38
319、 BUILDING NORWAYS LIFE SCIENCE INDUSTRYFive Long-Term Priorities to Strengthen the Sector As mentioned before,an essential element of leadership is discerning priorities.This is particularly important when a broad range of opportunities exists.Indeed,knowing where to begin and where to allocate reso
320、urces is vital to realizing maximum benefit.To build the basis for Norways life science position,we suggest leaders focus on five key priorities.BOSTON CONSULTING GROUP 39Figure 11.To strengthen Norways life science industry,a number of basic priorities should be put in placeSource:Interviews;BCG an
321、alysis.Nationalambition for Norwaysposition in life sciencesPrioritizedtherapeuticsPrioritized steps in value chainPrioritized geographiesDefine ambition for Norways position in life sciences Set a clear national ambition for how the life science industry can support the health system Establish nati
322、onal life science strategy to prioritize and attract investments to the sector Facilitate increased ownership of and interest in the life science industry at the political levelPrioritize areas where Norway excels or needs to close gaps Prioritize therapeutic areas,steps in value chain,and geographi
323、es where Norway can excel Close gaps in value chain,e.g.,pre-clinical development phase and scaling of companies Steer funding and mandates of public investment arms to compensate for market failures Expand total funding pool for R&D Revise university curriculums in line with needs of industry and h
324、ealth system levelEstablish Norway as a global leader for health data access and usage Clarify national priorities to improve health data access and use Adjust roles and responsibilities and funding mechanism Review interpretation of GDPR/data privacy guidelines for use of health data Build and comm
325、unicate success stories for public-private collaborations on health dataMake Norway a friendly environment to attract international capabilities Adjust incentives and streamline processes to attract international talent and expats Streamline processes for ethical approval,clinical trial application,
326、etc.Establish professional networks and cross-industry fora to support companies and talentBreak cultural barriers and encourage public-private collaboration Facilitate public-private cross-collaboration through dedicated initiatives and incentives Revise public procurement framework to build home m
327、arket and collaborations Establish shared infrastructure to accelerate multidisciplinary research and innovationCulture for public-private collaborationFriendly environment to attract intl capabilities Health data access and analytics Set a clear national ambition for how the life science industry c
328、an support the health system.It is vital to establish life sciences as a matter of national ambition.Designating the growth and development of the sector as a high national priority,for example with a clearly stated aim of bringing life sciences into the top-five value-creating sectors,will set the
329、stage for all other efforts,building momentum to drive a range of initiatives.Establish a national life science strategy to prioritize and attract investments to the sector.A well-articulat-ed life science strategy with defined strategic initiatives and funding will prioritize and attract investment
330、 to the sector.Of course,this depends on industry players commu-nicating clearly to the government which initiatives are required to support it,beyond the need for funding.Inves-tors can also contribute to future success by educating both companies and the government as to what investors are looking
331、 for.To develop the strategy,both Norwegian and international stakeholders should be invited to con-tribute.Facilitate increased ownership of and interest in the life science industry at the political level.This will also take political willleaders must put explicit political focus on growth and tak
332、e an increased ownership of and interest in supporting the life science industry.This hinges on strengthening knowledge about the benefits for society,including both patients and businesses.This,in turn,can increase the appetite for developing good political solu-tions that respond to real needs.Ple
333、nty of best-practice examples have established prece-dent for the success of these efforts.Denmark,Sweden,the UK,and Switzerland all have established national life science strategies.Sweden and the UK have built a Life Sciences Office,which includes representatives from the Ministry of Trade(MoT),Ministry of Health(MoH),and Ministry of Education(MoE).Denmark built a Life Science Advisory Board in