Chemistry without borders : careers, research, and entrepreneurship 9780841231290, 084123129X, 9780841231283

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Publication Date (Web): August 17, 2016 | doi: 10.1021/bk-2016-1219.fw001

Chemistry without Borders: Careers, Research, and Entrepreneurship

Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

Publication Date (Web): August 17, 2016 | doi: 10.1021/bk-2016-1219.fw001

Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

ACS SYMPOSIUM SERIES 1219

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Chemistry without Borders: Careers, Research, and Entrepreneurship H. N. Cheng, Editor U.S. Department of Agriculture, Agricultural Research Service New Orleans, Louisiana

Agnes M. Rimando, Editor U.S. Department of Agriculture, Agricultural Research Service University, Mississippi

Bradley D. Miller, Editor American Chemical Society, Washington, DC

Diane Grob Schmidt, Editor 2015 President, American Chemical Society, Washington, DC

Sponsored by the ACS Committee on International Activities

American Chemical Society, Washington, DC Distributed in print by Oxford University Press

Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

Publication Date (Web): August 17, 2016 | doi: 10.1021/bk-2016-1219.fw001

Library of Congress Cataloging-in-Publication Data Names: Cheng, H. N., editor. | American Chemical Society. Committee on International Activities. Title: Chemistry without borders : careers, research, and entrepreneurship / H.N. Cheng, editor, U.S. Department of Agriculture, Agricultural Research Service, New Orleans, Louisiana [and three others] ; sponsored by the ACS Committee on International Activities. Description: Washington, DC : American Chemical Society, [2016] | Series: ACS symposium series ; 1219 | Includes bibliographical references and index. Identifiers: LCCN 2016029726 (print) | LCCN 2016030013 (ebook) | ISBN 9780841231290 | ISBN 9780841231283 () Subjects: LCSH: Chemistry--Research--International cooperation. | Chemists--Vocational guidance. Classification: LCC QD40 .C45375 2016 (print) | LCC QD40 (ebook) | DDC 540.23--dc23 LC record available at https://lccn.loc.gov/2016029726

The paper used in this publication meets the minimum requirements of American National Standard for Information Sciences—Permanence of Paper for Printed Library Materials, ANSI Z39.48n1984. Copyright © 2016 American Chemical Society Distributed in print by Oxford University Press All Rights Reserved. Reprographic copying beyond that permitted by Sections 107 or 108 of the U.S. Copyright Act is allowed for internal use only, provided that a per-chapter fee of $40.25 plus $0.75 per page is paid to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA. Republication or reproduction for sale of pages in this book is permitted only under license from ACS. Direct these and other permission requests to ACS Copyright Office, Publications Division, 1155 16th Street, N.W., Washington, DC 20036. The citation of trade names and/or names of manufacturers in this publication is not to be construed as an endorsement or as approval by ACS of the commercial products or services referenced herein; nor should the mere reference herein to any drawing, specification, chemical process, or other data be regarded as a license or as a conveyance of any right or permission to the holder, reader, or any other person or corporation, to manufacture, reproduce, use, or sell any patented invention or copyrighted work that may in any way be related thereto. Registered names, trademarks, etc., used in this publication, even without specific indication thereof, are not to be considered unprotected by law. PRINTED IN THE UNITED STATES OF AMERICA Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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Foreword The ACS Symposium Series was first published in 1974 to provide a mechanism for publishing symposia quickly in book form. The purpose of the series is to publish timely, comprehensive books developed from the ACS sponsored symposia based on current scientific research. Occasionally, books are developed from symposia sponsored by other organizations when the topic is of keen interest to the chemistry audience. Before agreeing to publish a book, the proposed table of contents is reviewed for appropriate and comprehensive coverage and for interest to the audience. Some papers may be excluded to better focus the book; others may be added to provide comprehensiveness. When appropriate, overview or introductory chapters are added. Drafts of chapters are peer-reviewed prior to final acceptance or rejection, and manuscripts are prepared in camera-ready format. As a rule, only original research papers and original review papers are included in the volumes. Verbatim reproductions of previous published papers are not accepted.

ACS Books Department

Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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Preface This book is based on two symposia—one held at the 2015 ACS Spring National Meeting in Denver and one held at the 2015 ACS Fall National Meeting in Boston. These symposia are part of the Presidential-sponsored or recommended symposia series related to ACS International Activities. Both symposia share a common theme - “Chemistry without Borders.” The two symposia were: 1) “The Transnational Practice of Chemistry and Allied Sciences and Engineering: Study, Research and Careers without Borders” (Denver symposium); 2) “International Entrepreneurship: How to Start a Business and Thrive in the Global Marketplace” (Boston symposium). A total of 19 chapters are included in this book with contributions from most of the speakers from the two symposia. For convenience, this book is divided into two sections: 1) Transnational Study, Research and Careers, 2) International Entrepreneurship. Chapter 1 is an overview chapter that summarizes the contents of all the chapters and also provides a summary of many ongoing programs and activities at ACS International Activities. An additional chapter on the Global Innovation Imperative forum held in Singapore in 2014 is included as a good example of international collaboration, education, and research efforts. This book is targeted for all scientists and engineers, particularly chemists, biochemists, chemical engineers, and others in chemistry-related professionals and students. Because the emphasis of this book is on internationalization and globalization, anyone interested in the global aspects of the chemistry enterprise will find the book useful. The topics include future chemistry curriculum, global preparedness of students, international education exchange and research opportunities, study-abroad programs, and international research collaborations. In addition, many of the resources available at the ACS given in Chapter 1 may be particularly useful. People working in industry or in small businesses may be interested in the International Entrepreneurship chapters. They contain valuable ideas, suggestions, and perspectives from thought leaders and successful entrepreneurs in the global chemistry enterprise. Those who contemplate starting their own businesses should certainly consult these chapters. We appreciate the efforts and the patience of the authors who took time to prepare their manuscripts and the many reviewers for their cooperation during the peer review process. Thanks are due to numerous colleagues for their help, support, and collaboration. Particular thanks are due to Bradley Miller, Lori Brown, and Judith Benham for their efforts in organizing the “Transnational Practice of Chemistry” symposium, and to H. N. Cheng and Agnes Rimando for organizing the “International Entrepreneurship” symposium. Additional assistance was provided by Steven Hill and Patricia Kostiuk in the ACS Office of xi Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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International Activities. Special mention may be made of James Baker and John Brodish, who transcribed recordings of many presentations into text, and Alvin Collins who supplied the video presentations. We also thank Arlene Furman, Elizabeth Hernandez, and Bob Hauserman at ACS Books for their efficient handling of the manuscripts. The encouragement and continuing support of Tom Connelly and Denise Creech are also much appreciated.

H. N. Cheng Southern Regional Research Center USDA – Agricultural Research Service 1100 Robert E. Lee Blvd. New Orleans, Louisiana 70124

Agnes M. Rimando USDA Agricultural Research Service P. O. Box 8048, University, Mississippi 38677

Bradley D. Miller Office of International Activities American Chemical Society 1155 Sixteenth Street, N.W. Washington, DC 20036

Diane Grob Schmidt 2015 ACS President American Chemical Society 1155 Sixteenth Street, N.W. Washington, DC 20036

xii Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

Chapter 1

Chemistry without Borders: An Overview

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H. N. Cheng,*,1 Agnes M. Rimando,2 Bradley D. Miller,3 and Diane Grob Schmidt4 1USDA

Agricultural Research Service, Southern Regional Research Center, New Orleans, Louisiana 70124, United States 2USDA Agricultural Research Service, P. O. Box 8048, University, Mississippi 38677, United States 3Office of International Activities, American Chemical Society, 1155 Sixteenth St., N.W., Washington, DC 20036, United States 4Department of Chemistry, University of Cincinnati, 301 Clifton Court, Cincinnati, Ohio 45221, United States *E-mail: [email protected].

As chemistry becomes more globalized, it is important for chemistry-related organizations to be interconnected and adaptable. It is equally critical for individuals to be flexible and adaptable, and to keep up with changes and the latest scientific findings. Many of the challenges and opportunities of globalization are in the areas of jobs, research, education, and innovation. It is useful to know what knowledge and skill sets are needed for the jobs in the future, whether students are properly trained for the globalized environment, and if we have the chemical workforce needed to satisfy future needs. A related question involves innovation and entrepreneurship, because they are the key engines for future economic growth. It is helpful to identify the global trends and drivers for entrepreneurship and innovation, and understand the factors that accelerate and hinder international entrepreneurship and innovation in chemistry. An overview of these issues is provided in this article, which summarizes the perspectives from some of the experts in global chemistry research, education, and entrepreneurship. These experts were invited speakers at two ACS presidential symposia in 2015, and they contributed chapters to this book. To

© 2016 American Chemical Society Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

support ACS global interests, the ACS International Activities Committee and the ACS Office of International Activities have been working hard to advocate, catalyze, initiate, and implement ACS activities, conferences, and initiatives pertaining to international education, research, scientific understanding and appreciation of chemistry. For the benefit of readers, this article also provides a summary of some of the current ACS activities in the international arena.

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Transnational Study, Research, and Careers Every year, thousands of chemistry and related science and engineering students, researchers and professionals head overseas to work, study, and teach. They do so as part of job placements and company assignments, postdoctoral and visiting scholar research, sabbaticals, invited lecturing, conference attendance, exchange programs, and research collaboration, to name a few. These activities are often further stimulated and sustained by web-based interactions. The scientific contribution of this emerging ‘transnational chemical practitioner’ will be increasingly key to the worldwide success of chemistry and related sciences and engineering and to the U.S. as it strives to remain competitive in a global economy. Work- or study-abroad experiences provide personal and professional fulfillment, and they are becoming more and more essential in today’s world economy. Proceedings from a NATO/National Academies workshop on international mobility of scientists and engineers (1) recorded that the greatest worthwhile international mobility is in the natural sciences - including chemistry - as scientists in this area have a strong affinity for the scientific approach and are knowledgeable about where to go, what to do, and with whom to collaborate to enrich their science. In 2012, the journal Nature conducted a survey of its readership on global scientific migration (2) to identify underlying trends in scientists’ movements, investigate what is driving them, and explore how they may change. Among the findings, Nature found that while science has always had a global culture, it is now enmeshed in a global marketplace where knowledge generation and research constitute a borderless enterprise. Further global trends were reported by Judith Benham (3), who cited U.S. National Science Foundation (NSF) data to show that many Asian countries have notably boosted their expenditure in scientific research in the past 20 years. Moreover, there has been an increase in international research collaborations; thus, internationally coauthored articles have grown from 16% to 25% from 1977 to 2012. In the global business environment, the following competencies are considered useful: ability to manage diverse employees, understanding international markets, ability to work in multiple overseas locations, foreign language skills, and cultural sensitivity. She noted that the ACS International Center™ is a valuable resource for people in search of international collaborative research or international exchange and educational opportunities. 2 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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In his chapter (4), Joe Francisco asked the question, “What we can do as chemical educators to better prepare tomorrow’s chemists for competition in the global marketplace?” He pointed out that educators need to collaborate with leaders and recruiters in the global chemical enterprise to identify the essential skills students will need in the future. To help students develop these skills, educators may need to develop new curriculum and teaching methods to encourage a deeper, more significant conceptual understanding of chemistry. Teacher training should also be emphasized at the graduate level. He also highlighted the importance of increasing the international opportunities for women in academia and the awareness of U.S. students of the world’s social and cultural diversity. In another chapter, Jay Siegel (5) described his perspectives and experience as the Dean of the School of Pharmaceutical Science and Technology (SPST) at Tianjin University. Despite the challenges of working with a culturally diverse student and faculty population, he has been successful in developing an internationally recognized research institution at SPST. The school recruited a distinguished collection of international talent, instituted a curriculum with courses taught in English, and admitted students not only from China but from other English-speaking countries. For its faculty, the school decreased the required number of in-class teaching hours and courses in favor of increased hands-on and experimental learning opportunities. It is a good example of an innovative international center of excellence in China. From his extensive experience in corporate management, Tom Connelly (6) provided valuable insight on innovation, globalization, and organizational changes needed for a global company. In his chapter, he pointed out the need to break out of the traditional industry-customer innovation model to adopt an exchange model, involving industry, customers, national laboratories, universities, and venture capital-backed startups. The organizational model may also evolve from a dependent model to an independent, and finally to an interdependent model. It is important for corporate teams to think globally and to work across boundaries. In her chapter, Angela Diaz (7) provided advice for individual scientists on how to succeed in the global workplace. She noted the importance of building relationships coupled with the use of seven tools: agility, balance, collaboration, diversity, integrity, respect, and teamwork. Students today need to have broadly based training and a greater awareness of global trends. Institutions of higher education, working in collaboration with government, industry, non-profits, and professional societies, are critical for building the global readiness of our workforce. Deva Hupaylo (8) works for the Organisation for the Prohibition of Chemical Weapons (OPCW), and in her chapter, she described her experience in international science diplomacy. She indicated that the same principles that define good science also serve as the foundation for good international relations. They include: thorough knowledge of the subject, objective analysis, honesty, good communication, and openness to new ideas. It is important to use scientific principles as a guide when bringing together scholars in politics, science, and strategy to plan the structure of a long- term global community. Cross-disciplinary 3 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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studies, cross-continent exposure, and cross-cultural understanding can synergize science as well as politics. One of the ongoing challenges of the global chemistry enterprise is the availability of clean water. One of the current ACS international programs is the Global Innovation Imperatives (Gii), which provides a forum to review and document existing water situations around the world and recommend solutions. In the chapter by Ellene Contis (9), she described a successful Gii meeting in Singapore in 2014 held in collaboration with the Singapore National Institute of Chemistry. The aim of the meeting was to present research, discuss current and future approaches, and conduct site visits of water treatment plants. This program is a good example of the synergies that can result at the confluence of international collaboration, research, education, and applications. As the chemical job market is increasingly globalized, it is useful for ACS members and students to have at least some degrees of international awareness and competency. In his chapter, Brad Miller (10) compiled a bibliography of key articles relating to international education and exchange. A large number of articles were found, confirming the relevance and importance of international education today. These articles will be useful resources for people interested in delving deeper into this topic.

