Innovation Report

 
report BaselArea.swiss

Investing in strengths – Swiss leadership in life sciences

15.05.2017

How can Switzerland and the Basel region maintain their international leadership role in life sciences? As part of the Biotech and Digitization Day, Federal Councillor Johann Schneider-Ammann visited the Basel region to discuss current trends and challenges with a high-ranking delegation from politics, business, research and start-ups.

The importance of life sciences for the Swiss economy is enormous. Last year, the sector was responsible for 45% of total Swiss exports. Similarly, the majority of new relocations are active in the healthcare sector. Switzerland is said to a leading life sciences location in the world with the Basel region as its engine.

It is against this backdrop that Federal Councillor Johann Schneider-Ammann, head of the Federal Department of Economic Affairs, Education and Research, was invited by BaselArea.swiss and digitalswitzerland to visit the Basel region as part of the Biotech and Digitization Day to discuss current trends and challenges in life sciences with a high-ranking delegation from politics, business and research.

The event was held at Actelion Pharmaceuticals and the Switzerland Innovation Park Basel Area in Allschwil in the canton of Basel-Landschaft. Federal Councillor Schneider-Ammann emphasised the significance of the region and life sciences industry: “The two Basels have a high density of innovation and successful companies, research institutes and universities. This fills me with pride and confidence. Pharmaceuticals and chemistry are rightly regarded as the drivers of innovation.” But Switzerland cannot rest on its laurels if it is to remain successful in the future; business and politics, science and society must all use the digital transformation as an opportunity, he insisted.

The event was organised by BaselArea.swiss, which promotes innovation and business development in the northwest Switzerland cantons of Basel-Stadt, Basel-Landschaft and Jura, and digitalswitzerland, the joint initiative of business, the public sector and science, whose aim is to establish Switzerland as a leading digital innovation location in the world.

Federal Councillor Schneider-Ammann is currently visiting Switzerland’s leading regions to get an impression of the effects of digitalisation on different business sectors and to talk about promising future concepts.

Supporting biotech start-ups

Life sciences are regarded as a cutting-edge sector with considerable growth potential. But competition among the different locations is becoming more aggressive as other regions in the world are investing heavily to promote their location and attract large companies. A central question of today’s event was: How can Switzerland and the Basel region maintain its leadership role in the face of international competition?

Given its major economic importance in life sciences and when measured against other leading locations worldwide, Switzerland has comparatively few start-ups in this industrial sector. With the launch of BaseLaunch, the new accelerator for healthcare start-ups, BaselArea.swiss and the Kickstart Accelerator from digitalswitzerland have taken a first step to changing this. However, in addition to the lack of seed capital in the early phase of a company’s development, there is also a lack of access to the large capital that an established start-up requires in order to expand. Said Domenico Scala, president of BaselArea.swiss and a member of the steering committee of digitalswitzerland: “We have to invest in our strengths. This is why we need initiatives like Swiss Future Fund, which aims to enable institutional investors to finance innovative start-ups.”

The importance of an innovative start-up scene for Switzerland as a centre of life sciences was also a topic for the roundtable discussion that Federal Councillor Schneider-Ammann held with Severin Schwan, CEO of the Roche Group, Jean-Paul Clozel, CEO of Actelion Pharmaceuticals, Andrea Schenker-Wicki, rector of the University of Basel, and others.

Digitalisation as a driver of innovation

The second topic at the Biotech and Digitization Day was digitalisation in life sciences. According to Thomas Weber, a member of the government of the canton of Basel-Landschaft, this is an important driver of innovation for the entire industry and is crucial to strengthening Switzerland as a centre of research.

In his speech, Federal Councillor Schneider-Ammann focused on three aspects: first, the creation of a new and courageous pioneer culture in which entrepreneurship is encouraged and rewarded for those who dare to try something different. Second, more momentum for start-ups by realising an initiative for a privately financed start-up fund. And third, shaping the role of the state as a facilitator that opens up spaces rather than putting up hurdles or bans.

In the public discussion round, in which representatives from research and industry as well as entrepreneurs participated, it became clear that digitalisation is changing life sciences. Everyone agreed that Switzerland has the best conditions to play a leading role in this transformation process. The basis for this are its powerful and globally actively pharmaceutical companies, its world-renowned universities and an innovation-friendly ecosystem with digitally driven start-ups from the healthcare and life sciences fields. 

digitalswitzerland wants to promote this, too. According to Nicolas Bürer, CEO of digitalswitzerland, healthcare and life sciences are key industries to making Switzerland the leading digital innovation location.

A further contribution can be made by the DayOne, the innovation hub for precision medicine. Launched by BaselArea.swiss in close cooperation with the canton of Basel-Stadt, it brings together on a regular basis a growing community of more than 500 experts and innovators in an effort to share ideas and advance projects.

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The healthcare system must take responsibility

09.05.2017

Kristian Schneider wants to improve the quality of health care and better manage the rising healthcare costs by means of a network that includes doctors, hospitals, insurance companies and the state. Its aim is to provide exactly those services needed for the health of patients. For the canton of Jura, which like all other cantons suffers from the fragmentation of service providers, this could be a unique opportunity to build an integrative care system – and thus become a pioneer, says the director of Hôpital du Jura.

Interview: Fabian Käser, Steffen Klatt

What brought you to the canton of Jura?

Kristian Schneider: I was asked and had 16 hours to decide and submit an application in French. The likelihood of ending up in a high-level managerial position as a nurse is relatively rare. There are only three hospitals in Switzerland that are run by people with a nursing degree.

How did your new colleagues react to a nurse becoming a hospital director?

The reactions were almost all positive. Nurses have a different understanding of the system and speak differently with the people who are supposed to produce health – because they have done it themselves.

How are you received as a German?

I have lived a large part of my life in the greater Basel region. The Jura is not far from there. When I was approached by the canton of Jura in 2012, I was living not far from Belfort, just 20 minutes from the Jura border. This creates an affinity. But I hardly knew the canton. I quickly noticed that the people here are very friendly and open. You can build up a network quickly.

How did you approach the work?

I arrived on 1 January 2013, and the budget was already prepared with a loss of CHF 4.5 million predicted. We then created an action plan to overcome the loss, starting 40 projects to increase resource efficiency and flow efficiency. We were fairly successful in the end.

How did people react?

Although we defined the action plan from above, we made an effort to implement it together with our staff. For example, we had too many operation blocks, and our specialists suggested that we concentrate all operation blocks in Delémont. People knew where we are inefficient; we only have to give them permission to change it. But this also requires a cultural shift.

Where do things stand now?

We broke even in 2013. And we’ve been balancing our accounts since then – while the canton is less and less able to be involved in the hospital. We’ve tidied many things up and have done more in certain areas than other hospitals in the French-speaking part of Switzerland. We’ve since come so far in coding cases that we can now make this service available to other hospitals, such as Neuchâtel. With respect to accounting, our accountants have confirmed that we have the highest quality in the French-speaking part of Switzerland. We were the first hospital to be REKOLE-certified (the system of revising cost accounting and assessments in accordance with the requirements of the Health Insurance Act, ed).

