Phase II: MaRS Goes Global
LQ: Alexandria is well-established in the tech and biotech development sectors in other North American cities — Boston, San Francisco, New York, for example. What are the major strengths and weaknesses that you see here in Toronto?
JHR: As I noted in my remarks during the June MaRS/Alexandria media event, Alexandria’s extensive involvement in each of the most significant science and technology clusters in North America has given us the unique ability to accurately assess and evaluate the elements that make a cluster truly world-class. Although the characteristics and components vary greatly, they essentially fall into four categories — science, talent, capital and location. Toronto clearly has the depth, breadth and history of scientific research and innovation and the associated intellectual capital to place it on par with any world-class cluster. Moreover, the diverse culture and quality of life in the larger metropolitan region, combined with the extraordinarily dense academic, clinical and institutional presence in the Discovery District, are consistent with the attributes present in San Francisco, Cambridge andNew York City. The biggest challenge we see, currently, is related to entrepreneurial capital, which provides the fuel for innovation and the commercial acceleration of research from the bench to the bedside or market.
LQ: How do you see the MaRS/Alexandria alliance overcoming some of those weaknesses?
JHR: One of the primary objectives of our strategic alliance is to provide MaRS with access to a broader and deeper international network. As noted, most of the critical ingredients for a primary world-class cluster are already resident in the Toronto metropolitan area. The MaRS initiative has appropriately and purposely focused on accelerating translation and commercialization. The broader exposure of the opportunities available in the Discovery District to our deeper network is intended to draw intelligent risk capital to the region. Further, Alexandria will be integrating into Phase II some of the proprietary commercial growth engines that we have successfully developed elsewhere. We believe that a unique and exciting phenomenon of cluster growth is the ability for early successes to attract outside attention and resources. As the efforts of the MaRS/Alexandria alliance are realized in the form of preliminary success and achievement, resources currently external to the market will be drawn to this diverse and innovative region.
LQ: What are the aspects of the MaRS model of convergence innovation that appeal to Alexandria?
JHR: Simply stated, MaRS “gets it”. The leadership understands what is necessary to thrive in a complicated and evolving health–
care environment. It acknowledges both its strengths and its weaknesses while proactively and relentlessly attempting to innovate. The use of the extraordinary College/University location to mine and optimize the assets resident in the Discovery District through collaboration, aggregation, integration and acceleration through an open community–based platform is truly unique. MaRS is one of the first entities in the world whose purpose is to foster collaboration within the sciences in order to promote innovations that will eventually lead to better technologies and therapies for the community. As we travel around the world, we are consistently impressed with the recognition of the MaRS brand.
LQ: Canadian and Ontario leaders have created a number of funding vehicles to boost the research enterprise in the last decade or so. How important is a development like this in furthering recruitment and retention efforts?
JHR: Critical. The cornerstone of the United States’ worldwide leadership in drug development and commercialization is the decades of investment by the federal government in basic research. Consistent and significant financial investment from the federal and provincial governments will be essential for the long–term growth and viability of the science and technology sectors in Canada. In the short term, this is more germane for organic growth and retention of existing intellectual assets. As this growth and development diversifies and expands around the Toronto hub, immigration will become a more natural and consistent phenomena.
LQ: I understand that Alexandria has employed a strategy of selectively investing in companies, both directly and indirectly. Do you see extending that activity to Ontario?
JHR: As indicated in your question, our relatively modest investments are very selective and purpose–driven. Above all, we are a REIT and not a venture capital company. That said, over the past decade we have found it advantageous to make strategic investments that are aligned with our broader objectives. For example, as a co-founder and creator of the Accelerator in Seattle, we combined our diverse resources with several top–tier VC firms to form an entity that has started a number of novel breakthrough companies in less than four years. Going forward, we envision the cooperative development of unique investment platforms that similarly align with the strengths resident in Ontario. The primary and driving objective, however, will be the enhancement of commercial activity.
LQ: Some people may think of Alexandria as strictly a North American developer. What are your plans in Europe and Asia?
JHR: We see our business as a global enterprise. Clearly, the multinational pharmaceutical companies are aggressively pursuing this tack, as are most of the more established technology operators. The cluster characteristics that I previously described are not constrained by geographic boundaries and, as such, neither is ARE. In fact, we recently announced a 1.4 million square foot multi-building, multi-year project adjacent to the University of Edinburgh in Scotland. Additionally, we have commenced with our first project in China through a venture with a European pharmaceutical company. Our plan is to continue to extend our global reach as we identify similar opportunities in which we can express the value of the ARE brand to benefit all of the stakeholders.
LQ: Strategic alliances with media are another interesting avenue for Alexandria. Tell us about your new partnership with the Nature Publishing Group.
JHR: Alexandria and Nature share an invaluable characteristic — a worldwide, recognized brand within our industry. We have developed a strategic alliance with Nature to exploit our unique collective position in a complementary manner. While we are pursuing several cross-over initiatives, at their core, our joint activities will serve to blur the lines between the virtual and physical worlds in which our stakeholders operate. I am personally very interested in incorporating the pioneering collaboration and integration strategies that MaRS has developed into our alliance in a meaningful way. Stay tuned.
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BROWSE PAGES
- MaRS Convergence: Spring 2008
- MaRS Convergence: Fall 2007
- Artists Converge at MaRS, too
- Flagship Program Supported
- Advancing Regenerative Medicine
- Governator Pumps Up Research
- Pain Research Attracts Financing
- Not Just a Pretty Façade
- Phase II: MaRS Goes Global
- Toronto Lures Florida
- Venture Capital Moves to MaRS
- Tenant Profile: Octopz
- Social Innovation Network to be Anchored at MaRS
- MaRS Convergence: Winter 2006/07
- MaRS Convergence: Fall 2006
- MaRS Convergence: Winter 2005