International Entrepreneurship The wealth of a nation depends on a large number of factors, including productivity, allocation of resources, optimization of business activities, innovation, and entrepreneurship. It is often the latter two factors, innovation and entrepreneurship, that provide a nation with a competitive advantage. Whereas some of the fields within chemistry are or have reached maturity, other areas are still growing, and opportunities are rife for the prospective chemistry entrepreneur. We have a need in the scientific enterprise to encourage and to help entrepreneurs to start their businesses and to thrive. With increasing globalization, many businesses are now becoming international, and there are many opportunities overseas for U.S. entrepreneurs. At the same time, exciting possibilities exist for alliances and collaborations with international entrepreneurs (11, 12). In this book, 10 successful entrepreneurs and thought leaders provided their perspectives and advice on international entrepreneurship. The main questions they aimed to answer are: 1) What are the trends and drivers for entrepreneurship and innovation in science and technology? 2) What role does international engagement play in their fulfillment? 3) What factors accelerate and hinder international entrepreneurship and innovation? 4) What is the role of ACS to adapt, further, and sustain international entrepreneurship and innovation for the benefit of its members and the global chemistry community? In his chapter, Joe DeSimone (13), who is both an eminent scientist and entrepreneur, discussed his experience translating academic research into products for the commercial market. Innovation can be classified as something that improves efficiency, or is sustaining or disruptive. A good strategy for promoting innovation is to work at the convergence of different fields. He emphasized the 4 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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benefits of academic entrepreneurship, noting that academics can potentially use their research as a platform to help build a new business. At the same time, taking on the role of entrepreneur improves the academic person’s skills in research, funding, organization, and communication. Alexander Sachse and Javier Garcia (14) are both successful entrepreneurs, and in their chapter, they put together a very useful guide for the chemistry entrepreneur. Their tutorial covers the importance of having a viable business idea, identifying potential competitors, securing intellectual property protection, formulating a business plan (where the Lean Launch Pad™ program was recommended), and having a sound financial structure (including cost and revenue streams). They presented a case study of Rive Technology as an example of a successful business creation. Jo Shen (15) used to work for Syntex and struck out on her own when Syntex was acquired by Roche. In 1997, she raised $100 million and started an active pharmaceutical ingredient (API) company, ScinoPharm, in Taiwan. With support from the local investors and staff members, she and her colleagues established a global business and successfully entered the highly regulated pharmaceutical markets. In her chapter, she outlined the challenges facing a new international business and described how her company thrived. Based on her experience, startup excitement is not only for the young and fearless; older scientists can also enjoy it. Sundeep Dugar (16) has a track record of discovering new drugs and starting new pharmaceutical companies. In the chapter that he coauthored with Abhinav Dhandia, they pointed out that big pharma’s conventional R&D model has relied on a blockbuster strategy – which is dependent upon a major drug discovery and development breakthrough capable of delivering billion-dollar revenues. The alternative R&D model needs to be scalable, such that most costs are variable and only a small fixed cost and capacity structure are maintained. To be successful on the international front, an entrepreneur must be able to engage in creative out-of-the-box thinking, and remain attentive to compliance. Thais Guarantini (17) is the founder of a successful pharma business in Brazil. In the 1980s, Brazil provided incentives to increase innovative activities. As described in her chapter, she and her partners worked with universities to get products from technology transfer offices and gained the support of Brazilian funding agencies. After seven years, the company has overcome challenges and is now known as a knowledge-intensive service business. It acts as a facilitator, carrier, and source of innovation, interacting symbiotically with clients, and providing scientific solutions to pharmaceutical, veterinary, and cosmetic industries in Brazil. In his chapter, Sudhir Nambiar (18) provided an excellent summary of the growth of the pharma business in India. He noted that after its independence in 1947, India had an urgent need to offer affordable medicine to its people. Generic drugs became popular, and several successful companies grew. They started to collaborate with multinational companies and then entered into international markets, such as the U.S. This industry has now enjoyed a cumulative average growth rate of around 14% during the past five years. He works for Dr. Reddy’s Laboratory, which is successful as one of the largest API producers in the world. 5 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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Frank Jaksch (19) started his own business at age 30 and built a successful international company. In his chapter, he noted that there are two styles of entrepreneurs: the “founders” and the “joiners,” and both types are needed. As a rule, “founders” are significantly more risk-tolerant and have a stronger interest in management, whereas “joiners” are more interested in functional work activities, such as research and development. At his company, his business model is to scour the world for technology, cherry pick valuable intellectual property, and then commercialize appropriate novel technologies. In 1979, Sharon Vercellotti (20) founded V-labs, Inc., which specializes in carbohydrates and provides valuable products and services to the carbohydrate community. Through a global partnership, she has built a network to supply researchers with rare, complex carbohydrate structures which are authentic standards in analytical instrumentation, enzymology, and immunology. In her chapter, she described some of the challenges she faced over the years and how she managed to overcome them. As the director of the Alabama Innovation and Mentoring of Entrepreneur (AIME) Center, Dan Daly (21) has successfully instructed students, professors, and staff on the basics of forming start-up companies. In his chapter, he recommended the formation of prototypes and Minimal Viable Products (MVP) as a milestone in the commercialization of an invention. He also pointed out that The Lean Launch Pad™ program can be used to help with business planning. Another point: collaboration with international companies may help start-up companies expand their product offerings at minimal cost. He provided three examples of start-ups with which his center has worked. In her chapter, Judith Giordan (22) noted different factors that contribute to STEM venture success. She also discussed the challenges facing researchers who wish to become innovators or entrepreneurs. She described the role of universities and the role that existing corporations do and could play in fostering and commercializing market-inspired research, especially if an entrepreneur contemplates cashing out of a new venture. To build a start-up in science, a scientist needs to have the skills to tailor his or her research to meet market needs, and the ability to communicate, negotiate, and lead.

ACS International Activities In view of the increasing globalization of the chemistry enterprise, ACS is making a great effort to help its members work effectively and knowledgeably within a competitive global workforce and economy and develop networks for their enduring professional success. In its Constitution (Article II, Sec. 3), ACS is committed to “cooperate with scientists internationally and be concerned with the worldwide application of chemistry to the needs of humanity.” To support ACS global interests, the ACS International Activities Committee (IAC) (23) and the ACS Office of International Activities (OIA) (24) have been working hard (and working together) to advocate, catalyze, initiate, and implement programs and activities pertaining to international education, research, scientific understanding, and appreciation of chemistry. They aim to be indispensable 6 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

resources advising and helping ACS members and staff in the international arena and also communicating, coordinating, and cooperating with other professional organizations worldwide. The following account summarizes some of the major programs being conducted by ACS International Activities. 1. International Education and Research Opportunities

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ACS International Center™ The ACS International Center (IC) encourages, engages, and supports international exchange of scientific information at all levels (25). The target audience for the IC includes science practitioners at various stages of their careers - students, faculty, professionals, entrepreneurs, and more. The IC website seeks to be relevant for U.S. practitioners seeking opportunities abroad, foreign practitioners seeking to collaborate with American researchers, as well as third-country national scientists (citizens of one country, studying/working in another and seeking to collaborate with a third). Currently, the ACS International Center has gathered information on over 600 programs across 16 geographic regions (including one for ‘global’) and six career experience levels. More information is available on the International Center website (25).

International Research Experience for Undergraduates ACS International Research Experience for Undergraduates (IREU) program (26) is funded by the Office of Integrative Activities and the Division of Materials Research at the U.S. National Science Foundation (NSF). This program takes a non-traditional approach by connecting U.S. students with undergraduate research experiences throughout Germany, Italy, Singapore, and the U.K., while reciprocally, at no cost to the U.S. funding agencies, placing students from these countries in U.S. chemistry and materials science sites. For 2014-2015, 17 U.S. students per year from diverse ethnic and cultural backgrounds and from institutions with limited access to research facilities are recruited nationally to participate in the ten-week IREU program. The program also provides international students the opportunity to join U.S. REU sites with material support from their home institutions.

ACS Pittcon Travel Grants With generous support from the Society for Analytical Chemists of Pittsburgh (SACP), the Pittsburgh Conference on Analytical Chemistry and Applied Spectroscopy (Pittcon), and the Wallace H. Coulter Foundation, the ACS Office of International Activities has coordinated logistics for this annual program since 1995 (27). In 2015 fourteen early career chemists from Central America and the 7 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

Caribbean attended the Pittcon conference on March 8-12. The 2016 delegation will feature scientists from the Baltic States and the Balkans, and the 2017 program will focus on scientists from Mexico and South America.

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Global Chemists’ Code of Ethics With funding from U.S. State Department, ACS International Activities will plan, organize and implement a seven-day workshop with the objective for participants to develop a Global Chemists’ Code of Ethics (GCCoE) in 2016. Using its network of leaders in chemistry from around the world, it will work with Pacific Northwest National Laboratories, partner chemical societies, and the U.S. Department of State priority nation representatives to organize this workshop. The deliverables include the official GCCoE and certificate; a handbook containing training materials; and a toolkit for future facilitators of code of ethics training and ceremonies. All of these materials will be made publicly available in several languages. This ensures the sustainability and future reach of the GCCoE.

2. International Outreach Building Opportunity Out of Science and Technology (BOOST) ACS International Activities has been funded by the U.S. State Department in 2013 (for Indonesia and Malaysia) and 2015 (for Thailand) to organize the BOOST program. Elements of the program include a traveling workshop and a week-long intensive Trainer Leadership Institute. Each workshop accommodated about 100 participants. Topics covered included scientific publishing and presenting; communicating science to the public; careers in science; and scientific collaboration and funding (28). The feedback from participants has been very positive.

Festival de Química Since 2005, the Festival de Química or Chemistry Festival has been a successful community event that showcases the importance of chemistry in our everyday life (29) via simple hands-on activities. This event targets the general public, especially children, and aims to educate them about chemical concepts, while communicating the value and impact of chemistry. For 2015, ACS International Activities has launched a grants program for new and existing festival organizers. Seven grant applications were peer-reviewed, and awards were dispensed in amounts ranging from $1,000-$3,000. Groups in the Bronx, N.Y., Malaysia, Hungary, Taiwan, Colombia, Shanghai, and Nigeria received funding to support these events. 8 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

3. International Symposia and Colloquia Global Innovation Imperatives

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Global Innovation Imperatives (Gii) (30) fosters creative solutions to imperatives of global significance (e.g., clean water, food and health). The 2014 program was held in Singapore as mentioned earlier in this article. In 2015, the University of Uyo was awarded the grant to conduct a November 2015 workshop on “Sustainable Conservation of Water Resources and Remediation of Polluted Water Sources in Niger Delta Region.”

Asia-America Chemical Symposium This symposium is a provision of the ACS Alliance with the Federation of Asian Chemical Societies (FACS). ACS and FACS take turns organizing this meeting once a year around a scientific topic of current interest. In 2014, the Asia-America Chemical Symposium was held at the ACS national meeting in San Francisco in August, and the topic was “Global Stewardship and Chemistry Innovations for Sustainable Agricultural and Food Products." The 2015 symposium, which was to be hosted by FACS at the Asian Chemical Congress in Dhaka, Bangladesh in November, was postponed because of security concerns at Dhaka at that time.

Chemical Sciences and Society Summit (CS3) The Chemical Sciences and Society Summit initiative (CS3) (31) represents a collaboration among ACS, the Chemical Society of Japan, the Chinese Chemical Society, the German Chemical Society, and the Royal Society of Chemistry. The most recent white paper entitled “The Efficient Use of Elements” is the product of the fifth CS3 meeting, held in Narita, Japan in September 2013. The 2015 CS3 summit tackled the topic of “Chemistry and Water” in Leipzig, Germany.

4. Global Grants and Recognition Global Innovation Grants This is an ACS International Activities program in which a grant of up to $4000 is given to each approved applicant for innovative, internationally concentrated projects (32). In 2014, 19 applications were received and 9 awards given. In 2015 ACS International Activities again provided 9 ACS divisions, local sections, committees and international chapters with funds ranging in value from $1,000 to $4,000 to carry out globally relevant projects. 9 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

Awards and Recognition

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Since 2014 ACS International Activities has presented three ChemLuminary Awards annually for the best local section, technical division, and international chapter for their global engagement activities. A “Partnership for Progress and Prosperity” award was given to the international chapter with the best collaborative activities. Special “Salute-to-Excellence” awards were given to specific international chapters or chapter members for outstanding achievements. These awards recognize meritorious service and also serve to encourage future global chemistry-related activities 5. International Chemical Sciences Chapters ACS International Chemical Sciences Chapters (33) allow ACS members and other chemically related professionals within a geographic area to connect with one another scientifically, professionally, and socially. They help to foster collaboration, promote chemistry, organize local and regional meetings, and share ideas and resources. At the end of 2015, there are 16 ACS International Chapters, located in Saudi Arabia, Hong Kong, Hungary, Shanghai, Thailand, Romania, Korea, Malaysia, South Africa, India, Taiwan, Australia, Brazil, Nigeria, Peru, and the United Arab Emirates. 6. Global Alliances ACS believes that chemistry’s contributions toward global concerns, such as education, environment, and health and safety, should be extensive. In order to make significant progress on these issues, ACS partners with organizations around the globe to leverage our collective resources and capabilities (34). Currently, we have forged eight alliances with the following sister chemical organizations: Brazilian Chemical Society (SBQ) Canadian Society for Chemistry (CSC) Chinese Chemical Society (CCS) Federation of Asian Chemical Societies (FACS) German Chemical Society (GDCh) Latin American Federation of Chemical Associations (FLAQ) Mexican Chemical Society (SQM) South African Chemical Institute (SACI)

Acknowledgments Thanks are due to the many authors of this book, not only for contributing chapters, but also for the talks they presented during the two ACS Presidential symposia. Mention of trade names or commercial products in this publication is solely for the purpose of providing specific information and does not imply recommendation or endorsement by the U.S. Department of Agriculture. USDA is an equal opportunity provider and employer. 10 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

References NATO Science Committee. International Mobility of Scientists and Engineers: A Report of a Workshop; National Academy of Science: Washington, DC, 1982. 2. Van Noorden, R. Science on the move. Nature 2012, 490, 326−329 (http://www.nature.com/polopoly_fs/1.11602!/menu/main/topColumns/ topLeftColumn/pdf/490326a.pdf) 3. Benham, J. L. Global landscape: Chemistry-related transnational mobility and global talent innovation. Chemistry without Borders: Careers, Entrepreneurship, and Diplomacy; Cheng, H. N., Rimando, A. M., Miller, B. D., Eds.; ACS Symposium Series 1219; American Chemical Society: Washington, DC, 2016; Chapter 2. 4. Francisco, J. S. Chemistry in a global economy: Can our curriculum meet the challenge?. Chemistry without Borders: Careers, Entrepreneurship, and Diplomacy; Cheng, H. N., Rimando, A. M., Miller, B. D., Eds.; ACS Symposium Series 1219; American Chemical Society: Washington, DC, 2016; Chapter 3. 5. Siegel, J. School of pharmaceutical science and technology of Tianjin University: A demo project as an international center of excellence in China. Chemistry without Borders: Careers, Entrepreneurship, and Diplomacy; Cheng, H. N., Rimando, A. M., Miller, B. D., Eds.; ACS Symposium Series 1219; American Chemical Society: Washington, DC, 2016; Chapter 4. 6. Connelly, T. Building a global technical workforce. Chemistry without Borders: Careers, Entrepreneurship, and Diplomacy; Cheng, H. N., Rimando, A. M., Miller, B. D., Eds.; ACS Symposium Series 1219; American Chemical Society: Washington, DC, 2016; Chapter 5. 7. Diaz, A. P. Connecting the dots: Interdisciplinary relationships case study in 21st century global workforce. Chemistry without Borders: Careers, Entrepreneurship, and Diplomacy; Cheng, H. N., Rimando, A. M., Miller, B. D., Eds.; ACS Symposium Series 1219; American Chemical Society: Washington, DC, 2016; Chapter 6. 8. Hupaylo, D. Science diplomacy and global relations: “Good guys only win if they work together”. Chemistry without Borders: Careers, Entrepreneurship, and Diplomacy; Cheng, H. N., Rimando, A. M., Miller, B. D., Eds.; ACS Symposium Series 1219; American Chemical Society: Washington, DC, 2016; Chapter 7. 9. Contis, E. T. Water: Global issues, local solutions. Chemistry without Borders: Careers, Entrepreneurship, and Diplomacy; Cheng, H. N., Rimando, A. M., Miller, B. D., Eds.; ACS Symposium Series 1219; American Chemical Society: Washington, DC, 2016; Chapter 8. 10. Miller, B. D. Bibliography on international education and exchange. Chemistry without Borders: Careers, Entrepreneurship, and Diplomacy; Cheng, H. N., Rimando, A. M., Miller, B. D., Eds.; ACS Symposium Series 1219; American Chemical Society: Washington, DC, 2016; Chapter 9. 11. Isenberg, D. The Global Entrepreneur. Harvard Business Review December 2008; https://hbr.org/2008/12/the-global-entrepreneur.