We’ve also better positioned ourselves in the canton. We’re in a unique situation here: as a hospital, we have a “quasi monopoly” in acute care, outpatient care, and also in neuro-rehabilitation and geriatrics. We have 28 per cent of nursing home spots. We therefore cover a good deal of health care in the canton of Jura.

What comes next?

Credit Suisse is forecasting that health insurance premiums are set to double by 2030. In the canton of Jura, this would put 60 per cent of the population below the poverty level. So this raises the question of how we can shape health care in a way that we can still pay for it.

What is driving the costs?

Primarily outpatient care and the age structure. Of course, most of these costs are in the final one or two years, but they begin to rise in the years leading up to this. To prevent this, we need a healthcare system with greater efficiency. Many of today’s costs do not contribute to improving health.

How do you plan to manage the cost drivers?

If I see my role as guiding people through a healthy life, then this also means that people consume only as many healthcare services as they need. So I have to prevent doctors from prescribing services that people don’t really need.

The only way to achieve this is by making all actors take responsibility for the quality and the costs. Doctor have to be paid for keeping their patients healthy.

What could this look like?

We have to build up a network in close cooperation with doctors and change the financing system. Let’s assume that every person has a healthcare budget of CHF 5,000 per year, for instance. Then we would have CHF 360 million for the entire canton of Jura with its 72,000 inhabitants. No more. If something is left over, then it would remain in the network and everyone would have an interest in prescribing only that which brings added value. And there would also be an interest in investing in preventative care.

How would you organise this?

You first have to create a network and regulate it through a framework contract. The most important rule is that everyone only does what is actually necessary. In this network you form a quality committee as a second level, which uses actual cases to examine if the cooperation works. Thirdly, the actors should work together in a physical sense as closely as possible. So if I build a hospital, a healthcare centre should be built right next door to it. And fourthly, the network must invest in preventative care. This can also be because money is left over.

How would you finance the network?

This would be done by the insurance companies. They have no interest in having us exhaust the maximum budget. Insurance companies would therefore sell the model to their policyholders. Insured people who decide in favour of our network would then pay somewhat less than if they had a completely open choice of doctor and hospital.

Isn’t this what Swica is already doing with its healthcare centres?                                                                                              

Swica only does this with primary care, without a hospital. The canton of Jura now has a unique opportunity: it is manageable and has only one hospital

What do you need to build this network?

I would need an experienced partner. And it already exists: Réseau DELTA is a network in the greater Geneva area that is active in primary care. It is very interested in trying something like this with a hospital. We are also talking with Medbase and University Hospital Basel as potential partners. In the end it also needs the canton because the financing model will be changed. But I don’t see a problem there.

Because it will be the same amount just under a new name for the canton?

Precisely. The 55 per cent, which it assumes for hospital accommodation, could be part of the overall budget. It could then show its citizens that healthcare costs no longer have to automatically increase. At least not for those who choose our network model.

When do you begin?

I’m already negotiating now. For the first time since it was founded, the canton is now writing its owner strategy. It has to explain if it has expectations of us as a hospital in regard to the overall costs of the healthcare system. And if yes, if we have the freedom to change the structures. The federal government, which is ultimately responsible for the financing, is open to such models. The canton of Jura could therefore take a step toward a completely different system. It could even establish itself as a region where well-off elderly people spend their last years. This could turn health care into an interesting economic factor in the Jura.

Will you stay in the canton of Jura until you retire?

Enjoying my work matters to me, and I have that here. But I’m unsure if this would also be good for the hospital. Only time will tell. In our past-paced world we need change at such positions, fresh impetus.

About:

Kristian Schneider (45) was born in Frankfurt am Main. He was trained as a nurse in Basel and worked for close to 20 years at University Hospital Basel, the last five years as head of the emergency department. From 2007 to 2009 he completed a diploma programme at the University of Bern in Health Care Management. He has been the director of Hôpital du Jura since 2013. The Jura Cantonal Hospital was formed in 2002 through the merger of the hospitals in Delémont, Porrentruy and Saignelégier and employs 1,655 people.

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Dr App – Digital transformation in the life sciences

30.11.2016

The future belongs to data-driven forms of therapy. The Basel region is taking up this challenge and investing in so-called precision medicine.
An article by Fabian Streiff* and Thomas Brenzikofer, which first appeared on Friday, 14 October 2016, in the NZZ supplement on the Swiss Innovation Forum.

So now the life sciences as well: Google, Apple and other technology giants have discovered the healthcare market and are bringing not only their IT expertise to the sector, but also many billions of dollars in venture capital. Completely new, data-driven, personalized forms of therapy – in short: precision medicine – promise to turn the healthcare sector on its head. And where there is change, there is a lot to be gained. At least from the investor’s point of view.

From the Big Pharma perspective, things look rather different. There is quite a lot at stake for this industry. According to Frank Kumli from Ernst & Young, the entry hurdles have been relatively high until now: “We operate in a highly regulated market, where it takes longer for innovations to be accepted and become established.” But Kumli, too, is convinced that the direction of travel has been set and digitalization is forging ahead. But he sees more opportunities than risks: Switzerland - and Basel in particular - is outstandingly well-positioned to play a leading role here. With the University of Basel, the Department of Biosystems Science and Engineering ETH, the University of Applied Sciences Northwest Switzerland, the FMI and the University Hospital Basel, the region offers enormous strength in research. It also covers the entire value chain, from basic research, applied research and development, production, marketing and distribution to regulatory affairs and corresponding IT expertise. The most important drivers of digital transformation towards precision medicine include digital tools that allow real-time monitoring of patients – so-called feedback loops. The combination of such data with information from clinical trials and genetic analysis is the key to new biomedical insights and hence to innovations.

Standardized nationwide data organization
In rather the same way that the invention of the microscope in the 16th century paved the way to modern medicine, so data and algorithms today provide the basis for offering the potential for much more precise and cheaper medical solutions and treatments for patients in the future. At present, however, the crux of the problem is that the data are scattered over various locations in different formats and mostly in closed systems. This is where the project led by Professor Torsten Schwede at the Swiss Institute of Bioinformatics (SIB) comes into play.

As part of the national initiative entitled Swiss Personalized Health Network, a standardized nationwide data organization is to be set up between university hospitals and universities under centralized management at the Stücki Science Park Basel. Canton Basel-Stadt has already approved start-up funding for the project. The standardization of data structures, semantics and formats for data sharing is likely to substantially enhance the quality and attractiveness of clinical research in Switzerland – both at universities and in industry. There is no lack of interest in conducting research and developing new business ideas on the basis of such clinical data. This was apparent on the occasion of Day One, a workshop event supported by BaselArea.swiss for the promotion of innovation and economic development and organized by the Precision Medicine Group Basel Area during Basel Life Sciences Week.

More than 100 experts attended the event to address future business models. Altogether 14 project and business ideas were considered in greater depth. These ranged from the automation of imaging-based diagnosis through the development of sensors in wearables to smartphone apps for better involvement of patients in the treatment process.

Big Pharma is also engaged
“The diversity of project ideas was astonishing and shows that Switzerland can be a fertile breeding ground for the next innovation step in biomedicine,” Michael Rebhan from Novartis and founding member of the Precision Medicine Group Basel Area says with complete conviction. The precision medicine initiative now aims to build on this: “Despite the innovative strength that we see in the various disciplines, precision medicine overall is making only slow progress. The advances that have been made are still insufficient on the whole, which is why we need to work more closely together and integrate our efforts. A platform is therefore required where experts from different disciplines can get together,” says Peter Groenen from Actelion, likewise a member of Precision Medicine Group Basel.

