From the Lab to the Market: What Biotech Commercialization Looks Like from the Perspective of an Incubator

Your incubator specializes in biotechnology. Could you first outline the specific characteristics associated with this field?

There are indeed many differences compared to other areas of business. For example, I would mention the speed of revenue generation. In other industries, this is a key criterion for assessing the value of a project. However, in the development of new drugs, this question doesn't make sense. The project is meant to be sold to a pharmaceutical company while it's still far from commercial success. The value of these projects is therefore assessed based on entirely different criteria.

Other specifics involve meeting strict regulatory conditions that ensure the safety and efficacy of the developed products, medical devices, or in vitro diagnostics. Therefore, we sometimes advise our startups to consider collaborating with an industry partner experienced in regulatory processes. This can save a lot of time and money. The same applies to distribution channels, which cannot be built overnight. Also worth mentioning are the higher initial investments required for equipping a top-notch laboratory.

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i&i Prague supports scientific startups in the early stages of their development. Could you describe how this process works?

The first step is market need analysis. We examine whether the technology solves a problem that is currently unresolved. If so, we then assess the uniqueness and the possibility of intellectual property protection. Next comes the agreement with the originators of the technology on commercialization. There are two options – we either offer it for direct licensing, or we decide to establish a startup, which will secure investment and bring the development to the point where the technology is either commercially viable or saleable to a strategic partner.

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If the decision is made to go with a startup, which is your area of expertise, what needs to be done to convince an investor? Without an investor, the startup will not last long.

That’s true. For a startup to secure initial investment, it must demonstrate that it has a technology aimed at a product with market potential – something that people or companies will be willing to pay for. If a startup is developing medical technology, it should seek feedback from doctors and, if possible, from a relevant industry contact. This market validation should occur early, before more extensive development begins, to avoid unnecessary dead ends.

Investors also focus on intellectual property protection, which must be secured so that competitors cannot easily take over the technology. The startup team is also crucial – the members must be fully committed to the project and have the necessary skills. And, of course, the quality of the business plan is important to investors as well.

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From what you've said so far, it seems like a very demanding and sophisticated process. Why should a young scientist even go down this path?

There are two main motivations. The first is humanitarian – science should help people and society. The results of scientific work, if they remain solely in the realm of academic science, can inspire further research but will not help anyone in a real way until they reach the market as actual products. The second motivation is experience. Working in a startup provides people with invaluable knowledge that continuously moves them forward. In Germany or Austria, these individuals are among the most valuable on the job market.

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You often work abroad. Can you describe how we are doing in this area compared to the developed world?

It probably won’t surprise anyone that we are behind countries like Germany, Austria, Israel, or the USA. However, this lag can paradoxically be an advantage because we have the opportunity to be inspired by different systems. While it's not possible to take only the best from each country and create something entirely our own, we have a chance to create a thoughtful system that avoids the mistakes of others.

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What would you personally bring to the Czech Republic?

There are really many insights, but I would especially mention two: the approach to problems and the willingness to collaborate. In Scandinavia or Israel, the approach to business and innovation is much more positive. It would be great if we could also learn to see problems as challenges to overcome and have the State here to help, not to place obstacles.

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In the scientific world here, unfortunately, business is still often seen as a betrayal of science, which needs to change. Additionally, it’s essential that scientists are willing to listen and be open to collaboration with experts from other fields.

 

What is needed to successfully connect these different worlds?

It’s about understanding the different mindsets. For example, aligning expectations regarding transparency and intellectual property protection. Academic institutions have an obligation to disclose contracts and publish results, which may conflict with the caution and need for strict intellectual property protection in the business world. Long-term stability of cooperation is also important, which can sometimes be a challenge in dynamically changing teams.

 

Properly setting up relationships and achieving balance is not easy, but it’s essential for successful collaboration.

How can this be achieved?

That is one of the tasks for companies like ours. Sometimes I jokingly say that working in our incubator requires not only a scientific and business background but also translator skills to ensure proper communication between the academic community and industry.

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Author: Martin Kovalčík