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12. U.S. Department of State. Global Entrepreneurship Program; http:// www.state.gov/e/eb/cba/entrepreneurship/gep/. 13. DeSimone, J. M. Lessons in translating university research to the marketplace. Chemistry without Borders: Careers, Entrepreneurship, and Diplomacy; Cheng, H. N., Rimando, A. M., Miller, B. D., Eds.; ACS Symposium Series 1219; American Chemical Society: Washington, DC, 2016; Chapter 10. 14. Sachse, A.; Martinez, J. G. A brief guide for the chemistry entrepreneur. Chemistry without Borders: Careers, Entrepreneurship, and Diplomacy; Cheng, H. N., Rimando, A. M., Miller, B. D., Eds.; ACS Symposium Series 1219; American Chemical Society: Washington, DC, 2016; Chapter 11. 15. Shen, J. How to start a business and thrive in the global marketplace: A story from U.S./Taiwan/China. Chemistry without Borders: Careers, Entrepreneurship, and Diplomacy; Cheng, H. N., Rimando, A. M., Miller, B. D., Eds.; ACS Symposium Series 1219; American Chemical Society: Washington, DC, 2016; Chapter 12. 16. Dugar, S.; Dhandia, A.; International entrepreneurship: Lessons from the road. Chemistry without Borders: Careers, Entrepreneurship, and Diplomacy; Cheng, H. N., Rimando, A. M., Miller, B. D., Eds.; ACS Symposium Series 1219; American Chemical Society: Washington, DC, 2016; Chapter 13. 17. Guarantini, T. Knowledge-intensive business services in Brazil: Entrepreneurship in a stimulating scenario. Chemistry without Borders: Careers, Entrepreneurship, and Diplomacy; Cheng, H. N., Rimando, A. M., Miller, B. D., Eds.; ACS Symposium Series 1219; American Chemical Society: Washington, DC, 2016; Chapter 14. 18. Nambiar, S. K. The creation of a globally sustainable generic pharmaceutical model. Chemistry without Borders: Careers, Entrepreneurship, and Diplomacy; Cheng, H. N., Rimando, A. M., Miller, B. D., Eds.; ACS Symposium Series 1219; American Chemical Society: Washington, DC, 2016; Chapter 15. 19. Jaksch, F. From chemistry student to chemical entrepreneur and public company CEO. Chemistry without Borders: Careers, Entrepreneurship, and Diplomacy; Cheng, H. N., Rimando, A. M., Miller, B. D., Eds.; ACS Symposium Series 1219; American Chemical Society: Washington, DC, 2016; Chapter 16. 20. Vercellotti, S. V.; Vercellotti, J. R.. The development of a global small chemical business with international marketing and outreach. Chemistry without Borders: Careers, Entrepreneurship, and Diplomacy; Cheng, H. N., Rimando, A. M., Miller, B. D., Eds.; ACS Symposium Series 1219; American Chemical Society: Washington, DC, 2016; Chapter 17. 21. Daly, D. T. International prototype development. Chemistry without Borders: Careers, Entrepreneurship, and Diplomacy; Cheng, H. N., Rimando, A. M., Miller, B. D., Eds.; ACS Symposium Series 1219; American Chemical Society: Washington, DC, 2016; Chapter 18. 22. Giordan, J. C. It’s a competitive world out there: Factors for STEM venture success. Chemistry without Borders: Careers, Entrepreneurship, and 12 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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Diplomacy; Cheng, H. N., Rimando, A. M., Miller, B. D., Eds.; ACS Symposium Series 1219; American Chemical Society: Washington, DC, 2016; Chapter 19. American Chemical Society. ACS International Activities Committee; http://www.acs.org/content/acs/en/about/governance/committees/ international.html (accessed on 2/8/2016). American Chemical Society. ACS Office of International Activities; http://www.acs.org/content/acs/en/global/international.html (accessed on 2/8/2016). American Chemical Society. ACS International Center; www.acs.org/ic (accessed on 2/8/2016). American Chemical Society. ACS International Research Experience for Undergraduates (IREU); https://global.acs.org/global-programs/globalundergraduate-programs/international-research-experience-for-undergradsireu/ (accessed on 2/8/2016). American Chemical Society. ACS Pittcon travel grants; http://www.acs.org/ content/acs/en/global/international/regional/eventsglobal/pittcon.html (accessed on 2/8/2016). Rovner, S. L.; Tremblay, J.-F. Emerging Economies Get Career Help. Chem. Eng. News 2013, 91, 38–39. American Chemical Society. ACS Chemistry Festivals; http://www.acs.org/ content/acs/en/global/international/regional/eventsglobal/festivaldequimica. html (accessed on 2/8/2016). American Chemical Society. ACS Global Innovation Imperatives; http://www.acs.org/content/acs/en/global/international/gii.html (accessed on 2/8/2016). American Chemical Society. Chemical Sciences and Society Summit; http:/ /www.acs.org/content/acs/en/global/international/regional/eventsglobal/ cs3.html (accessed on 2/8/2016). American Chemical Society. ACS Global Innovation Grants; http:// www.acs.org/content/acs/en/global/international/regional/eventsglobal/ global-innovation-grant.html (accessed on 2/8/2016). American Chemical Society. ACS International Chemical Sciences Chapters; http://www.acs.org/content/acs/en/global/international/chapters. html (accessed on 2/8/2016). American Chemical Society. ACS International strategic alliances; http:// www.acs.org/content/acs/en/global/international/alliances.html (accessed on 2/8/2016)

13 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

Chapter 2

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Global Landscape: Chemistry-Related Transnational Mobility and Global Talent Innovation Judith L. Benham* 3M Company (Retired), 3773 Village Court, Saint Paul, Minnesota 55125-9365, United States *E-mail: [email protected].

The U.S. has been a global leader in the fields of chemistry and chemical engineering due to its commitment to and strength in research and innovation. Today, global economics are driving changes in chemical enterprises. We see expanded outsourcing of chemical manufacturing overseas, increased competition from abroad, and declines in research and infrastructure funding domestically. These combined forces challenge our ability to generate new opportunities to sustain our global competitive advantage. In many other countries, scholars have long viewed international experience as essential to professional success. This not the case in the U.S. ACS member chemists and chemical engineers are increasingly engaging in transnational collaboration in their professional activities, and we need to promote this trend to strengthen and sustain U.S. competitiveness. An internationally engaged U.S. scientific community is critical to building the collaborative teams and networks that are needed to tackle the scientific and societal challenges of our time.

Trends in Global Research and Development The global chemistry enterprise has been changing in the past 20 years. Whereas the U.S. has been a global leader in chemistry and chemical engineering in the past, many other countries are now investing heavily in natural sciences, © 2016 American Chemical Society Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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and their efforts are making an impact. An illustration is provided in Figure 1 for the R&D expenditures for several regions of the world in science and engineering (1). Globally, research and development expenditures totaled roughly $1.435 trillion. U.S. and European Union (EU) are still spending a lot of money in R&D. However, East and Southeast Asia have notably increased their R&D investment.

Figure 1. R&D expenditures for United States, EU and 10 Asian economies in 1996-2009. Source: National Science Foundation (1).

In view of the changing pattern of R&D expenditure, perhaps it is not surprising that changes are found in the growth of the number of science and engineering researchers in various countries. Figure 2 provides the average annual growth rate in the number of researchers in selected countries or regions (1). The growth in China and South Korea is particularly notable. Citation data (2) suggest that the influence of U.S.-authored articles remains quite high, but has dropped over the past 10 years. In 2012, articles with U.S. authors were among the top 1% most-cited articles about 74% more often than expected, based on the U.S. share of all articles, compared with 85% in 2002. Between 2002 and 2012, EU-authored articles, on average, became more influential. In 2002, they were cited 21% less often than expected among the top 1% most-cited articles; in 2012, the EU improved to 6% less often. In 2012, China’s share of highly cited articles was 37% less than expected. 18 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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Figure 2. Average annual growth in number of science and engineering researchers. Source: National Science Foundation (1).

As the world continues to become more globalized, the number of international research collaborations has increased across the globe (2). Internationally coauthored articles grew from 16% to 25% from 1977 to 2012. Between 2002 and 2012, the number of research articles with international coauthors has increased across the globe. In the United States, 35% of its articles were coauthored with institutions in other countries in 2012, compared with 25% in 2002 (Figure 3).

Figure 3. Share of science and engineering articles internationally co-authred, by selected country: 2002 and 2012. Source: National Science Foundation (2). 19 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

International collaboration has a strong, positive influence on journal placement and citation performance in most disciplines (2, 3). As the number of countries represented in an author’s list increases, articles are more likely to be published in journals with higher impact factor (3). Though the impact international collaboration has on the individual discipline was different, the overall positive trend was clear. The role of journal placement has a disproportionate effect on citations accrued. Citation performance, however, draws on the scientific community as a whole and can be viewed as a more democratic means of assessing impact.

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Global Skills in Demand In order to better understand the supply/demand picture of global business, Oxford Economics carried out a detailed survey of 352 human resources professionals around the world in 2012 (4). Among the skills being surveyed were digital, agile thinking, interpersonal and communication, and global operating skills. With respect to global operating skills, five competencies were found to be desirable: 1) ability to manage diverse employees (49.1%), 2) understanding international markets (45.7%), 3) ability to work in multiple overseas locations (45.7%), 4) foreign language skills (37.5%), and 5) cultural sensitivity (36.1%) (4). As noted earlier, in science and engineering it is useful to collaborate with international scientists, and these five competencies are consistent with this understanding. Reflecting the need of businesses to expand worldwide, the three competencies with the highest ranking are the facility to manage diverse employees, the understanding of international market, and the ability to work in multiple overseas locations.

ACS International Center In view of the increasingly globalization of the chemistry enterprise and the desirability of international research and exchange experience, ACS launched the ACS International CenterTM in December 2012 (5). It was designed to provide curated information on global research, education, and exchange funding programs. It encourages, engages, and supports international exchange of chemists at all levels (i.e. undergraduate, graduate, faculty, post-doctoral, and professional levels) by building strategic alliances and partnerships between ACS and chemical institutions abroad. The ACS International Center is designed to be virtual (with place-based activities), providing coordination and direction upon four foundational “pillars” (Figure 4). It aims to create an information clearinghouse for chemical sciences and engineering research collaboration and exchange. It develops and disseminates persuasive evidence of the value of international collaboration. It collects and disseminates best practices to catalyze innovation in the global chemical enterprise. Lastly, it develops and implements best practices for science-based input to domestic and international policy. 20 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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Figure 4. Design and long-term view of the ACS International Center. Four pillars will be implemented as resources are available.

The ACS International Center features listings of over 600 scientific collaboration and research opportunities between hundreds of funding organizations across 17 regions worldwide. Live events and archived webinars from international organizations, with tips on when and how to apply for programs and funding, are available on the site. The International Center offers tips on places where you can meet experts to help guide your international career, along with networking opportunities for connecting with peers, research mentors and program officers. The website hosts a plethora of information on scholarships, travel awards, internships, and other programs with the mission of providing this information to students and postdocs seeking an international career. It also issues a periodic newsletter containing updates on international programs, events and resources. The ACS International Center is blessed with the participation of a large number of Affiliates. They include The American Friends of the Alexander von Humboldt Foundation, the German Academic Exchange Service (DAAD), The Sao Paulo Research Foundation (FAPESP), the Centre National de la Recherche Scientifique, Fulbright New Zealand, the NL Agency, EURAXESS, the German Research Foundation (DFG), Inserm, the German Center for Research and Innovation (GCRI), the Japan Society for the Promotion of Science (JSPS), the Embassy of the Republic of Singapore, the Luso-American Development Foundation, the Boren Awards, the Japan Science and Technology Agency (JST), ConRuhr USA, The Council for International Exchange of Scholars (CIES), Contact Singapore, the London International Youth Science Forum (LIYSF), Partners of the Americas, the Embassy of Italy in the US, the Embassy of 21 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

France in the US, the China Environment Forum (CEF), the United State – India Educational Foundation (USIEF), the Inter-American Foundation, The American Association of University Women (AAUW), The Global Language Network (GLN), and NAFSA, the association of international educators. A major redesign of the ACS International Center site was completed in October 2015. Usage remains high. The International Center seems to provide an excellent service to scientists and students interested in international education and exchange.

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Conclusions As the chemistry enterprise continues to change, it is increasingly important for scientists and engineers to think global, to understand the international market, to manage diverse workforce, and to seek collaborations. The ACS Internatioal Center is very useful resource for anyone interested in collaborative research with international colleagues. It is also an excellent way to search for international exchange and educational opportunities.

References 1. 2. 3.

4.

5.

National Science Foundation. Science and Engineering Indicators; 2012. National Science Foundation, 2014. http://www.nsf.gov/statistics/seind14/ index.cfm/chapter-5/c5s4.htm (accessed March 23, 2016). Smith, M. J.; Weinberger, C.; Bruna, E. M.; Allesina, S. The Scientific Impact of Nations: Journal Placement and Citation Performance. PLoS One 2014, 9 (10), e109195 DOI: 10.1371/journal.pone.0109195. Oxford Economics, Global Talent 2021; https://www.oxfordeconomics.com/ Media/Default/Thought%20Leadership/global-talent-2021.pdf (accessed March 23, 2016). ACS International CenterTM. www.acs.org/ic (accessed March 23, 2016).