There is also great interest among industry representatives in an Open Innovation Hub with a Precision Medicine Lab as an integral component. The idea is that it will enable the projects of stakeholders to be driven forward in an open and collaborative environment. In addition, the hub should attract talents and project ideas from outside the Basel region. The novel innovation ecosystem around precision medicine is still in its infancy. In a pilot phase, the functions and dimensions of the precision medicine hub will be specified more precisely based on initial concrete cases, so that the right partners can then be identified for establishing the entire hub.

Leading the digital transformation
The most promising projects will finally be admitted to an accelerator programme, where they will be further expedited and can mature into a company within the existing innovation infrastructures, such as the Basel Incubator, Technologiepark Basel or Switzerland Innovation Park Basel Area.

Conclusion: the Basel region creates the conditions for playing a leading role in helping to shape digital transformation in the life sciences sector and hence further expanding this important industrial sector for Switzerland and preserving the attractiveness of the region for new companies seeking a location to set up business.

* Dr Fabian Streiff is Head of Economic Development with Canton Basel-Stadt

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Basel startup Advanced Osteotomy Tools AG wins award

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“This is the century of biology and biology for medicine”

05.10.2016

Andreas Manz is considered one of the pioneers in the field of microfluidics and at present is a researcher at the Korea Institute of Science and Technology in Saarbrücken (KIST Europe) and professor at Saarland University.

In our interview, the successful scientist explains the motivation that drives him to research and what it means to receive a lifetime achievement award from the European Patent Office.

You are known as a pioneer of microfluidics. How did you come to start researching in a completely new field?
Andreas Manz*:
Even as a child I was really fascinated by small things. They were mostly stones, insects or bugs that I took home with me. This interest in small things stayed with me, and eventually I went on to study chemistry at the ETH Zurich. In my PhD thesis I examined the natural law of molecular diffusion. If you entrap two molecules in a very small volume – rather like two birds in a cage – they cannot get away and become faster. I was instantly fascinated by this acceleration. My professor Willy Simon, an expert in chemical sensors and chromatography, talked in his lectures about processes can also get very fast when they are reduced in size. And that instantly fascinated me.

But so far you have been talking about pure chemistry – when did you get the idea of using chips?
I started working for a company in Japan in 1987. That’s where I first came into contact with chip technology. I was part of the research department myself, but I kept seeing colleagues disappearing into cleanrooms and coming back with tiny chips. That inspired me and got me wondering whether you could not also pack chemistry onto these chips instead of electronics. After all, even the inner workings of the tiniest insect involves the transportation of fluid, so it should also work on a small chip. At Hitachi I was eventually able to get my first microfluidic chip produced for test purposes.

From Japan your journey then took you to Ciba-Geigy in Basel. What prompted that move?
Michael Widmer was then Head of Analytical Chemistry Research at Ciba-Geigy in Basel. This brilliant fascinated me from the word go: he had the vision that you should also integrate crazy things in research and not only look for short-term financial success. Industry should allow itself to invest in quality and also develop or promote new methods in the research activities of a company if it could be of benefit to the company. So Professor Widmer brought me to Basel, where it was my mission to pack “the whole of chemistry”, as he put it, on a single chip. While Michael Widmer did not yet know what to expect, he had a feeling that it could be worthwhile.

How did you go about it?
At that time, chips were very new and not entirely appropriate for the world of pharmaceuticals. Ciba-Geigy, too, was not enthusiastic about the new application initially. There was no great interest in making changes to existing technologies and processes that worked. But in my research I was able to try out what might be possible. I found, for example, that electrophoresis – a method for separating molecules – could work. It would be relatively easy to miniaturize this method and test it to see whether it also speeds up the process. And the results were very good: We were able to show that a tenfold miniaturization of electrophoresis makes the process 100 times faster without compromising the quality of the information. This realization was really useful for clinical diagnosis and the search for effective molecules in drug discovery. At the same time, we were also testing different types of chips that we sourced from a wide variety of producers.

When did the time come to go public with the new technology?
At the ILMAC in Basel in 1996, Michael Widmer organized a conference in the field of microfluidics – which proved to be a bombshell. We had planned for this effect to a large extent, because in the run-up to the meeting we had already invited selective researchers and shown them our work. This hyped things up a little, and at the conference we were eventually able to mobilize researchers from Canada, the USA, the Netherlands, Japan and other countries to present the new technology of microfluidics.

Although the attention was there, Ciba-Geigy nevertheless later brought research in this field to an end. Why was that?
Basically we lacked lobby groups within the company and a concrete link to a product. Our research was somewhat too technical and far ahead of its time, and within Ciba-Geigy they were simply not yet able to assess the potential of the technology. Added to which, we had not given any concrete consideration to applications; we were more interested in the technology and experiments than in its commercial use. When a large picture of me then appeared in a magazine with a report on microfluidics, and the journal pointed out on its own initiative that Ciba-Geigy was not adequately implementing the technology, the research was stopped. I was quite fortunate under the circumstances: Since the company had terminated the project, I found that – despite a non-compete clause – I was able to follow the call to Imperial College in London within a short time, where I could continue research in microfluidics with students. In addition, I joined a company in Silicon Valley as consultant.

Is it not typical that a large company fails to transform a pearl in its portfolio into a new era?
You should not see it so negatively, because microfluidics was a pearl not for the pharmaceutical industry, but rather for environmental analysis, research or clinical diagnosis. The pharmaceutical industry dances to a different tune. It prefers to buy in the finished microscope at a higher price than get it constructed itself for relatively little money. Michael Widmer and his team in research and analytical chemistry at Ciba-Geigy developed many things in a wide variety of fields – with which were far ahead of their time.

Microfluidics is an established field today. What are the driving forces now?
To my mind there are two driving forces: firstly the application and the users and secondly academic curiosity as regards the technology and also training. The first of these is the stronger driving force: there are cases in which the application of a microfluidic solution is not absolutely necessary to do justice to the application. Take “point of care”, for example. The objective is to analyse a patient directly at the place where he or she is treated – for example, in intensive care. The patient is evaluated, blood and respiratory values are analysed, and it is possible to assess immediately whether the measures taken are having an effect in the patient. Another possibility is to integrate the widest variety of analytical options in smartphones – similar to the Tricoder in Star Trek. I’m pretty sure that something like that is feasible. But at the moment the hottest topic in the commercial sector is clinical diagnostics. This came as a surprise to me, because you cannot reuse a chip that has come into contact with a patient’s blood. You need a lot of consumable material, which is also reflected in the price. But perhaps new funding models can be found in which, for example, the device is provided, but the consumable material – i.e. the chips – are paid for separately, rather like a razor and razor blades.

Where do you see opportunities for Switzerland in this field?
The education of qualified people is important. Here the ETH and EPFL play a particularly important role for Switzerland, because they attract students from all over the world. They hopefully leave Switzerland with good memories and could possibly campaign later for the commercialization of technologies. That could be a huge opportunity. Of course there are also generous people within Switzerland, but there is a tendency here to economize and think twice before deciding whether and, if so, where to invest one’s money. It’s a question of mentality and not necessarily typically Swiss. It’s also not a bad thing, because in precision mechanics, for example, reliability and precision are essential – and this technology fits with our mentality. “Quick and dirty” works better in Silicon Valley and Korea – but the products then often fail to ensure up to the quality standards here. As a high-price island, Switzerland offers little, opportunity for cheap production, which is why the focus is on education and existing technologies. This too is very important and has a good future.

Will microfluidics one day become as big as microelectronics is today?
I don’t think so, because it is limited to chemical and cytobiological applications and is also not as flexible as microelectronics. At most, I see the new technology being used on existing equipment or processes.

But most of the systems on the market today are very much closed, so it is difficult to integrate new technologies here.
Yes, but that’s only partly true, because existing devices also have to be upgraded. Take a mass spectrometer, for example. You can buy one of these, and there are certainly many companies that sell this equipment. But if ten companies offer something equivalent, you have to stand out from the mass. So if a “Lab on a Chip” is added on, then this mass spectrometer enjoys a clear advantage. While the company makes money from the sale of the equipment, it is the microfluidic chip that gives the incentive to buy – and there is certainly a lot of money to be made from this. You see, we are living in the century of biology and medicine and are only just beginning to takes cells from the body to regenerate them and then perhaps re-implanting them as a complete organ. When you see what has been achieved in physics and electrical engineering in the last century, and translate that into biology and medicine, then we have an awful lot ahead of us. Technology is needed to underpin these radical changes. SMEs in particular are very good at selling their products to research; that’s a niche. In most cases, small companies use old technology and modify it – such as a chip in a syringe that then analyses directly what the constituents of a fluid are when it is drawn up into the syringe. This opens up many opportunities.

You have also co-founded companies, but describe yourself mainly as a researcher. How do the two go together?
Actually I was never an entrepreneur, but always just a scientific advisor. I preferred to experience the academic world instead of becoming fully engaged in a company. Deep down, I’m an adventurer who comes to a company with wild ideas. Money is also never a priority for me; I always wanted to improve the quality of life or give something to humanity. It is curiosity that drives me. When I see a bug that flies, that drives me to find out how it works. There are ingenious sensors in the tiniest of creatures, and as long as we cannot replicate these as engineers, we still have work to do. This inspires me much more than quarterly sales revenue and profits.

But money is also an important driver for research.
Yes, it’s all about money, right down to university research. Research groups are commissioned by companies because of the profit they hope to gain. Even publicly funded research always has to show evidence of a commercial application. Curiosity or the goal of achieving something of ethical value is hardly a topic in the engineering sciences. Of course it’s important that our students can also enter industry; after all, most of the tax revenue comes from industry. But if I personally had the freedom to choose, then I would prefer to pursue work as a form of play – which can by all means result in something to be taken seriously. Take electrophoresis on a chip: That was also quite an absurd idea to begin with, and it led to something really exciting! A lot of my work therefore has a playful, non-serious aspect to it – for me that is exactly right. You see, I can produce a chip which deep inside it is as hot as the surface of the sun, but which you can nevertheless hold in your hand. It’s crazy, but it works, because only the electrons have a temperature of 20,000 Kelvin. The glass outside does not heat up very much as a result, and the chip does not melt. And suddenly you have plasma emission spectroscopy on a chip as the result of a crazy idea. I feel research calls for a certain sense of wit, and I often like to say that, with microfluidics research, we take big problems and make them so small that you can “no longer see them”.

You have covered so many areas of microfluidics yourself – are other researchers still able to surprise you with their work?
Admittedly, I am rather spoiled today by all the microfluidic examples that I have already seen. Sometimes I feel bored when I go to a microfluidics conference and see what “new” things have emerged – I somehow get the feeling I’ve seen it all before. The pioneering days, when there was also a degree of uncertainty at play, are probably definitely over. Today you can liken microfluidics to a workshop where you get the tools you need at any given time. This means of course that the know-how has also become more widespread: Initially I possessed perhaps a third of all knowledge about microfluidics worldwide; today it is much less. So I now enjoy casting my research net further afield.

You received a lifetime achievement award from the European Patent Office last year. What does this award mean to you?
You cannot plan for an award – at most you can perhaps hope for one. When you then get it, it brings a great sense of joy. The award process itself was also exciting: as with the Oscars, there were three nominees: a Dutchman who developed the coding standard for CD, DVD and Blu-ray discs, which is still used to this day, and a researcher from Latvia who is one of the most successful scientists and inventors in medical biochemistry with more than 900 patents and patent applications. Faced with this competition, I reckoned I did not have much chance of the award and was absolutely astonished when I was chosen. The jury explained that its decision was down to the snowball effect: citations almost always refer to my patents at the time with Ciba-Geigy.

Interview: Fabian Käser and Nadine Nikulski, BaselArea.swiss

*Andreas Manz is a researcher at the Korea Institute of Science and Technology in Saarbrücken (KIST Europe) and professor at the Saarland University. He is regarded today as one of the pioneers in microchip technology for chemical applications.

After positions in the research labs of Hitachi in Japan and at Ciba-Geigy in Basel, he took up a professorship at Imperial College in London, where he headed the Zeneca-SmithKline Beecham Centre for Analytical Chemistry. In the meantime he was also a scientific advisor for three companies in the field of chip laboratory technology, one of which he founded himself. In 2003, Manz moved to Germany and headed the Leibniz Institute of Analytical Sciences (ISAS) in Dortmund until 2008.

Around 40 patents can essentially be attributed to him, and he has published more than 250 scientific publications, which have been cited more than 20,000 times to date.

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«We will be certificating the world’s first autonomous robotic surgical device»

04.11.2015

The laser physicist and entrepreneur Alfredo E. Bruno is co-founder and CEO of the medtech start-up Advanced Osteotomy Tools (AOT) in Basel. Their surgical robot «Carlo» (acronym for Computer Assisted, Robot-guided Laser Osteotome) is an award-winning project (Pionierpreis 2014 and CTI MedTech 2015). The company will exhibit «Carlo» at the Swiss Innovation Forum 2015 on 19th November.

In the i-net interview, Alfredo E. Bruno explained his roadmap for AOT and what drives him to be an entrepreneur.

You are a laser physicist – what brought you to medtech?
Alfredo E. Bruno*: My younger daughter needed difficult orthognathic surgery to correct conditions of the jaw and face. This brought me into contact with Professor Hans-Florian Zeilhofer and Dr. Philipp Jürgens from the Department of Oral and Maxillofacial Surgery at the University Hospital Basel. I was worried about my child, but the surgeons devoted a lot of time to explain the procedure to us. Their pre-operative approach to surgery fascinated me more and more. I asked the surgeons why they were not cutting bones with a miniaturized laser instead of mechanical tools to best reproduce the software-planned intervention. In another project, I had developed a laser of this kind to cut and drill through nails. At this point, we all realized that we could create something very useful together.