22 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

Chapter 3

Chemistry in a Global Economy: Can Our Curriculum Meet the Challenge? Publication Date (Web): August 17, 2016 | doi: 10.1021/bk-2016-1219.ch003

Joseph S. Francisco* College of Arts and Sciences, University of Nebraska Lincoln, 1223 Oldfather Hall, Lincoln, Nebraska 68588-0312, United States *E-mail: [email protected].

What we can do as chemical educators to better prepare tomorrow’s chemists for competition in the global marketplace? The solution to a number of global issues such as clean water, environmental degradation, and global climate change requires applying chemical knowledge across multiple disciplines from biology to physics to business. Moreover, these challenges will require skilled scientists working together with other scientists on an international basis. With the globalization of industries, there is a demand for a more internationally oriented work force with an increasing number of jobs linked to international trade. Educating today’s chemists to live in tomorrow’s world requires greater independent knowledge, skills, and global competence. While future chemists will continue to be employed in universities, research and development laboratories; chemical, petrochemical and pharmaceutical industries; mineral, metal and pulp and paper industries as well as in a wide variety of manufacturing, utility, health, educational and government establishments, the way in which chemistry ‘is done’ will increasingly be characterized by virtual, telecommunicated and placed-based transnational scientific networks. This article will address what we can do as chemical educators to better prepare tomorrow’s chemists for competition in the global marketplace.

© 2016 American Chemical Society Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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The Workplace in Today’s Global Economy The chemistry enterprise is becoming increasingly globalized, with greater mobility of people, money, information and technology. Since 1995, the number of researchers in United States, European Union and China has grown significantly (1). China has experienced the largest growth in scientific researchers over this time, rising from about 500,000 researchers in 1995 to over 1.3 million by 2007. Other countries, such as Japan, South Korea, Taiwan and Singapore have also experienced researcher growth, but at a much slower rate. Russia has actually experienced a decline in its number of researchers, falling from about 625,000 in 1995 to 500,000 in 2007. Increased globalization and automation, changing demographics and workplaces, including the personal risk and responsibility involved in these settings has changed what skills employers are demanding across the economy. The ability to perform routine cognitive tasks, such as filing and bookkeeping, no longer hold as much value, as these tasks are increasingly being performed by computers, or simply sent offshore. Today, employers see more value in an employee’s expert thinking, and complex communication skills (2). Collaboration is also becoming more important in the workplace. Many companies are now organizing themselves with self-managing teams, rather than taking a traditional hierarchical approach. In 1988, self-managing teams were used by 28% of the top 1,000 companies. In 2005, that number rose to 65%. Team building is increasingly being viewed as one of the most effective ways to tackle today’s complex tasks.

International Collaborations Chemistry, as a multidisciplinary, interdisciplinary and multinational science, has benefitted from international collaborations for a long time. As the chemical industry continues to become more globalized, there appears a need for more chemistry talent with international experience. Higher education departments, faculties and institutions are in a unique position to respond to these needs. Current Status One of the first steps the chemistry enterprise can take to meet these needs is increasing the international opportunities for women in academia. The National Science Foundation conducted a survey of those with doctoral degrees in science and engineering, and measured their collaboration as a function of employment sector and sex (Figure 1) (3). First, the survey found that women, regardless of employment sector, lag men within that sector in international collaboration. Secondly, those in educational institutions lag scientists and engineers employed in government and business/industry in international collaboration. Women in business and industry settings reported a level of international collaboration that revealed a wider sex gap than in any other sector. The higher level of for-profit industrial sector collaboration (27%) holds regardless of gender, place of birth, highest degree attained, and location of postsecondary education. 24 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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Figure 1. % of international collaboration of U.S. scientists and engineers by employment sector and gender in 2006. reprinted from Reference (3).

Figure 2. % of international collaboration of U.S. doctoral-degreed chemists, 2006. reprinted from Reference (3). 25 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

In a different survey, those employed in business/industry were more likely than other PhD-level scientists and engineers to collaborate internationally (4). The gap among academic women’s and men’s participation is wider than that for scientists and engineers in general. In chemistry, whereas almost half of all chemists with PhDs in business/industry collaborate internationally, chemists in academic institutions actually lag their peers in other science and engineering areas (Figure 2). Investing in greater international collaboration opportunities for women and those in academia would be a big step forward to meeting the global challenges of the future.

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Benefits of International Research Collaboration Increasing international research collaboration is beneficial for a number of reasons. Collaborative research has been shown to encourage cross-fertilization across disciplines and provide access to expertise, equipment and resources, increasing both social capital and capacity. Collaborative research encourages learning tacit knowledge about a technique, as well as combining knowledge for tackling large and complex problems. Generally, collaboration has a positive relationship with productivity, quality and impact of publication – the latter of which contributes to prestige and visibility. This means better journals with more citations (5). Kristin Matthews evaluated collaboration in her case study, “International Stem Cell Collaboration: How Disparate Policies between the United States and the United Kingdom Impact Research” (6). In the study, she sought to answer the question of how increased international collaboration affects the impact of the research product, and whether scientists gain anything from international research collaborations. What she found was UK researchers engaged in more international collaboration than did their U.S. investigators. In addition, research from the UK and US international collaborations cited significantly more than those generated solely by UK or US researchers.

Importance of a Global Dimension in Higher Education Because the production of knowledge in all fields is a worldwide phenomenon, making interaction and collaboration with investigators in other countries is not only valuable, but increasingly essential. An increasing number of issues and problems are global in scope and cannot be fully understood or addressed by conducting researching on or in one country alone. To be an effective member of this global community, students need to be aware of and appreciate the world’s social and cultural diversity. Graduates should be able to situate, understand and think critically about global challenges and important international problems. They should also be able to work in settings that are linguistically, culturally, economically and politically diverse. To prepare students for the future, educators need to collaborate with leaders and recruiters of the global chemical enterprise to determine the essential skills students will need in the future. This may mean developing new curriculum and 26 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

teaching methods to encourage deeper, more significant conceptual understanding of chemistry. Educators should encourage collaborations and exchanges of U.S. students with companies, universities and government agencies abroad. Teacher training should also be emphasized at the graduate level.

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Observations from Purdue University At Purdue University, it was observed that students’ experiences growing up influenced their desire to go abroad. Educating students and improving their cultural awareness at an early age could increase the number of students studying abroad. Undergraduate counselors can help by encouraging students to study abroad. The curriculum at universities should provide and expand opportunities for all students to be exposed to and engage in international experiences and learning opportunities. Students should leave college with a reasonable level of knowledge, insight and experience pertaining to the broader world community. This can be achieved by developing a broad array of internationally-themed freshmen seminars. These seminars would not only impart knowledge about a particular topic or world region, but also to develop students’ appreciation for international studies more broadly, including the value of education abroad. Giving students this experience early in their academic careers will encourage them to take advantage of the many opportunities for international learning offered by their college. Equally important, it will enable them to better understand the international significance of their disciplinary studies and to resist an inappropriate distinction between knowledge of other countries and regions and disciplinary specialization. Knowledge of a second language is also very beneficial. Despite the widespread and growing use of English throughout the world, the prospects for success and advancement in many professions are greatly enhanced by the knowledge of a language other than English. Knowledge of one or more foreign languages broadens a person’s outlook, perspective, and horizon enhancing his or her prospects for a successful and satisfying life in a society that is increasingly diverse and in a world that is increasingly interdependent. Colleges should discourage the view that the widespread use of English around the world means that knowledge of a foreign language has become less important. Colleges should develop curricular and co-curricular programs that help students to appreciate the importance of learning a language other than English and that stimulate interest. Colleges should offer students varied and multiple opportunities to use a foreign language in their coursework and research, including through a language across the curriculum (LAC). Higher Education Institutions should increase the number of students having an education abroad experience. This means developing activities that increase student interest in having abroad experiences and identifying and removing factors that discourage students from going overseas. Colleges should expand and diversify the range, location and type of education abroad opportunities offered to their students. 27 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

Colleges and universities should also develop international partnerships guided by principles of reciprocity and mutually-added value; of maintaining academic quality and scientific and ethical integrity. These partnerships should be expanded with respect to location, type of partnering institutions, type of collaborative activities and the innovative use of new technologies.

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Observations from Big Ten Universities One great example of expanding collaboration and international opportunities is the Committee on Institutional Cooperation (CIC), a consortium of the Big Ten universities plus the University of Chicago. Through CIC, the research institutions involved have advanced their academic missions, generated opportunities for students and faculty, and served the common good by sharing expertise, leveraging campus resources and collaborating on innovative programs. For example, Ohio State plans to expand its global reach by developing an international experience for undergraduate, graduate and professional students, promote scholarship on major global issues, increase the percentage of international faculty and students, create international dual degree programs, develop an international physical presence, and promote collaboration with Ohio’s international business ventures. The University of Minnesota’s Global Programs and Strategy Alliance is leading discussions on University-wide policies, goals, and international agenda. It is also internationalizing its curriculum and campus, and providing funding international activities and recognition for international awards. Michigan State University promotes the international research work of its graduate students at a Graduate Academic Conference each year. MSU also publishes an annual magazine reporting on the research, teaching and outreach efforts of the faculty and staff around the globe. MSU works with The Office of International Research Collaboration (OIRC) to assist faculty in developing trans-disciplinary research proposals for external funding that focus on college and university international/global research priorities.

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Organization for Economic Co-operation and Development. Main Science and Technology Indicators; 2015; http://www.oecd.org/sti/msti.htm (accessed on 11/5/15). Levy, F.; Mumane, R. J. The new division of labor: How computers are creating the next job market; Russell Sage Foundation: Princeton, NJ, 2012; p 50. Frehill, L. M.; Zipple, K. Survey of Doctorate Recipients, 2006: Findings on International Collaborations of Academic Scientists and Engineers; http:/ /nuweb.neu.edu/zippel/nsf-workshop/docs/SDR_Oct22_2010.pdf (accessed on 11/5/15). 28 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

4.

5.

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6.

Falkenheim, J.; Kannankutty, N. International Collaborations of Scientists and Engineers in the United States; NSF report (August 2012); http://www.nsf.gov/statistics/infbrief/nsf12323/ (accessed on 11/5/15). Smith, M. J.; Weinberger, C.; Bruna, E. M.; Allesina, S. The Scientific Impact of Nations: Journal Placement and Citation Performance. PLoS One 2014, 9 (10), e109195 DOI:10.1371/journal.pone.0109195. Luo, J.; Flynn, J. M.; Solnick, R. E.; Ecklund, E. H.; Matthews, K. R. W. International Stem Cell Collaboration: How Disparate Policies Between the United States and the United Kingdom Impact Research. PLoS One 2011, 6 (3), e17684 DOI:10.1371/journal.pone.0017684.

29 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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Chapter 4

School of Pharmaceutical Science and Technology of Tianjin University: A Demo Project as an International Center of Excellence in China Jay Siegel* School of Pharmaceutical Science and Technology, Tianjin University, Tianjin, 300072 China *E-mail: [email protected].

Tianjin city is home to many firsts in China, including not only the first and oldest international hotel in China, but also the first university for modern higher education - Tianjin University (Peiyang University) in 1895. The founding of this university was important not only in that it brought China into the industrial age and led to many major industrial achievements for China (first car, first plane, first telecommunication network), but also because it was founded through the joint efforts of Chinese entrepreneur SHENG Xuan Huai and American educator Charles D. Tenney. That fact has special relevance to this book concerning international research, because it demonstrates the roots of such programs back to the end of the 19th century, and the beginning of modern China (Read, T. T., Popular Science Monthly, Volume 80, May 1912). Tianjin University, now celebrating its 120th anniversary, is again in the spotlight for international training in Chinese higher education. The School of Pharmaceutical Science and Technology (SPST) at TJU is an international demonstration project, recognized by the Chinese State Authority of Foreign Experts Association (SAFEA) as the 1st National International Center of Excellence (NICE). The charge of SPST is to develop a fully international school within a 985 Chinese University system. This task requires one to address, at the international level, issues of administration and logistics, curriculum reform, instrumentation and infrastructure © 2016 American Chemical Society Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

development, as well as student and faculty recruitment. This article summarizes my perspectives and experience as the Dean of SPST and the successful efforts to develop an internationally recognized research institution during my first 2 years at SPST.

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Introduction China and the United Kingdom have a history of joint educational ventures. In 2004, the University of Nottingham opened the University of Nottingham Ningbo, China (UNNC) in Ningbo, China. In 2006, the University of Liverpool and Xi’an Jiaotong University partnered to found Xi’an Jiaotong-Liverpool University, the first Sino-Anglo university between two research-led universities. The U.S. was not far behind in joint developments in China. Recently, in 2014, New York University partnered with East China Normal University of Shanghai to form New York University Shanghai, the first American college to receive independent registration status from China’s Ministry of Education. Soon we will see the establishment of many more Sino-western joint ventures as branch campuses in China.

Tianjin University Tianjin University was the first modern higher education institution in China when it was established as Peiyang University in 1895 (1). Recently, Tianjin University has endeavored to become a major international player in higher education (2). In July 2000, Tianjin University established the School of Pharmaceutical Science and Technology (SPST) (3) (Figure 1), with official enrollment beginning in 2001. SPST proved its worth and was designated as an “International Center of Excellence (NICE) in China” in 2014 by the Chinese Ministry of Education and State Authority of Foreign Experts Association. Only two other charter institutions received this honor in China, and the Tianjin model has been the leading template for universities wishing to develop future programs.

School of Pharmaceutical Science and Technology (SPST) SPST is led by a dean and a party secretary, who oversee a cadre of professional associate deans, a cohort of professorial vice deans, professional committees, and International Advisory Council. The inaugural International Advisory Council is composed of a self-managed group of individuals: Dr. Chris Abell of the University of Cambridge, Dr. Donald Hilvert of ETH-Zurich, Dr. Michael Marletta of UC Berkeley, Dr. Thomas J. Meade of Northwestern University, Dr. Wang Shaomeng of the University of Michigan, and Dr. William L. Jorgensen of Yale University. 32 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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Figure 1. Part of the SPST building at Tianjin University. (Courtesy of Jay Siegel)

SPST staff also includes many high-level experts, with a score of recent new hires from abroad, including many new Junior and Senior 1000-talent awardees. The new institute is also fortunate to have several high level important advisory and part time contributors, including Aaron Ciechanover, a Nobelist at Technion; J. Fraser Stoddart of Northwestern University; Erik J. Sorensen of Princeton University; and Johannes Zuilhof of Wageningen University. The span of research crosses a number of topics related to pharmacy and pharmaceuticals, including proteomics, molecular science, computation science, supramolecular chemistry, traditional Chinese medicine, biology, and pharmacoeconomics. Recently, the success of SPST has resulted in the university elders deciding to move on a vision for a new Health Sciences platform, initially rolling together SPST with the School of Life Science (SLS) and with plans to add Bioinformatics, Bioengineering and Public Policy to the mix.

Internationalization of SPST SPST aims to establish itself internationally, with high level talent and emphasis on international standards. The new curriculum being established will be taught in English, with many local Chinese students up to the challenge and additional students recruited from traditionally English-speaking areas, such as the US, UK, EU, Hong Kong, Singapore, and Canada. SPST takes an 33 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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innovative approach to education by decreasing the required number of in-class teaching hours and courses in favor of increased hands-on and experimental learning opportunities. SPST’s International Undergraduate Experimental Class of Pharmacy permits students to choose a scientific or professional track. The scientific track allows students to obtain a Ph.D. and ultimately become research and development scientists or academics. The professional track allows students to earn a M.S., and go onto careers as international or Chinese-registered pharmacists. As students progress in their programs, they gain the opportunity to pursue careers in an increasing number of disciplines, learning the full scope of pharmacoeconomics. Students with a B.S. can pursue careers in pharmacy. Students with a M.S. can pursue more specific subdisciplines, such as medicinal chemistry, pharmaceutical administration, pharmaceutical analysis, pharmacology, microbial and biochemical pharmacy, and pharmacognosy. Those with Ph.D.s could pursue careers in applied chemistry (pharmacy), public health and pharmaceutical administration. To create an environment suitable for modern research and education, SPST is in the process of a large renovation project in Tianjin University. The vision at the Health Science platform level comprises several buildings on the old campus in the Nankai District of Tianjin, near the cultural heart of the city. Renovation and restructuring of the infrastructure will be based upon a world class teaching undergraduate lecture and laboratory space, designated as a demonstration project of the Tianjin municipality, and a collection of core research infrastructure platforms to motivate and facilitate multidisciplinary research through collaboration of expert groups. The primary building is well-equipped for research, featuring biology laboratories, molecular science center, pharmaceutical and pharmacology facilities, computational modeling and pharmacy administration areas, and instrumental and analytical platforms. New developments include tutorial rooms, classrooms, teaching labs, a coffee bar and discussion lounge, and other integrated areas for student activities. Students will have access to lockers and Wi-Fi to create a class identity with the greater Health Science platform. A class of master technicians is being recruited, who will provide regular and professional maintenance to research equipment to ensure continued operation. Safety officers will routinely inspect the safety of the laboratory personnel, their experiments, and the facilities. The goal is to be a safe and sane working environment with state-of-the-art facilities. To improve international accessibility, SPST has created an English website (3) for release and archiving of information. The web platform provides access to e-learning materials and online training platforms, as well as a database on students and faculty with automated update capabilities. In development are e-notebook, core platform scheduling, and inventory systems. SPST provides international student exchange, student group learning and communication opportunities. Seniors in high academic standing, with direct privileges at SPST, can study overseas for six months to work on their graduation theses and gain cultural experiences. SPST is developing an international network within the material science, chemistry, and pharmacy fields. Specific Memoranda of Understanding for scholar exchanges have been signed with University of Sao 34 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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Paulo, University of Zurich, University of Padova, University of Edinburgh, and Northwestern University. Institutions of higher education, such as UCLA, UC San Diego, Princeton University, University of Milan, Technion - Haifa, Hong Kong University, University of Southern California, University of Auckland, University of Bristol and several schools in Thailand are targeted to join Tianjin University in a Global Excellence Consortium. To help build a world-class school comprising global talent, SPST has created career-development fellowship positions to attract highly talented scholars to pursue research and academic careers in China. Similar to a habilitation in Germany, these positions allow young principal investigators to develop their independent research further under the mentorship of a senior faculty. It is expected that those doing well will move quickly into professor track positions. The internationalized scientific platform of SPST is the pride of Tianjin University. The campus has been visited by prominent figures like Mrs. Helle Thorning-Schmidt, Premier of Denmark, selected as a venue for the Alexandria Summit, and captured the attention of the American Chemical Society (4), and China’s Friendship Award (5). We have successfully recruited foreign-trained chemists to Tianjin University. In fact, the ease with which they have been recruited surpassed our expectations. Remarkably, about two-thirds of the job offers made were accepted, amounting to roughly three dozen positions filled in only three years (6). Even academics who were tenured at prestigious U.S. and EU universities have relocated to Tianjin to join the new platform (6). In summary, SPST represents an excellent research and career opportunity for students and scholars interested in multidisciplinary work in chemistry, biology, medicine, and pharmacy. It seems that SPST is well on its way to become a world-class fundamental drug research center staffed by a competent and renowned international faculty and the corner stone of a greater Health Science platform at Tianjin University.

References 1. 2. 3. 4.

5. 6.

The history of Tianjin University is given in the following website; https:// en.wikipedia.org/wiki/Tianjin_University (accesed 4/11/16). Tianjin University website; http://www.tju.edu.cn/english/ (accesed 4/11/16). School of Pharmaceutical Science and Technology at Tianjin University; http://www.tju.edu.cn/pharm/ (accesed 4/11/16). Tremblay, J. F. American Takes Charge In Tianjin. Chem. Eng. News 2013, 91 (43), October 28, 2013. http://cen.acs.org/articles/91/i43/AmericanTakes-Charge-Tianjin.html (accessed 2/7/2016). Wang, L. China’s Friendship Awards to Jay Siegel and Peter Stang. Chem. Eng. News 2015, 93 (44), 35. Tremblay, J. F. More than ever, China seeks foreign chemists. Chem. Eng. News 2016, 94 (10), 25–27. 35 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

Chapter 5

Building a Global Technical Workforce

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Thomas Connelly* American Chemical Society, 1155 Sixteenth Street, N.W., Washington, DC 20026, United States *E-mail: [email protected].

Finding solutions to 21st-century challenges, ensuring continued national prosperity, and maintaining our position in the global economy will require a highly skilled, creative, and innovative workforce. Underlying this vision is the global competitiveness of the United States and capacity for innovation that hinge fundamentally on a strong system of graduate education. This article focuses on the recent trends in innovation, globalization, and management models used by U.S. organizations to maximize the effectiveness of a global workforce. Proper execution is often the key to success. During execution and planning, global thinking is even more important than global locations. With an organization that thinks globally, a workforce should be more capable of working across distances, time zones, and cultures.

Introduction Being able to innovate and think globally is essential for building a global technical workforce. With the advent of new technology, means of communication, and transferring information, our traditional approaches to innovation and the marketplace, especially globally, has changed dramatically. In this article, the author explains how these approaches to innovation and globalization are changing, and individuals and organizations should prepare for the future.

© 2016 American Chemical Society Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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Innovation Innovation is the process of developing and applying new technology, or combining existing technology in new ways, to create value. An innovator needs to understand a market need, develop a unique technological response, and execute that response in a commercial environment. Innovation is essential in the marketplace in order to stay ahead of competition. We can invent in the laboratory but we can only innovate in the marketplace. In fact, the best innovations are those that are market-driven or close to the marketplace. Traditional innovation approaches assume that industries invent and design innovative new products to meet needs customers may not even realize they had. Alternatively, they may also assume that industries invent and design innovative new products based on information customers provide to these industries. The traditional model is shown in Figure 1a. Modern innovation approaches are more complex. Modern innovation can be conceptualized as an exchange-type model, where there is healthy dialogue between customers and our technology reservoir, e.g., national laboratories, universities, and venture capital-backed startups (Figure 1b).

Figure 1. Innovation approaches: a) traditional model (left picture), b) today’s innovation model (right picture). At DuPont, where the author was previously employed, the exchange-type innovation model is being used successfully (1). The model has the advantage of expanded resources, increased and faster flow of information, enhanced product and technology ideas, and stronger linkages with all stakeholders involved.

Globalization Globalization is driving an evolutionary change in research and business. Early models in this evolution can be described as dependent, or even colonial: those in charge are at headquarters, and they control what the rest of the world does and how work is done. There are advantages: lines of communication are 38 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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clear, and decisions can be made and implemented (even if the decisions are not always based on the right data). This is the way many U.S. companies have operated. The next stage in the evolution is an independent, regional model, known as the “separate-but-equal” approach. Geographic separation between the headquarters and a regional location creates a partition. This represents, at some level, progress versus a command-and-control ‘dependent’ phase. However, this “departmental” state can be dangerous, as it fragments the overall organization and forfeits the potential benefits of global optimization for regional optimization. It is critical that organizations in this phase move to the next level: the interdependent model (2). The interdependent model is the most difficult to execute because it requires orchestrating the efforts and opportunities of the many separate regions, optimizing them for the benefit of the whole organization. For example, it means that a researcher based in one location must work on the most pressing global problems, regardless of their location, as though the problem existed in his or her home location. The three models are shown in Figure 2.

Figure 2. Business and research models for global organization.

There are three reasons for a company to move into the interdependent model: (1) global customers may insist on it; (2) global competitors may prey on the lack of unity between regions; and (3) resources are limited—few, if any, companies have the luxury of reproducing all that is done in United State in other regions of the world. In order to achieve successful, global interdependency, a company must be able to manage diverse and remotely located working groups and projects. This often involves a knowledge of the geography, politics, culture, and market dynamics of the international locations. Companies (and employees) must be able to tolerate ambiguity and uncertainty as they strive for interdependence. In most cases, it is helpful for individuals involved to know a second language to facilitate communication between the interdependent parts of a company. During planning and execution, global thinking is more important than global locations. U.S.-based chemical industry is increasingly dependent on talent from around the world. ‘Global’ means putting people in the right roles, regardless of where they came from. Diverse thought and different points of 39 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

view are essential to discovery and innovation, and global thinking is just one dimension of diversity. This is why many research laboratories are increasingly being reorganized from a competence-based structure to a team-based project structure. With teams that think globally, an organization should be more capable of working across boundaries.

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American Chemical Society (ACS) ACS currently has over 158,000 members, 25,000 of which are living outside of the U.S. 85% of its members have degrees in chemistry. 52% of its members are involved in business and industry. ACS is committed to its mission to “Advance the broader chemistry enterprise and its practitioners for the benefit of Earth and its people” (3). The ACS vision is: “Improving people’s lives through the transforming power of chemistry. ACS’s vision and mission are the guiding forces for all of its activities, products, programs and services. To help prepare for the future, ACS has expanded its presence around the globe. Currently ACS has 16 International Chemical Sciences Chapters around the world with a few more in the pipelines. These International Chapters provide local networking, organize scientific and professional meetings and workshops, and facilitate collaboration. ACS Publications and Chemical Abstracts Service are both very active worldwide, and they serve the global chemistry community, publishing and managing the chemistry information from chemists, chemical engineers, and allied scientists around the world. ACS offers many services to its members, and the interested reader may check its website to gain a full scope of its activities (3). For the present context of workforce and innovation issues, the following ACS entities may be of particular interest: 1.

ACS International Activities (4). There are a variety of programs, events and activities in the international area involving ACS staff, members, and other chemistry professionals. These include ACS International Chapters, educational and outreach activities, international collaborations, meetings and symposia, and many communication and networking opportunities. One of the programs within ACS International Activities may be specifically mentioned. The ACS International Center (5) provides information on international education and exchange opportunities for scientists and engineers, including scholarships, travel awards, funding opportunities, and grants specifically for researchers going abroad. Links to these scholarships and programs are sorted in two ways: by host country, and by level of experience. The site currently contains opportunities across 16 different regions: the U.K., Italy, Brazil, France, India, Singapore, Hungary, China, Japan, Germany, South Africa, Turkey, the Netherlands, Portugal, the U.S., and others. A major redesign of the site was just completed in October 2015. 40 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

2.

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3.

ACS Corporation Associates (6) provides the link between ACS and chemical and allied industries. It consists of more than 25 companies that actively support the profession and science of chemistry. It operates a number of programs such as the Corporation Associates Grants Fund, networking events for senior managers in companies, and access to market information, technical trends, manufacturing patterns, and market opportunities. Three ACS technical divisions are involved with the chemical and allied business communities: Division of Business Development and Management (BMGT) (7), Division of Industrial and Engineering Chemistry (I&EC) (8), and Division of Small Chemical Businesses (SChB) (9).

Realizing the importance of education to the chemistry workforce, ACS has very active and extensive programs in education. Three national committees are listed below. The ACS has excellent staff members in their ACS Education Division, which initiates and coordinates many of the activities. 1.

2.

3.

The Committee on Professional Training (CPT) promotes excellence in postsecondary chemistry education and provides leadership to the ACS in the professional training of chemists (10). A major activity is the approval of baccalaureate chemistry programs at colleges and universities. Submission of the programs for approval is voluntary, but ACS approval confirms that the programs are broadly based and rigorous. The Society Committee on Education (SOCED) focuses on critical chemical education issues across all levels of instruction (11). Among their many activities, they recommend and help implement ACS policies and programs in chemical education, and they serve in an advisory capacity at ACS on matters relating to chemical education. The Committee on Project SEED organizes and coordinates programs where students from economically disadvantaged backgrounds have the opportunities to be exposed to and participate in scientific work (12). The committee also offers an array of college scholarships for SEED students.

Other areas within ACS that have an educational component include chemical safety, analytical reagents, environmental improvement, ethics, nomenclature, terminology, and symbols, and patents and related matters. Interested readers can check the ACS website on committees for more information (13).

References 1. 2.

DuPont R&D at a Glance; http://www2.dupont.com/Career_Center/en_US/ assets/downloads/duPont_r_d_history.pdf (accessed Nov. 17, 2015). Narula, R. Globalization and Technology: Interdependence, Innovation Systems and Industrial Policy; Blackwell Publishing: Maiden, MA, 2003. 41 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

3. 4. 5. 6. 7.

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8. 9. 10. 11. 12. 13.

American Chermical Society (ACS) Home Page; http://www.acs.org (accessed Nov. 17, 2015). ACS International Activities Home Page; http://www.acs.org/international (accessed Nov. 17, 2015). ACS International Center Home Page; http://www.acs.org/ic (accessed Nov. 17, 2015). ACS Corporation Associates Home Page; http://www.acs.org/ corporationassociates (accessed Nov. 17, 2015). ACS Division of Business Development and Management Home Page; http:/ /bmgt.sites.acs.org/ (accessed Nov. 17, 2015). ACS Division of Industrial and Engineering Chemistry Home Page; http:// iecdivision.sites.acs.org/ (accessed Nov. 17, 2015). ACS Division of Small Chemical Businesses Home Page; http://schb. sites.acs.org/ (accessed Nov. 17, 2015). ACS Committee on Professional Training Home Page; http://www.acs.org/ training (accessed Nov. 17, 2015). ACS Society Committee on Education Home Page; www.acs.org/education (accessed Nov. 17, 2015). ACS Committee on Project Seed Home Page; http://www.acs.org/projectseed (accessed Nov. 17, 2015). ACS Committees Home Page; http://www.acs.org/committees (accessed Nov. 17, 2015).