How did you gain your knowledge in surgery?
I had absolutely no idea about surgery until I met the surgeons – despite the fact that my father was a rural medical doctor. Indeed, when I see a drop of blood, I panic. But I wanted to know more about this new type of planned and navigated surgery the surgeons were talking about. I managed to find a good 160 publications and about 20 patents in the field, read them during vacations and became a «theoretical» surgeon. Reading these documents, I noticed that Professor Zeilhofer appeared as co-author in many of these publications and realized that he knew a lot about pre-operative planning and navigation. I started to design «Carlo» from scratch using all available state-of-the-art technology, and trying not to be biased by the robotic surgery products already on the market. What worried me most was the software, which is crucial to integrating the whole system. Hans-Florian Zeilhofer introduced me to Professor Philippe Cattin, an expert in navigation who liked the idea from the outset. He was the «missing link» to the realization of «Carlo».

Was it always clear that «Carlo» would be the goal of AOT?
As an entrepreneur, I made it very clear from the beginning that I wanted to have a product rather than a nice academic idea. Instead of writing a business plan, we first applied for patent protection of the innovations. The business plan came afterwards with a business model in which we at AOT would only focus on core technologies and would outsource the technologies mastered by other companies under contractual partnerships in order to reduce development time.

Were you ever afraid that AOT might fail?
While writing the business plan, I clearly saw that there was a need for our product. We had the right founder’s team, but I was worried about the funding, because there was a global economic crisis and investors had become cautious. Therefore, I decided to talk to a few experts I knew in the start-up media in Switzerland before launching the initiative. They reviewed the AOT case and encouraged me to pursue the project, because it was truly innovative and, for this kind of project, they argued that there are always funds available in Switzerland. And indeed, with our first pitch in BioBAC, we gained a lead investor. Shortly afterwards, we won the three stages of Venture Kick and I was then asked to participate in the Swiss Venture Day of CTI Invest to make a pitch. Despite some doubts I had about the completely new surgical device, many potential private and institutional investors were literally queuing right after my presentation to talk to me about the «Carlo» device and AOT as an investment opportunity.

Why do you think your pitch attracted potential investors?
I think the every one of the technical founder’s team had a remarkable technical record which inspired trust, and I also have a good entrepreneurial record, all of which make up the ingredients investors are looking for to fund new projects. The pitch is key to convincing investors. We cannot afford to devote much time to making «professional» slides, but the audience realizes that we have an unbeatable project and know what we are doing; and they can see during the Q&A sessions that we are very authentic.

In the beginning, you faced some criticism with regard to the feasibility of a complex medical device such as «Carlo». Do you still face negative reactions?
No, not anymore! When I started speaking of «cold» laser ablation, many physicists questioned this paradoxical term. Today, after we assessed the remaining surfaces of the bones and captured the ablation process with thermal cameras showing that this cutting method is even cooler than mechanical cuts, nobody has any doubts about our assertion anymore. Another critical issue raised by some experts was depth control. Some argued that we would never be able to have depth control working in real time. Again, this is no longer an issue.

You recently presented this depth measurement system for the first time. How does it work?
With the help of external academic partners we developed a laser interferometric method suitable for our device that provides not only the depth of the cut but also its width right after every laser shot so its entire profile can be reconstructed in real time. This «probing» laser beam is co-axially mixed with other visible pointing laser beams to ensure that the surgeon can observe the cut on the monitor. There are many computer-controlled processes such as the depth control running in parallel during some of the tasks. They are processed by a microprocessor which sends values that are already calculated to the «Carlo brain» to decide what to do next. With this software technology, we are pushing the envelope in three disciplines: laser physics, data processing and synchronization.

Could this know-how be used for other applications in or beyond surgery?
As pioneers in this field, we encounter many new problems to solve. But on the other hand, once we have found the solution, we file for patent protection and, in this way, we’re strengthening our patent protection. Some of these innovations could be used for other applications, but we have to remain focused on one thing: getting device certification. Once we «put our foot on the moon», we could follow up on other options with the technology we have discovered.

It sounds as if you are not facing any difficult situations anymore with AOT?
Problems are constantly arising, but we have a very professional and courageous team that brainstorms the problems at hand in complete transparency and always comes up with one or more solutions. Although scientists are trained to present nice results in conferences while leaving the bad results aside, we are upfront with the bad news. If a problem appears, it’s immediately brought to the attention of the team so we can find a solution together.

What in your opinion are the key factors for an innovative company?
Everyone knows what the main ingredients for innovation are: You have to have a product that addresses a need, a unique proprietary technology, the right people and the financial means. However these ingredients do not guarantee success, and many start-ups that have these ingredients fail. The causes of failure are often underestimated, but should be addressed in the risk analysis of the business plan. A classical killer of technological innovation is when investors strategically decide to sell the start-up to an established competitor. But the buyer wants to get rid of a potential competitor! A possible antidote is to have a good legal adviser. A lawyer can help you to set clear goals for the steps after the acquisition and implement penalties in the contract. Also, it is good to keep the founders of the company in-house, because these people are part of the success and often the «engine» of a start-up.

What makes Switzerland a good place for you to launch a medtech start-up?
I have worked with people and projects in a few countries. What I find unique in Switzerland is the scientific family: Everybody knows each other and has close relationships. For instance, when the issue of a suitable depth control appeared, we spoke to other scientists who had solved similar problems for eye surgery. They came up with friendly and open advice without speculating on what the benefit would be for them. This is by no means the rule in other countries, where often knowledge is seen as power. But the free flow of information in this country is crucial in ambitious high-tech projects.

Where do you see room for improvement of entrepreneurship in Switzerland?
Switzerland already ranks as leader when it comes to innovation, but I see there are three things that could be changed to foster even more innovation – namely, the no-risk mentality, the fear of failure and the loss of reputation. The Swiss education system teaches students to avoid risks instead of focusing on the possible reward associated with a risk. Indeed, the word risk has a negative connotation in Switzerland, but entrepreneurship without risk is as hypothetical as perpetual motion.
How can we overcome our fear of failure? One recipe for passing an exam is «to do the homework in time to get a good sleep the night before». In a high-tech start-up, this recipe means firstly drafting a comprehensive and realistic business plan and strong IP protection. Failure is part of the game, and the question needs to be how fast you can get back up after getting knocked down, not whether you are going get knocked down.
Regarding the loss of reputation, people look at you with suspicion when you’re trying to build your own company based on an unusual idea. And your employer may think you’re not happy with the job. But large established companies don’t have the framework for promoting new ideas. They should support their employees to pursue their own ideas and get trained on founding a new company.

What drives you as an entrepreneur?
I have always tried to do things I like and am capable of realizing. I have always been a curious person. As a child, I built rockets and blew the fuses in our house with my experiments – for example – to split water into O2 and H2 with 240 volts! My grandfather, who was a full-blooded entrepreneur, also taught me the basics of entrepreneurship. I guess the ideal situation for high-tech entrepreneurship is a «born scientist» with a flair for entrepreneurship, as management skills can be acquired.

Do you have any entrepreneurial role models?
Columbus has always fascinated me since childhood. Only later did I realize that he was an incredible entrepreneur who first had to convince the queen to get funds and had to overcome many odds. He definitely had the intelligence, the passion and the courage required to literally embark on such a project. And although pirates are not exactly good role models, they were excellent start-up entrepreneurs. Pirates planned their attacks rigorously in advance, had to get funding or develop advanced boats with higher masts to sail faster. Their structure was similar to a start-up nowadays, and they even had the equivalent to stock option plans, where the loot was distributed among all the hierarchies in proportion to their performance.