42 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

Chapter 6

Publication Date (Web): August 17, 2016 | doi: 10.1021/bk-2016-1219.ch006

Connecting the Dots: Interdisciplinary Relationships Case Study in 21st Century Global Workforce Angela Phillips Diaz* Executive Director, Government Research Relations, Office of Research Affairs, University of California San Diego, Room 237, 1608 Rhode Island Avenue NW, Washington, DC 20036, United States *E-mail: [email protected].

Working, studying, and conducting research globally is a 21st century paradigm. The foundation for the successful navigation of this paradigm is building and sustaining relationships. Over the past two decades, my career has been an intersection of science and technology (S&T) and policy spanning government, higher education, and non-profit sectors locally, regionally, nationally, and internationally. Each experience, grounded in programmatic knowledge, was enabled through relationship building vertically and horizontally. This paper highlights key professional and educational experiences as a potential roadmap for students and aspiring, young, mid- and late career professionals. These experiences demonstrate the powerful impact of an interdisciplinary context with a solid underpinning built upon relationships. Success and impact are characterized through an interdisciplinary toolkit: Agility, Balance, Collaboration, Diversity, Integrity, Respect, and Teamwork. Key knowledge, skills, and attitudes for success in this global science, technology, and innovation (STI) enterprise are not relegated solely to proficiency in a single field. Higher education in collaboration with government, industry, non-profits, and professional societies has the means to accelerate the STI global readiness of aspiring and current professionals by offering a safe environment that engages

© 2016 American Chemical Society Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

them in real world issues and encourages learning through fundamental and innovative techniques. Each of us has our own story that comprises success, failure, doubt, courage, gratitude, and inspiration. The challenge and the opportunity is how do we translate these experiences to guide and inspire our global workforce to be the exemplar for competitiveness and impact?

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Introduction There are a number of diverse interdisciplinary relationships that exist between science, technology, and policy. My career is a testament to the diverse areas one can have an impact through science and technology work. I have served the U.S. government by working for the National Labor Relations Board, the Department of Veterans Affairs, the United States Air Force, the Department of Justice, NASA, and the White House Office of Science and Technology Policy. I have also held leadership roles in higher education at the University of California Riverside and Purdue University and non-profit organizations including the California Council on Science and Technology and the ARCS Foundation. In all of these endeavors, I was leading or guiding teams engaged in transnational work focused on science and technology. These experiences both nationally and internationally have shaped my career in profound ways, particularly through the relationships I formed. With every career change, I acknowledged that I was training for something – even if I did not know what it was at the time. One of the most important relationships to me was the one I shared with Dr. Mario Molina. Dr. Molina is a Chemistry Nobel Laureate awarded in 1995, serves on the President’s Committee of Advisors in Science and Technology (PCAST), earned the Presidential Medal of Freedom in 2013, and has been a member of the American Chemical Society for 45 years. He is a scientist-activist, melding science with public policy, and developed and helped pass the Montreal Protocol. In Dr. Molino’s own words: “I also made the decision that it was not enough to just do the science, but it was important to try to do something about it, which meant to worry about the policies issue, to try to influence the way society functions, and to actually have society respond to this problem. I felt that there was a certain responsibility of scientists to do just that, which was not yet a generally accepted view. Some other colleagues thought we should simply report what we find, wash our hands, and let the politicians do the job...” I had the opportunity to work with Dr. Molina on PCAST in the 1st Clinton term and since then he has always been open and accessible to me and many others.

Interdisciplinary Toolkit I believe each of us can improve ourselves by challenging both ourselves and our friends and colleagues to be more competitive academically and professionally. The important message is that we need to have the right knowledge, skills, and attitudes for a given job. Take a chance when we have to. Above all, build relationships. 44 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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While I was at Purdue’s Global Policy Research Institute, they defined interdisciplinary as having a team with science or engineering, economics, and social science expertise. The interdisciplinary toolkit involved several key elements: agility, balance, collaboration, diversity, integrity, respect and teamwork, or “ABC DIRT”. These skill sets are invaluable across many fields, within government, academia, industry, and non-profits. The phrase “ABC DIRT” was first coined by NASA Goddard Center Director Al Diaz and became the value- based management principles during his term as Center Director. Agility: Agility is defined as intellectual acuity or the ability to think and draw conclusions quickly. My work at NASA in Congressional relations taught me that whenever I received or heard a report, I asked myself immediately, “So what? ”It is useful to quickly grasp the issues and visualize the impacts or the implications. Balance: I like this quote from Susan Hackwood, Executive Director for the California Council on Science and Technology that emphasizes the importance of balance and being able to pivot: “Making decisions on many science- andtechnology-related policies involves balancing many pros and cons, some of which may not be fully understood, and a long-term view that isn’t always easy to sell to a public who want quick results.” Over the years I have worked with faculty, administrators, and innovators fostering state-of-the-art science and technology research that would be melded with policy. This business is not neat and tidy, and there is a lot of complexity, uncertainty and ambiguity. It requires sound data, perseverance, and, oftentimes, interdependent and inclusive solutions. Collaboration: During the process of amending the Iran Non-Proliferation Act of 2000, I faced a complicated scenario of NASA vs. everyone else, agency vs. agency, economic security vs. national security, foreign policy vs. domestic policy, administration vs. legislative branches of government. The success ultimately came from relationships – long standing ones built on trust and individuals with the courage to build on their own relationships to broker legislation that met all parties’ needs, and not necessarily their wants. Diversity: One of the highlights of my service at Purdue University was working with Dr. Arden Bement (former NSF and NIST Director) and Dr. France Cordova (former President of Purdue and current NSF Director). Together, they launched the Global Policy Research Institute with the aim to bring “fresh new ideas to education and research.” One way they did this was through the Global Policy Research Seminar course -- a cross listed, interdisciplinary leadership course focused on the nexus of S&T policy and grand challenges facing the globe. This course provided students from a variety of backgrounds an opportunity to work together on teams to address grand challenges ranging from agriculture and biodiversity to health and bioengineering to national security and cyber infrastructure. Integrity: At the end of the day, integrity and ethics are foundational values that will always serve us well. Being authentic builds trust which results in sustained relationships. This holds true when we deal with people domestically or internationally, whether it be through collaborations or negotiations. Respect: I believe respect has many dimensions, and being aware and understanding of others is one aspect. When I was at NASA Headquarters, often I was the only woman in the room. It was important to have the respect of others 45 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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and in turn show respect for one’s colleagues. Every person brings a different “lens”, perspective, and expertise to the table. The alternative view or devil’s advocate can be very powerful in reaching the best solution. Although at the time it may seem tedious or off task, being respectful and encouraging all views in communication could be the difference between a successful shuttle launch or a tragedy. Teamwork: While I worked on the International Space Station Crew Code of Conduct, relationships and trust were critical. NASA had cold-war adversaries now sitting across the table trying to craft a document that was useful and viable for both parties when they fly to the International Space Station. They had put aside their “history” to some extent and worked together as a team, looking to the new world of partnerships. Teamwork in this situation was critical to success.

What Should You Do? Dr. Suzanne Bart of Purdue University, a 2015 Rising Star Award Winner, discussed inspiration as it related to her innovative approach to teaching freshmen engineering students: “Making science approachable by removing the fear and intimidation from both the subject and the instructor shows students that anyone who wants to … can study STEM fields and learn to think critically and solve problems… help diversify student populations and workforces, and bring fresh new ideas to education and research.” Up and coming “stars” like Dr. Bart as well as seasoned professionals who are generous coaches and mentors provide the encouragement and inspiration that we all need at various points in our lives. ACS has many active and involved members. I would like to ask ACS members one question: What actions will you commit to take over the next 100 days to help yourself, a colleague, a student, or a mentee to be academically or professionally more competitive in today’s global workforce? As you prepare to take your actions, remember the toolkit (ABC DIRT). Take a chance when needed. And build relationships!

Conclusions Many years ago, it was possible to become successful by focusing on a single field of study. In the complex and rapidly changing world today, the old model is frequently insufficient. Students today need to have a greater awareness of global trends and broadly based training in order to be successful in their careers. Higher education in collaboration with government, industry, non-profits, and professional societies has the means to accelerate the global readiness of aspiring and current professionals by offering an environment that can engage them in real world issues and encourages innovative instructions. The case study that I presented in this article hopefully provides inspiration to younger colleagues or students to seek opportunities, take chances when needed, and to build relationships. 46 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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I would like to end this article with a quote from Ei-ichi Negichi, 2010 Nobel Laureate, from his speech at the Nobel banquet on December 10, 2010: “The final reward for any researcher is to see his or her lifetime of work extend beyond academia and laboratories, into the mainstream of our global society where it can breathe hope into the world. … Our pursuit in research must not be for rewards. Our pursuit in whatever we do must always be for excellence, and if we accomplish excellence, it is its own reward and recognition will follow. …”

47 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

Chapter 7

Science in Diplomacy and Global Relations: “Good Guys Only Win if They Work Together” Publication Date (Web): August 17, 2016 | doi: 10.1021/bk-2016-1219.ch007

Deva Hupaylo* Organisation for the Prohibition of Chemical Weapons, 2517 JR The Hague, The Netherlands *E-mail: [email protected].

The principles of good science are also the foundation of good international relations, including thorough knowledge of the subject, objective analysis, honesty, good communication, and openness to new ideas. And we know that the world as a whole benefits from sharing scientific achievement, when it is used for the right purposes. Working for an international treaty organization is one way to use science skills while exploring a multitude of cultures and working toward more ethical use of science and technology. From my beginning in a small rural town in the U.S. to working with an international organization made up of 190 countries, a background in chemical engineering has provided skills to aid in assuring that chemistry is used for peaceful purposes, not weapons of war, so that our neighbors and children live in a better world. Most of us are aware of the value of collaboration in scientific discovery and the increased value of bringing together different disciplines of science. Similarly, using scientific principles when bringing together scholars in politics, science, and strategy, is helpful when planning the structure of a long term global community. Cross-discipline studies, cross-continent exposure, and cross-cultural understanding can synergize science as well as politics. It begins with a vision and becomes a reality.

© 2016 American Chemical Society Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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Introduction I currently work as Head of Industry Verification of the Organization for Prohibition of Chemical Weapons (OPCW) in The Hague, The Netherlands. OPCW (1) is the implementing body for the Chemical Weapons Convention, a treaty that came into being in 1997. There are 192 member states, representing 98% of the global population. In my work, I lead a branch which works with 120 inspectors; we travel to ensure that once chemical weapons are removed from a country, new supplies are not manufactured. We also monitor and inspect chemical industries in 80 countries to make sure that the chemicals which can potentially be turned into chemical weapons are being used for peaceful purposes. My experience as a chemical engineer covered implementation and optimisation of chemical manufacturing processes in several countries for The Dow Chemical Company, Koch Modular Process Systems, GE Advanced Materials, and Chemtura Corporation. My involvement in such diverse chemistries in wide geographic areas provided me with the background to work with the Chemical Weapons Treaty to prevent the re-emergence of chemical weapons.

Science and Government Science influences government in a number of ways. Commerce, healthcare, trade, military and law enforcement all depend on science in order to be implemented effectively. Subsequently, highly qualified scientists are needed to ensure that the data influencing these policies are accurate and reputable. Some examples of recent international science-based treaties include: • • • • • • • • •

Energy Community of South East Europe (ECSEE) (2005) International Treaty on Plant Genetic Resources for Food and Agriculture (IT PGRFA) (2004) World Health Organization Framework Convention on Tobacco Control (WHO FCTC) (2003) ASEAN Agreement on Transboundary Haze Pollution (2002) Protocol to the 1979 Convention on Long-Range Transboundary Air Pollution on Persistent Organic Pollutants (1998) The Kyoto Protocol (1998) Chemical Weapons Convention (CWC) (1997) United Nations Framework Convention on Climate Change (UNFCCC) (1994) 1990 Chemical Weapons Accord (Russia and U.S.A.)

As noted above, the Chemical Weapons Convention in 1997 was the treaty which created the OPCW as an implementing body, based in The Hague, Netherlands. Thanks to the organization’s work over the past 20 years, about 90% of the world’s chemical weapons have been destroyed. Today, known chemical weapon possessor states are the U.S. and Russia. Libya still has a lesser amount of precursor chemicals left, and the U.S. and Russia have been working together 50 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

to ensure that Syria, which has recently experienced chemical weapons useage during an ongoing civil war, moves its weapons to a seaport where they can be removed and neutralized at sea. (As of Fall 2015, destruction of all declared chemical weapons in Syria has been completed.) While the OPCW usually goes quietly about its business, it has been very successful. The Nobel Peace Prize recognized the OPCW "for its extensive efforts to eliminate chemical weapons" in 2013.

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Global Collaborations Scientists are aware of the value of collaboration in scientific research. Diplomacy and global relations also require collaborations in order to be successful, and can benefit from the application of scientific principles. The challenges are similar. It takes a fair amount of effort to bring together experts in politics, strategy, and science in order to plan the structure of a long term global policy or initiative. Cross-discipline studies, cross-continent exposure, and cross-cultural understanding synergize science as well as politics. Indeed, in my work at OPCW, I have found many opportunities to use science skills in a multitude of cultural settings while working toward more ethical use of science and technology. My background in chemical engineering has provided skills to help me analyze the complicated and sometimes hidden inter-relationships among people and nations. The rigorous mental discipline of engineering training is an excellent platform upon which to build the skills required to succeed in international diplomacy. Let’s take a closer look at that skill set.

Global Leadership Competencies In addition to collaboration, good leadership skills are needed for a successful scientific diplomacy endeavor. There are a number of essential traits that a good, global management leader must possess, and this is a topic of active research. For example, a pyramidal model of leadership global competency development was reported by Bird and Osland (2), followed by several publications that provided further elaborations and additional information (3–5). A slightly expanded list of these competencies was recently provided by Lane and Maznevski (6), where the competencies were grouped into five levels: 1. 2. 3. 4. 5.

Threshhold traits, including integrity, humility, inquisitiveness, resilience. Attitudes and orientation, such as cognitive complexity. Global mindset, i.e., cosmopolitanism. Interpersonal skills, e.g., mindfulness in communication, trust-building, multicultural teaming. Systems skills, e.g., community building, spanning boundaries, organizational building, leading change, influencing stakeholders, and making ethical decisions. 51 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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In a nutshell: global management leaders must be able to bring the members of heterogeneous groups together to act in concert. They must be able to create and maintain linkages, build structures and processes that facilitate effective global interactions, build capacity in individuals and teams to learn and adapt, be considerate of conflicting stakeholder needs, and identify clear sets of values and act according to them. Some specific factors are listed below: 1) A large part of being a global leader is being culturally aware and understanding that people from different cultures have different needs. Approaches to leadership in one culture may not be as effective in another. 2) One leadership approach is to “treat everyone the way you want to be treated.” However, in other cultures, it may be the norm to treat others hierarchically on the basis of respect, usefulness to the project, strategic opportunity, or direction of specific policy or politics. As such, the golden rule of reciprocal treatment may not be as effective. It has been my experience that in very hierarical social structures, treating a lower ranked person and a higher ranked person the same is disturbing to their comfort, while another culture takes great efforts to assure that there is no preferential treatment of individuals. Accepting the situational norm can help the functioning of a team, or when it is made of diverse individuals; the roles assigned can vary to fit each person’s needs within the team. 3) Another leadership approach might be to “let everyone have an opportunity.” Culturally aware leaders, however, will understand that there needs to be a distinction between strong leadership and democracy. Some individuals may desire to climb the ladder quickly, while others may be content with job security. Along those same lines, certain individuals may not want increases in responsibility, but rather continue performing well at their current level. A culturally aware leader must strike a balance between increasing skills and comfort, security and learning, friendship and merit. One team that I work with has several high performing individuals who prefer to spend their days in predicable activities which leave emotional and physical energy to spend on significant after-work accomplishments, like extreme sports, theater, or charitable work. Other members search continually for additional new challenges at the office. All interact in their own way to successfully accomplish the team goals. 4) As a leader, it may seem appropriate to divulge all the details to your employees or partners. Culturally aware leaders understand that there needs to be a balance of privacy and transparency, compartmentalization and optimization, as well as understanding ownership of information. In some cases too much information may be paralyzing to a team member who needs to focus on one goal without being overwhelmed with information requiring decisions. 5) It may also seem intuitive that good people will always perform well. However, this may occur only if those people are in the right place and are comfortable with their assignments. Some expats are affected by the 52 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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lack of a community and may need more support. Seemingly low stress work settings are actually intensely stressing due to the efforts of living in a foreign environment. Socialization can help with such situations, but the high stress level may remain for the expat, no matter how much accommodation is made. 6) Cultural awareness goes beyond understanding a person’s culture with respect to geographic location and cultural background. Cultural awareness also manifests itself in understanding other types of diversity. These may include differences in gender, age, religion, education, language, and military/civilian/academic backgrounds. Recently while serving on a hiring selection panel with someone from academia and a former military officer, we realized that our value systems for evaluating employee skills were very different and could only be complementary after we spent time discussing the reasons behind them. We all developed better skills from that experience. Note that cultural diversity within an organization is critical. It enables different perspectives (including international and intercultural viewpoints), flexibility and responsiveness to meet challenges of complicated decision making. After all, diversity is manifested in nature and is a strength of nature. The above account gives one set of viewpoints on global leadership competencies. There are many other ideas and reports on the same topic in the literature (e.g., refs. (4–9)). Interested readers may consult those additional references.

Role of Scientists and Engineers in Diplomacy Science and engineering always have an important role in diplomacy. There is the research and academic exchange, which permits the flow of people, ideas, and information across national boundaries and promotes international friendship and mutual understanding. Science and engineering also enable countries to work together to solve global problems, such as clean water, clean air, diseases, sustainability, and energy. Scientists and engineers can also promote world security by destroying weapons of mass destruction, e.g., OPCW’s mission and ongoing work. In addition to their scientific and technological contributions, engineers may find their technical training particularly useful in international diplomacy. In his article, “Engineering Diplomacy: An Underutilized Tool in Foreign Policy”, Meshkati (10) pointed out that “engineers are mostly trained to be mindful of ‘constraints’ while generally searching and settling for an ‘optimal’ solution, which may not necessarily be the ‘best’ or ‘ideal’ solution to a given problem. This optimization process is a key ingredient for appreciating the limitations of diplomacy while taking full advantage of its potential.” Neureiter (11) has noted that “scientists and engineers with firsthand experience of the scientific, technical, and health issues that are fast becoming the main items on the diplomatic agenda will become the diplomats of the twenty-first 53 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

century. Technology has become a kind of new international currency, and intellectual property rights and technological competitiveness are items on the global trade agenda and the subject of international negotiations. Engineers can make unique contributions to discussions in all of these areas.” Thus, scientists and engineers have skills that are valuable in science diplomacy. Science and diplomacy may seem worlds apart, but the principles for success in either endeavor are strikingly similar. The value of mutual respect, collaboration and diversity of thought are the keys to success in both.

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OPCW/ACS Collaboration Since this is an ACS book, it may be useful to report on the ongoing collaborative efforts between ACS and OPCW. ACS is known to be a strong supporter of diversity and intercultural management. It dispenses community sourced information and provides resources for continuing education for its members. ACS’s Chemical Abstract Service (CAS) maintains the world’s largest database on chemical information. OPCW and CAS have been working together to assign accurate CAS Registry Numbers® to the Chemical Weapons Convention’s “scheduled chemicals” for inclusion in its Scheduled Chemicals Database. Since 2008, more than 31,000 CAS registry numbers have been added to the database. These substances are now available in NCI™ Global, the new CAS regulatory information system (12).

References 1. 2.

3. 4.

5. 6. 7.

8.

Organisation for the Prohibition of Chemical Weapons (OPCW) website. https://www.opcw.org/ (accessed 2/27/2016). Bird, A.; Osland, J. Global competencies: An introduction. In Handbook of Global Management; Lane, H., Maznevski, M., Mendenhall, M., McNett, L., Eds.; Blackwell: Oxford, 2004; pp. 57–80. Mendenhall, M. E. The Elusive, yet Critical Challenge of Developing Global Leaders. Eur. Manage. J. 2006, 24, 422–429. Osland, J. S.; Bird, A.; Mendenhall, M.; Osland, A. Developing global leadership capabilities and global mindset: a review. Handbook of Research in International Human Resource Management; Stahl, G. K., Björkman, I., Eds.; Edward Elgar Publishing: Cheltenham, U.K., 2006. Mendenhall, M. E.; Reiche, B. S.; Bird, A.; Osland, J. S. Defining the “global” in global leadership. J. World Business 2012, 47, 493–503. Lane, H. W.; Maznevski, M. International Management Behavior: Global and Sustainable Leadership; Wiley: Hoboken, NJ, 2014. Clawson, J. G. 11 Key Characterics of a Global Business Leader; https:/ /ideas.darden.virginia.edu/2014/01/11-key-characteristics-of-a-globalbusiness-leader/ (accessed 2/27/16). Vilet, J. Five Critical Skills for Effective Global Leadership; http:/ /blog.octanner.com/leadership/5-critical-skills-for-effective-globalleadership (accessed 2/27/2016). 54 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

Rentfrow, T. J. Effective Leadership within a Multinational Environment; http://www.regent.edu/acad/global/publications/lao/issue_10/rentfrow.htm (accessed 2/27/2016). 10. Meshkati, N. Engineering Diplomacy: An Underutilized Tool in Foreign Policy. Science & Diplomacy; Vol. 1, No. 2 (June 2012); http://www.sciencediplomacy.org/perspective/2012/engineering-diplomacy (accessed 2/27/2016). 11. Neureiter, N. P. Engineering & Foreign Policy; https:// www.nae.edu/Publications/Bridge/EngineeringForeignPolicy/ EngineeringandAmericanDiplomacy.aspx#about_author7519 (accessed 2/27/2016). 12. NCI Global, the CAS regulatory information system. https://www.cas.org/ products/nciglobal (accessed 2/27/2016).

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9.

55 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

Chapter 8

Water: Global Issues, Local Solutions

Publication Date (Web): August 17, 2016 | doi: 10.1021/bk-2016-1219.ch008

Ellene Tratras Contis* Department of Chemistry, Eastern Michigan University, 501R Science Complex, Ypsilanti, Michigan 48197, United States *E-mail: [email protected].

Water resources are finite in the world and its declining quality is a major issue. Producing potable water to meet the demands of an increasing urban population is becoming a challenge of competing priorities: increased water re-allocation from agriculture to urban demands, degraded water quality, depleted groundwater, an increased need for water sanitation services, and threatened food and economic security. This article was produced from discussions that took place at the ACS Global Innovations Imperatives (Gii) Water Innovation Treatment & Solutions (WITS) Forum on December 3-5, 2014 at the Institute of Materials Research & Engineering (IMRE) in Singapore. Included in this report are updates of water management experiences in Singapore and Tanzania, education, research and innovation issues.

Introduction The Global Water Challenge With the world’s population expected to rise from 7 billion in 2014 to 9 billion by 2050 (1) and continuous industrial growth across the globe, water has become a critical strategic resource (2). Although 70 per cent of our planet is covered with water, saline water in seas and oceans makes up about 97 per cent of this amount and only 3 per cent can be counted as freshwater. The total usable freshwater supply for ecosystems and humans is a mere 0.5 per cent of all freshwater resources. The remaining 2.5 per cent is locked up as ice in the Antarctica, the Arctic and glaciers. Currently, 748 million people worldwide lack access to a potable water supply and 2.5 billion lack access to sanitation (3). © 2016 American Chemical Society Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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Today, 54 per cent of the world’s population lives in urban areas. By 2050, this figure will increase to 66 per cent (4). According to the United Nations (UN), the world’s urban population is expected to surpass six billion by 2045, having grown from 746 million in 1950 to 3.9 billion in 2014. Asia is home to 53 per cent of the world’s urban population, followed by Europe with 14 per cent, and Latin America and the Caribbean with 13 per cent. By 2050, India is projected to add 404 million urban dwellers, China 292 million and Nigeria 212 million. Coupled demographics and urbanization is the focus on water as a criterion for assessing the physical, economic and environmental viability of energy projects. Energy and water are interdependent and the water–energy nexus is a significant factor that cannot be ignored. Water is used extensively in power generation, the extraction, transportation, and processing of fossil fuels, and agricultural irrigation. Similarly, energy is vital to power systems that collect, transport, distribute and treat water. In 2010, global water withdrawals for energy production were estimated at 583 billion cubic meters (bcm), or some 15 per cent of the world’s total water withdrawals (5). Of that, water consumption – the volume withdrawn but not returned to its source – was 66 bcm or about 11 per cent of energy-related water withdrawals. Water resources are finite. Its unreliable and declining quality are major issues. Producing potable water to meet the demands of an increasing urban population is becoming a challenge of competing priorities: increased water re-allocation from agriculture to urban demands, degraded water quality, depleted groundwater, an increased need for water sanitation services, and threatened food and economic security. Harnessing water requires infrastructure for a steady supply of water, efficient equipment to collect and treat water, and the re-use of resources to conserve water. Industry players include petrochemicals, steel, oil and gas, mining, chemical and consumer goods, power generation, and municipal supplies. The diversity of stakeholders and their sometimes conflicting demands add complexity to an already challenging problem that perhaps could create new opportunities for collaboration and innovation. Singapore: A Story of Four Taps (6) The Singapore water story is a unique example of how a country with a water supply that is more than 50 per cent non-potable, has used foresight and stakeholder engagement to create a strategic response incorporating risk planning and public private partnerships. Singapore uses four “national taps” – local catchment, NEWater, desalinated water, imported water – to manage the entire water cycle from the sourcing, collection, purification and supply of drinking water, to the treatment of used water and storm water management. Boasting one of the world’s lowest percentages (5 %) for unaccounted-for water, Singapore has 17 reservoirs and a total catchment area that is two-thirds of the island’s land area. Its largest catchment area, Marina Catchment, is an urban catchment of 10,000 ha that is 1/6 the size of Singapore. Dr. Lim Mong Hoo (6) talks about how Singapore’s Public Utilities Board (PUB) has to work closely with land-use planning agencies such as the Urban Redevelopment Authority (URA) and the Economic Development Board (EDB) 58 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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to coordinate the siting of urban development projects and industrial clusters for more effective water management planning. Two innovations in Singapore that merit attention are NEWater (7), a high grade reclaimed water purified using membrane technologies developed by Hyflux, and the Deep Tunnel Sewerage System, a used water superhighway to centralize the reclamation of used water by linking existing sewerage pipes from homes and industries to water reclamation plants. It is also important to note that Singapore uses pricing to recover the full cost of its water production and supply (8), and create shared ownership and responsible usage of Singapore’s water resources. Singapore’s water tariff is one of the highest in Asia, excluding Japan (9).

Managing the Complete Water Cycle The Asia-Pacific region is home to 60 per cent of the world’s population but has only 36 per cent of its water resources (10). Per capita water availability is the lowest in the world. The region has some of the world’s fastest-growing megacities, a development driven by internal migration and urbanization. Between 2010 and 2025, a predicted 700 million people will be added to the growing numbers requiring municipal water services. It is no surprise that water-rich countries, such as Malaysia, Indonesia, Bhutan and Papua New Guinea, are facing urban water supply and quality constraints, particularly from domestic sewage. Approximately 150 to 250 million cubic meters per day of untreated wastewater from urban areas are discharged into open water bodies or leached into the subsoil. According to a January 2013 Bloomberg New Energy Finance study on water reuse, the USA and Europe discharge 90 per cent of their wastewater annually, but directly re-use only 6 per cent and 2 per cent respectively (11). China treats around 80 per cent of its wastewater but directly re-uses only 8 per cent. In the Middle East and North Africa, only 40 per cent of municipal wastewater is treated for use in agriculture, and 8 per cent for reuse, while the remainder is discharged into the ocean or other water bodies. An American Chemical Society report in 2012 anticipated that seven in 10 of the more than 3,100 US counties could risk freshwater shortages by 2050, owing to increasing water demand and climate change impacts (12). Water shortages arise in three ways: environmental change (human-induced decline in the quantity or quality of a resource), population growth (reduction in per-capita availability), and unequal distribution (the concentration of resources in the hands of the few) (13). According to Thomas F Homer-Dixon, countries need technical ingenuity (to develop technologies that compensate for environmental loss) and social ingenuity (to create organizations and institutions to buffer people from the effects of scarcity and provide the right incentives for technological entrepreneurs) to manage scarcity. Singapore, with a land area of 710 sq km, a population of 5.3 million, domestic water consumption per capita of 151 liters/day (14), and an average water demand of 1.8 million cubic meters/day (400 million gallons/day), seems to have employed 59 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

both technical and social ingenuity to manage its limited water resources. It uses a centralized approach to achieve water security and reduce dependency on external resources, and combines both supply-side and demand-side management strategies to create a large-scale urban water infrastructure and an integrated water resource management (IWRM) network that is dynamic, collaborative and sustainable (15).