Interview: Fabian Käser and Nadine Nikulski, i-net

*Alfredo E. Bruno holds an M.Sc in Quantum Chemistry and a PhD in Laser Physics from the University of Saskatchewan (Canada). Alfredo came to Munich in 1985 as an Alexander-von-Humboldt fellow followed by a teaching position at the University of Zürich. In 1988 he joined Ciba-Geigy and later Novartis where he accumulated more than 25 years of experience in biomedical, preclinical and clinical research in joint projects with Spectra Physics and Chiron Diagnostics.

At Novartis, Alfredo Bruno invented Transungual Laser Therapy for nail diseases, which was the basis for the spin-off of TLT Medical Ltd in 2004, where he was the sole founder and CTO. After three years of successful operation under his leadership, TLT Medical was sold to Arpida Ltd in 2007, where he became the Head of Antifungals. In 2009, he co-founded FreiBiotics in Freiburg (Germany), where he was CEO until mid-2011. In 2011, he co-founded Advanced Osteotomy Tools (AOT), where he is the CEO. He has published over 35 peer-reviewed publications and holds more than 15 patents and has been on the editorial board of three international scientific journals.

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«Only when it is shared in the team does an idea take shape»

03.09.2015

Hans-Florian Zeilhofer is a surgeon, innovator, scientist and entrepreneur. He has performed pioneering work in many fields of reconstructive facial surgery. Always driven by the goal of improving the situation for his patients, Zeilhofer is constantly initiating new projects that meet with international acclaim – as also with his latest project, Miracle, which his team will present at the Lift Basel Conference 2015.

In this interview he explains why work in an interdisciplinary team is so important for him and why he is convinced that new impulses are being generated worldwide from Northwest Switzerland.

You are a surgeon with an extraordinary background – how would you describe yourself?
Hans-Florian Zeilhofer*: Above all I’m an inquisitive person who likes to explore new paths. Even in areas where there is no path as yet, and even if I don’t know whether and how I will arrive. It‘s an enriching experience to keep meeting new people on the way and finding the solutions together that will hopefully fulfil their purpose. It’s really inspiring when you approach and arrive at a goal in this way.

You perform surgery, establish companies and are scientifically engaged in diverse areas. How do you manage with your work-life balance?
I dislike the term work-life balance. I don’t put my professional life and private life on the scales to make sure they are in balance. You should always do your work with joy and passion and find fulfilment in your work. Then you will also no longer speak of work-life balance. If work is done or has to be done without any consideration of the overall context behind it, then there will be no sense of purpose or meaning. It is therefore important to establish working conditions that help to invest the work with meaning – and that applies in all kinds of work.

You have already done a lot in your life: medicine and dentistry, philosophy, science and management – how do you reconcile all that?
I don’t see my different activities as contradictory, but rather as mutually complementary. Today I can do a lot of things that I could not do five or ten years ago and am constantly trying to appreciate what new perspectives there are and what I would like to keep working on. You never stop learning, and I learn a lot from younger colleagues. That’s very enriching for me in the late stage of my professional career.

Do we live in an age where more Leonardo Da Vincis are needed? Should doctors acquire a broader knowledge?
It’s not absolutely necessary to emulate the universal genius, but a certain knowledge base is extremely important. The oral and maxillofacial surgeon has to study both medicine and dentistry. But that is no longer enough by many means. A budding specialist should acquire a wide variety of knowledge, for example in engineering and the use of computers or media, but knowledge of economics and ethics is also become increasingly important. I also believe that the training has to change. I’m in the fortunate position that I am able to influence developments and guide the youngsters. That’s a really nice experience.

You are a pioneer in many areas of medical technology. How do those famous Eureka moments come about?
My innovations always start out from an everyday problem for which I am seeking a solution. If I find a conventional solution for our patients is no longer adequate or satisfactory, then I start looking for an alternative. Solutions often emerge quite suddenly or spring from a moment of meditative calm.
The idea then comes, for example, when I’m sitting in the train with my eyes closed or in the morning under the shower. It’s working there somewhere in the subconscious and then suddenly an approach to solving the problem presents itself. As a rule it will not yet have clearly defined contours, but will be sufficient to allow me to make some brief notes. Then it is important to have friends and partners with whom I can exchange ideas. For only through this exchange can the idea come into being and take concrete shape. If a partner then asks the right questions, this quickly takes it forwards and you can see what aspects of the idea are still incomplete, where there might be a hitch that has to be considered to ensure the solution will work.

You’re known as a doer – many of your ideas are implemented and you have been involved in many spin-offs. What does the risk of failure mean for you?
The risk of failure is a very serious matter, and it’s always there wherever you go – for surgeons in particular this is a huge challenge every day. When a patient entrusts himself to me, he wants the operation to go well. For me this means I have to plan a lot to make sure the procedure is as safe as possible. And I also have to be aware that Plan A might have to be abandoned in the course of an operation and that an unpredictable moment may spontaneously necessitate a new Plan B.
In the course of my professional experience I have learned to cope with this. We have often tried to learn from other professional groups such as musicians, who also have to improvise. It can only enrich us all to think outside the box and to learn from other disciplines; in my case, that is art and the humanities above all.

And what does entrepreneurial risk mean for you?
This also requires courage. It took me a long time to venture taking this step for the first time. I have often found that outstanding and especially innovative medical ideas have hardly been taken up by industry. There are a wide variety of reasons for this: sometimes it is down to production processes that don’t fit, or there are logistical problems, and the regulatory approval processes are also often too protracted. I came to realize that we doctors and scientists need to find the courage to start companies ourselves if we do not want good ideas to land in the drawer. However, we then take an entrepreneurial risk that brings far-reaching strategies for action with it. For example, I first have to protect my idea before I go public with it. After the patent and the start-up, you then have to develop the product to market readiness and resolve the problems associated with this. Not least, and here lies a more complex part of the venture, you have to find investors who are prepared to provide financial support for a new development. But such investors of course also want to keep the risk as low as possible if they are to come in with several hundred thousand to a million francs. But ultimately, it is precisely the riskier ideas that are the really exciting projects.

Where does your enthusiasm for entrepreneurial risk come from?
You know, as a young doctor in Germany I developed my first idea for a product innovation. And when I presented this to experts, I was told no one needed it. Soon after that I attended a congress on medical imaging in Silicon Valley. There everyone congratulated me and encouraged me to pursue the idea. Eventually I found my partners in related subjects, such as mathematics and engineering. Leading research and cutting-edge technology can no longer be developed today in a monoculture. You need small and flexible, interdisciplinary teams of physicists, computer scientists, biologists, engineers and physicians for creative and quick solutions. There is enormous energy and dynamics here. It’s a culture that we have developed in Basel and taken almost to perfection. This is precisely the secret and the key to our success in the region. Such a culture needs sufficient space and time to develop and does not work as a solo effort – you always need a team.
I see my role increasingly in encouraging others, offering security and trust and also simply being present. Trust always rests on people, and you have involve yourself as a whole person. The partners feel this. I like being described as a door opener, but actually I only support the teams – they open the doors themselves.

And was this also the case with your last two coups: the MIRACLE project and the MedTech Fund MTIP?
Put simply, the MIRACLE project is about minimally invasive, computer-assisted, robot-guided bone cutting. The project is almost like a miracle. We are already world leaders in the use of laser technology to process hard tissue. In the next generation we want to work with flexible instruments directly in the body in order to make the procedures less stressful. I’m quite sure the MIRACLE project will have major significance for our society around 2050. Then there will be almost two million people aged over 65 in Switzerland. Greater life expectancy will bring an increase in age-related diseases due to wear and tear. The treatment of these diseases will require very complex technology and should not compromise the quality of life of patients. We therefore have to develop technologies with specific solutions for elderly people that allow the minimum possible invasiveness and rapid healing. With MIRACLE we will broaden the spectrum for surgical procedures and also make therapeutic measures accessible for elderly patients in relatively poor general health. At the same time, it will be possible to shorten the length of hospital stays and the subsequent rehabilitation phase.
It is our task today to research the basic principles that can deliver satisfactory results for the population in 30 or 40 years.
The special feature of MTIP is that the University of Basel and Basel University Hospital are partners in the fund. Both are sharing the entrepreneurial venture with us. I see this as a commitment that gives us courage and trust in science to continue down this path with industry.

Last year you made a highly regarded impression at the Lift Basel Conference that aroused a desire for more. What can visitors expect on the subject of Surgeon Superpowers this year?
We will present the Miracle project at the Lift Basel Conference 2015 and show the robot in Action. I very much hope that physicians will also be at the event and that we can dispel any reservations they may have about this technology. I believe it’s very important that we develop technologies out of our field, design them ourselves, keep them under our control and don’t place them unconditionally in the hands of industry. We will also present the latest 3D printing at the Lift conference. We already worked with this technology many years ago, when it found use in the automobile industry. I was one of the first to use 3D printing for medicine. Today we can produce individual implants from titanium powder that are better accepted by the body and are adapted to the needs of the patient. A third important issue is Big Data in medicine. We need cross-sectional images through the body for diagnostic purposes. These images contain an awful lot of information and we use only a small percentage of this – if any of it at all. Using today’s computing power we could process this data and use it, for example, for prophylaxis. We therefore intend to pay greater attention to Big Data here in Basel.

What other visions do you have for the region?
My vision is for the structures we are building up now to endure. I call the environment here a Medtech Innovation Hive. Beekeeping has been a hobby of mine for more than 30 years and I‘m fascinated by the way 40,000 individuals live together in a superorganism with a highly complex organization. For me the beehive is a source of inspiration and problem solving. And precisely for this reason I call our environment a hive, because like a bee population we need to be sensitive and flexible in the way we react to our environment. The research structures are like an organism which is in a state of constant change, can divide and grow, but is also vulnerable. In view of the high degree of interdisciplinarity, we need to develop new structures of cooperation. These will have an impact on industry, on the way a company is organized. And I’m sure these structures will also have an impact on universities. There are structures - such as the division into faculties - that are difficult to overcome. In Basel we have had help in resolving this problem with the establishment of departments. But in my opinion that is only an interim solution. At university level we need to find new ways to give structure and support to this form of research and facilitate a sustainable development for the future. And I’m delighted to have the privilege of playing a part in helping to shape this.

You came to Basel from Munich in 2002. Certainly a stroke of good fortune for Northwest Switzerland. And for you too?
I find very open people in Basel with whom I can discuss my ideas. And I appreciate the fact that Basel has a full university. For I believe there is an advantage in this that cannot be overestimated. In the Basel region we have not only a strong university, but also universities of applied science that are doing very good applied research. At the same time, we have very short paths of communication with the Federal Institutes of Technology in Zurich (ETH) and Lausanne (EPFL) and with EMPA and the CSEM. The triregional metropolitan region lends the Basel region a cultural diversity that we need to put our ideas into practice. I know many places in the world where people are engaged in innovation. And I’m convinced that something like a Silicon Valley for Europe can grow here – with impulses for the world and of similar consequence. And you talk of good fortune: yes, I do see it as a real stroke of good fortune that I can initiate and follow such a process together with i-net, the Swiss Innovation Park Northwest Switzerland, the university and university hospitals – I won’t get another chance like this.

Interview: Fabian Käser and Nadine Nikulski, i-net

*Professor Hans-Florian Zeilhofer heads the clinics for oral and maxillofacial surgery at the University Hospital Basel and the Cantonal Hospital Aarau, as well as the High-Tech Research Centre at the Department of Biomedical Engineering in the Faculty of Medicine, University of Basel. After studying human medicine, dentistry and philosophy, he trained as a specialist in oral and maxillofacial surgery and gained his postdoctoral qualification at the university hospital Klinikum rechts der Isar of the Technical University Munich. In June 2002, he joined the University of Basel. In 2004 he established and headed the High-Tech Research Centre at the University Hospital Basel. In 2005 he became the founding president of the annual International Bernd Spiessl Symposium for Innovative and Visionary Technologies in Cranio-Maxillofacial Surgery. Since 2013 he has been establishing the Med-Tech Innovation Hive in collaboration with i-net and the Swiss Innovation Park (SIP) Basel. Since 2007 he has been president of the Swiss Society of Maxillo-Facial Surgery. He has received numerous honours and awards for his innovative research work. He holds a number of international patents and has created several startup companies in recent years out of high-tech innovations from university research. Most recently he founded the new innovation platform Med-Tech Innovation Partners (MTIP) as a private public partnership together with the entrepreneur Felix Grisard and the manager Christoph Kausch with the involvement of the University of Basel and the University Hospital Basel.

Project «MIRACLE»

Webpage of MTIP

Department of Biomedical Engineering

Video of Hans-Florian Zeilhofer at Lift Basel Conference 2014

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«We benefit from many years of research in Basel»

08.07.2015

While Switzerland is innovation world champion in many rankings, promising innovations in the field of medical technology often lack the funding needed in Switzerland to get them to the market. The start-up investor MedTech Innovation Partners AG (MTIP) closes this gap.

CEO Christoph Kausch explains in the i-net interview what MTIP does differently from other investors and outlines the start-up projects that are especially interesting for his company.

MedTech Innovation Partners has recently established its presence in the market. How did this come about and why did you not take this step earlier?
Christoph Kausch*: About two-and-a-half years ago, the idea was conceived of bringing the work and research of Prof. Hans-Florian Zeilhofer together in a business model under the MTIP brand. This means that MTIP benefits from many years of research in Basel. Since then, the organization has developed and the concept refined. In short, we are strongly rooted in Basel thanks to our history and promote innovation here. Our work can help to prevent start-ups taking their good ideas abroad because they are unable to find the necessary funding and resources here.

And who are the people behind MTIP?
Apart from me, the core team includes Professor Zeilhofer, Head of the High-Tech Research Centre at the University Hospital Basel, who has been engaged in the field of medical technology throughout his career, and also the entrepreneur and investor Dr. Felix Grisard, who has been investing in medical technology for more than ten years. We have a strong team of board members and an equally top-class advisory board. Our skills range from medical technology and research expertise, through investor and entrepreneurial know-how to knowledge of how to manage innovation projects.

The MTIP board of directors is made up of highly renowned individuals. How were you able you motivate these people?
Until now there has not been a business concept anywhere in Switzerland with such strong links to research institutions. We are closing this gap in the market in order to promote innovations in Switzerland. The opportunity to play a part in this is very attractive.

MTIP promises to put the emphasis on sustainable development. What do you plan to differently from other funds?
Our integrated business model takes the long-term view; we are not in it to make a fast buck. We also make a contribution to society by reinforcing the power of innovation strength in Basel. What no other venture capital fund in this area possesses is our unique Swiss network and our excellent access to research institutions. At international level we are developing an “innovation ring”. For example, when we carry out a clinical trial for a start-up, we can do this much faster but to the same quality standard in collaboration with top-flight international partners. This shortens the time to market enormously.

What does MTIP expect in return from the companies you support?
A trusting collaboration and thus the people involved are very important to us. Intellectual property rights, such as patents or brands, must be clearly regulated before the technology can be developed further. We ourselves are a minority investor and strive for at least a 10 percent stake in a start-up. Our objective is to support the entrepreneur behind the company and to help him avoid the pitfalls that occur during the establishment of a company.

You write on the website that MTIP wants to get involved as early as possible and provide long-term support. For how long do you plan to support start-ups?
It’s somewhat easier here in Switzerland than elsewhere to get seed capital ranging from 100,000 to a million francs for the first round of financing. But what is incredibly difficult is the follow-up funding. This leads to many start-ups having to move away. So we also support the follow-up funding after the seed funding. To facilitate this, we join forces with other investors.

Medical technology is a very broad term. It encompasses everything from gauze bandages through implants and robot-assisted surgery to treatment and nursing. Where does MTIP focus its attention in this enormous range of options?
We have five focus areas: imaging, robotics/navigation, IT/big data management, medtech meets pharma and smart materials. This is where our core competencies lie, but this does not mean that we would exclude other areas. Interdisciplinarity is also very important. A model organization is the High-Tech Research Centre of Professor Zeilhofer, where different disciplines, such as IT, biology, engineering, the humanities, art and medicine, work together on finding the best solution for a medical problem. For it is not possible today to develop anything innovative in isolation.

You have experience yourself as a young entrepreneur. What are the biggest challenges for start-ups and how can MTIP help to overcome them?
In the case of start-ups in medical technology I see two big challenges. First of all, it is important to address the question of certification or regulatory approval early on. Secondly, young entrepreneurs have to take care from the outset that they already define a patent strategy when they are setting up the company. We can offer assistance here with established experts in the field.

MTIP has recently set up home in Allschwil at the Swiss Innovation Park of Northwest Switzerland. Is it your aim to collaborate with the technology and innovation ecosystem and to pool resources?
The whole Department of Biomedical Engineering and the High-Tech Research Centre of the University of Basel have just moved into the temporary premises in Allschwil. To ensure that the collaboration is efficiently organized in a spirit of partnership, we have also moved in there for the time being and are managing innovations and start-ups in this setting. Where we will be based in future has not yet been decided, but we are open to cooperation with the Swiss Innovation Park of Northwest Switzerland.

The search for venture capital in Switzerland is challenging and time-consuming, MTIP promises to make this easier. Are you overrun today by requests for funding?
The number of queries has doubled since we went public. Now we have to evaluate the best projects.

And what does a project have to offer in order to get support from MTIP?
An important point is innovation: we want to know what sets it apart from the state of the art so far. Another important question is whether it is a technology that can be protected by a patent or a trade secret and what market potential the project offers. We place great value in particular on a good management team: if competencies are lacking, we are happy to help in the search for suitable employees. Traditional venture capital companies invest their money and wait for the exit of the company.

Where do you see MTIP in five years?
The aim is to have a presence in Switzerland with a very good portfolio of start-ups. An organization like i-net can play an important role for MTIP and it would be great if the shared network idea could lead to new projects.

Interview: Fabian Käser and Nadine Nikulski, i-net

*Christoph Kausch has a sound knowledge of strategic management and experience in bringing innovations to market. Before founding MTIP, he led the global strategy department of Syngenta for several years. Prior to this, he was Managing Director at Hafiba AG, a boutique investment company, where he is still a member of the board of directors. He started his career at McKinsey & Company where he had specialized in private equity and life sciences.

Christoph Kausch studied mechanical engineering at the TU Munich and at the Massachusetts Institute of Technology Management (MIT) in Boston. He completed his PhD in innovation & technology management at the University of St. Gallen and at Harvard Business School.

About MedTech Innovation Partners AG
MedTech Innovation Partners (MTIP) headquartered in Basel, is an early-stage investor focusing on health technologies. MTIP offers more than traditional venture capital, delivering access to business building expertise, a systematic approach to intellectual property management, recruitment and a unique interdisciplinary culture for the entrepreneurs and start-ups that MTIP works with.
A local network which consists of well-known Swiss universities and research centres specializing in medtech, gives MTIP an early access to research outcomes. Furthermore, an international innovation ring offers scientists and entrepreneurs ideal conditions for bringing innovations to market.
Website of MTIP

 

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Industry 4.0 – what’s the impact on other sectors?

28.01.2015

On January 22, 2015, NZZ published a very interesting set of articles about the silent revolution in industry and production: industry 4.0 is the digital interlinking of production and value chains (see links below).

The revolutionary phases in industrial production were the introduction of the steam engine and water power, which allowed mechanized fabrication (industry 1.0), the invention of the conveyor-belt, which allowed mass production (industry 2.0), and computers and robots, which enabled automated production (industry 3.0). And today, the next industrial revolution is enabling the physical and virtual systems to be merged through the internet of everything (industry 4.0). The results of digital production are the vertical interlinking of intelligent production systems (smart factories) and the horizontal integration of global value chains, including suppliers and customers.

The sensing of everything becomes reality – not only in production, but also in mobility (self-driving car), in health (quantified self), in logistics (real-time tracking) or in finance (high-frequency trading). But this is only the tip of the iceberg. Sensing and listening (in terms of data exchange) will inform every aspect of what we do. But how do we get the essentials from the vast, unstructured data and how can we benefit from this becoming more effective, more sustainable, more innovative, improving safety, reducing risks and finally improving our habits?

Apart of sensors and data storage, we also require smart brains and emulation power, such as lateral thinking, lean management (bad processes remain bad, even if they become smart through the latest technology) and expert systems (smart and self-learning algorithms based on large data sets, which make decisions without human interaction). The future is bright; some potential advantages include the prediction of failure and conflicts (and thus hopefully their prevention), the personalization of products, services and therapies, automatic maintenance, self-organized logistics, the share economy, energy efficiency in all aspects of our life and so on.

The threats and challenges are also enormous: Data privacy, protection against industrial espionage, data security measures, data banking and so on. Sound solutions are required. We have a lot of opportunities in Switzerland from the internet of everything and expert systems, not only in industry, but in all manner of applications for our daily life. Swiss data banking and Swiss secure cloud are two such potential opportunities. Learn about more the opportunities from the i-net Technology Trend Forum and the i-net technology and business related events.

Related NZZ articles:
«Das Internet kommt in die Fabrik»
«Evolution statt Revolution»
«Auf dem Weg in die Arbeitswelt 2.0»

i-net related information:
Article about the i-net Tech Trend Forum
List of i-net Events

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