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Public Outreach and Education In 2000, the Los Angeles Department of Water and Power (LADWP) announced the completion of the Donald C Tillman water reclamation plant in Van Nuys, capable of providing water to 120,000 homes (16). The plan was for sewage to be treated at the plant and then pumped to spreading fields near Hansen Dam where, over five years, it would filter through sandy soil and gravel into an underground reservoir (17). Public opposition greeted the announcement, partly as a result of inopportune timing (18) and even though the LADWP assured residents that the treated water from the Tillman plant would be “almost potable” and have “a purity indistinguishable from unpolluted rainwater,” it could not overcome the “yuck factor” that accompanied public perception. In 2007, various stakeholders comprising community leaders, elected officials, environmental and recreational groups, and local visionaries completed the Los Angeles River Master Plan, outlining a 20-year blueprint for restoring and managing the river (to maintain flood protection and safety, as well as environmental conservation and celebration of community neighborhoods). In May 2014, the Army Corps of Engineers endorsed a $1 billion commitment in support of the plan to revitalize the river; funding will be shared among federal, state and local agencies. The LA story highlights the importance of timing, strategic preparation and stakeholder engagement. Similarly, the Singapore water story embraces these three elements, together with public private participation, as critical success factors in the water innovation framework. Public outreach efforts through the organization of workshops, seminars, exhibitions and community engagement events help to educate citizens and create collective ownership of Singapore’s water assets. Even then, the “yuck factor” associated with treated wastewater (NEWater) remains a barrier to public consumption (19). Singapore’s IWRM achievements in the municipal sector have gained global recognition through the organization of an annual Singapore International Water Week (SIWW) that converges policy-makers, industry leaders, experts and practitioners to address challenges, showcase technologies and discover opportunities for collaborative entrepreneurship (20). R&D is actively promoted through the establishment of a WaterHub in Singapore, providing shared facilities and lab testing capabilities, as well as networking, intelligence sharing and partnership opportunities. Tanzania: A Community Response (21) Access to, and use of, water resources has global implications. Water security and safety concerns have a direct impact on food security and safety, health, energy 60 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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security and economic prosperity. Water security depends on the availability and reliability of water sources while water safety hinges on the quality of the source water and its protection from contamination. Risks include natural disasters (e.g., storms) and anthropogenic threats that encompass population growth, industry, agriculture, transport, water use practices, and climate change. Water sources vary widely, depending on location and economic capacity, from municipal sources for urban communities to multiple sources (wells, boreholes, rivers, streams, rainwater harvest) for rural communities. Singapore is an urban center that has access to funds and resources, including technology that it can use in its water management program. In less industrialized countries, where access to, and use of, such resources is limited, the natural recourse is to create local solutions to address water issues. Prof Isai T Urasa talks about Tanzania where wastewater stabilization ponds (WSPs) are a natural method of wastewater treatment. They consist of a series of shallow, man-made, anaerobic facultative and maturation ponds that remove organic contaminants by natural biodegradation, requiring no external input, chemical treatment or disinfectant. WSP technology is particularly suited for tropical regions where the intensity of the sunlight is favored for the natural waste removal process, that is, for communities with limited economic capacities. A typical wastewater treatment facility in the USA uses mechanical and chemical processes, and may have up to three stages of treatment – primary, secondary and tertiary – while a WSP system comprises a primary and two secondary facultative ponds and maturation ponds, accompanied by a distribution chamber. The facultative ponds are designed to remove organic contaminants by natural biodegradation: the upper portion is aerobic while the lower portion is anaerobic. Facultative ponds also allow suspended solids to settle. Maturation ponds, on the other hand, are more aerobic, promoting oxidation processes and allowing the removal of nutrients and pathogens. Threats to pond efficiency include overloading due to increased input, sludge build-up, algal blooms, plant material, and other types of debris. The Njoro community water project in Tanzania was established in 2000; in 2001, it established partnerships with Egerton University, a local institution, and the Catholic diocese of Nakuru, a non-governmental organization (NGO). The operational features of this project empowered it to develop capital, seek community participation, and use an integrated management technology to engage actively in policy making as well as incorporate poverty alleviation initiatives. Njoro had 15,000 inhabitants who lived in a semi-arid region that experienced rainfall of 100 cm/year. The Njoro community used source water from boreholes and faced the challenge of suspect water quality involving microbiological contamination associated with poor sanitation services and agriculture, as well as a high salt content (where the fluoride levels were more than 10 ppm, compared to safe fluoride levels of 1.0 to 1.5 ppm). The project established communal water supply points and set up a management committee comprising 11 members, including six women. It also introduced user fees and provided individual consumer connections that helped in the capacity building process. The partnership secured financial resources, provided water management and distribution expertise, and facilitated access to 61 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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essential technical skills such as well construction, water distribution networks, water quality assessment and assurance. According to Dr. Urasa, research opportunities for university faculty and students were created in the form of water quality index measurements: biochemical oxygen demand (BOD)/chemical oxygen demand (COD), pH, nutrients and heavy metals. Source water quality assessments were made using physical/chemical parameters to analyze the impact of pesticides and land use practices, as well as bacterial contamination. To mitigate/remove the fluoride content in the water, a bone char purification process using cow or bovine bone was introduced. Animal bone was collected from the community and through a university/community/NGO partnership, the bone was converted to a defluoridation filter using a process of charring and grinding. The bone char was placed in packets fitted with faucets and communal water tanks were retrofitted accordingly. The Tanzanian water project is a good example of a local community response to a water need. Significant features of this IWRM program included research and training strategies, consistent operational monitoring, the transfer of new technologies and new knowledge, aided by the presence of community guidelines and involvement. Developing countries with predominantly rural populations can benefit from small infrastructure schemes that can provide water and sanitation services in a manner that consumes fewer resources, is flexible and sustainable, and costs less. Small infrastructure or distributed networks allow for control over locally appropriate efficiency measures and promotes resiliency, empowering communities by creating a local multiplier effect through scalability and adaptability. Coordination between engineers, chemists and policy makers is both a prerequisite and an outcome, reinforcing the power of a multi-disciplinary approach toward a global challenge.

Water Innovation: The Need for Context and Education Before embarking on a discussion of innovation in the water sector, it would be useful to determine the impetus for innovation (why), the priorities for innovation (what), where the efforts of individual innovators fit in the big picture (where and who), and how the global, multi-disciplinary, multi-stakeholder innovation efforts can be coordinated (how) to facilitate sustained access to water services and water quality standards for all. According to Prof. Garrick E Louis (22), innovation for water treatment and supply can be defined as the development of artifacts to improve the performance of the water sector. Artifacts include devices, policies, programs, and processes. Measures of performance in the sector include quantity, quality, accessibility, efficiency, affordability to users, profitability to service providers, the environmental impact and sustainability of the service lifecycle, and its resilience in the face of challenges. Governments understand that water research and innovation currently lack a strategic approach to the highly diverse and interrelated challenges presented 62 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

by the water ecosystem. The need for a coherent and unifying framework that embraces diversity, complexity and innovation is critical to the coordination of different public sector agencies, as well as the promotion of public private sector collaboration across geographical boundaries.

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The Water Innovation Grid: Building Capacity Prof. Louis has identified eight capacity building factors that determine sustained access to adequate safe water and sanitation services (Table 1). These factors can be used to assess the priorities for water innovation across all the unit processes in water treatment and supply, such as abstraction, treatment, storage, distribution and re-use. Additionally other issues can be assessed, such as financing or O&M. A discussion of water management issues inevitably revolves around three distinct elements: economics, water quality and the environment. In fact, these three issues are interconnected and need to be considered in context and relation to each other rather than separately. In order to manage water security effectively, the use of economic and policy instruments needs to be considered in terms of the impact on society and the environment, that is, the triple bottom-line (having economic, social and environmental implications), and as part of a wider IWRM framework.

Table 1. Eight Factors That Determine Sustained Access to Adequate Safe Water and Sanitation Services 1. Institutional

Policies, programs, procedures

2. Human Resources

Professional, skilled, trained literate, untrained illiterate

3. Technical

Supply chain, support services

4. Economic/ Financial

Public and private suppliers, bond service, fees or general taxes, grants-in-aid

5. Environmental /Natural Resources

Carrying capacity of media, seasonal capacity of sources and sinks

6. Energy

Grid electricity, reliability, intensity

7. Sociocultural

Effective participation rate

8. Service

Quantity, quality

63 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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IWRM is a framework designed to improve the management of water resources based on four key principles adopted at the 1992 Dublin Conference on Water and the Rio de Janeiro Summit on Sustainable Development. These principles hold that: (1) freshwater is a finite and vulnerable resource essential to sustain life, development, and the environment; (2) water development and management should be based on a participatory approach, involving users, planners, and policy makers at all levels; (3) women play a central part in the provision, management, and safeguarding of water; and (4) water has an economic value in all its competing uses and should be recognized as an economic good (23). Stakeholder engagement, as evidenced in public private partnerships, is recognized as a critical success factor in formulating local responses to meeting IWRM needs. Ultimately, the major benefits of IWRM include the alleviation of poverty and disease, water conservation and re-use, agricultural production and rural water supply, the protection of aquatic ecosystems, capacity building through public participation, and a multi-disciplinary approach to water treatment and innovation. Singapore has achieved considerable success in its water management by anchoring its water sustainability measures in a strong institutional framework that includes integrated master planning and development and dynamic urban governance (24). It understands that it needs to build a diversified and sustainable supply of water using, among other efforts, membrane technology (25) to develop new, low-cost membrane systems to assist in water treatment, desalination and water reclamation. Its strategy for water sustainability includes outreach to the public through community engagement and education, and active participation with markets, reinforcing the importance of capacity development as identified in the water innovation grid.

The Power of Education: MOOCs In February 2014, the International Workshop on Governance ‘of’ and ‘for’ Sustainable Development Goals, organized by the United Nations University Institute of Advanced Studies (UNU-IAS), the Earth System Governance Project and the POST2015 project (hosted by the Tokyo Institute of Technology and sponsored by the Ministry of Environment, Japan), resulted in a series of policy briefs, the second of which advocated “water literacy” as a response to water-related sustainability challenges. In discussions about the Post-2015 Development Agenda, education was considered a major target domain (26). Global education outreach in the form of Massive Open Online Courses (MOOCs) is one way to focus on the needs of the “water–education nexus.” In 2007, the first courses about water treatment were offered as OpenCourseWare (OCW) (27). In November 2013, Delft University of Technology (TU Delft) offered two MOOC courses on solar energy and an introduction to water treatment, the latter of which received a registration of 29,000 students on the edX platform (28). In addition to the 19 MOOCs TU Delft offers are over 140 OCW courses that have 1,000 unique online visitors per day. 64 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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MOOCs provide a global platform for the delivery of knowledge on demand. Prof Doris van Halem (29) believes that water MOOCs can positively influence the way in which chemists and other scientists will access education (30). In her opinion, increased knowledge across various experience levels and geographies will positively affect the field of water treatment globally. To increase the impact of MOOCs, TU Delft is planning translations into Arabic and Chinese, and collaborates with local partners in Mozambique and Colombia. MOOCs also facilitate linkages between education and PhD research at TU Delft in the areas of urbanizing deltas of the world (wastewater reclamation project in Mozambique), hand pump arsenic removal (in Bangladesh and Nicaragua), and a riverbank and gravel filtration project (in Colombia). The global outreach of online education has the potential to address inequality, poverty and exclusion issues experienced by developing countries and the financial, human capital and resource constraints that undermine progress toward achieving effective learning environments for quality education (31). The implications for water education for chemists, engineers and other scientists, as well as the public, can only be positive. This outreach to a wider community to create awareness through MOOCs highlights the importance of education. Similarly, Singapore’s efforts to educate its population through community engagement projects and campaigns are part of this global “water literacy” movement.

Innovations in Water Treatment New water projects are complex and dynamic. In many developed and developing nations, government-controlled water operations are fragmenting and re-grouping under privatization. The adoption of technology is accelerating while international and domestic standards are becoming increasingly stringent. Today, engineering a large water project usually involves cross-border cooperation and the participation of talent that has a global profile. The drivers for the growth and development of the water sector include declining freshwater resources, ageing water and wastewater infrastructure in the developed regions, a rapid increase in population in the developing countries and major urban centers, and increasingly stringent regulations, particularly in the areas of water re-use and wastage. Risks include insufficient or unreliable water supply for existing and future operations, coupled with an insufficient capacity to treat and dispose of drinking water, wastewater, process water and utility water. In addition, it is becoming increasingly difficult to secure new permits and legal licenses to operate. Increased costs in raw and wastewater treatment and disposal further compound the problem. Already, historic disposal practices are creating future liability issues while the overcrowding of small and local players is contributing to unhealthy competition in the market. Diminishing water resources, rapid industrial development and population growth are reducing the use of conventional water and wastewater treatment processes and making them less efficient. Today, synthetic organic compounds, 65 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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nutrients and inorganic materials in the water can compromise water quality, health and the environment, and consequently, need to be removed from water. Producing high-purity water for drinking and industrial water, with improvements in quality and cost-effectiveness, makes advanced treatment technologies more demanding and widely accepted. The global water market, worth $425 billion in 2010 (32), is divided into two distinct segments: water and wastewater utilities (58 per cent), and water solutions and services (42 per cent). Prof. Ellene Tratras Contis (33) understands that a big picture perspective is essential for clarity and identification of where the key issues and risks co-exist. The manufacturing and power generation industries have unique water requirements that, in turn, affect water quality through waste discharge. This, in turn, has consequences for downstream users and aquatic ecosystems. Access to water and its quantity and quality limits the production of oil, power, products and goods, as well as the consumption of end products and services. The lack of potable water increases the threat of water-borne diseases and epidemics while the risk of the destruction of ecology and ecosystems is very real.

Membrane Technology Today, membrane technology has emerged as a significant development in water treatment, particularly desalination. Traditional water treatment methods include physical separation techniques for particle removal, biological and chemical treatments to remove suspended solids, organic matter and dissolved pollutants or toxins, and evaporative techniques and other physical and mechanical methods (34). Membrane separation replaces or supplements these techniques by the use of selectively permeable barriers, with pores sized to permit the passage of water molecules but small enough to retain a wide range of particulate and dissolved compounds. According to Prof Wang Rong (35), the reliance on membranes in the water cycle has grown by at least 15 per cent per year, with almost a megaton of water passing through membranes in Singapore per day. Globally, desalination by reverse osmosis membranes now exceeds thermal desalination; membrane bioreactors are becoming widespread; and the use of low pressure membranes for water treatment, coupled with reverse osmosis, has more than doubled in the past five years. Prof Rong, however, thinks that while membrane technology has greatly enhanced our capability of tackling the challenges of increased population growth and scarcity of freshwater resources, as well as more stringent environment regulations, the current membrane processes still suffer from high energy consumption (for example, in reverse osmosis), chemical usage (such as oxidants for organics degradation) and the generation of a considerable amount of waste stream (such as reverse osmosis brine for inland applications). In addition, their benefits are also constrained by the less than ideal separations (low permeability and selectivity) of synthetic membranes due to the lack of functionality and controlled architecture. 66 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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One of the biggest challenges in desalination is its high energy consumption. Feed water salinity has the most significant impact on power consumption. The desalination process must overcome osmotic pressure to reverse the flow, forcing water from the “salty” feed side of a membrane to flow to the “purified” water (also known as permeate or product water) side of the membrane – hence, “reverse osmosis desalination” (36). Theoretically, about 0.86 kWh of energy is needed to desalinate 1 cubic meter of salt water (34,500 ppm). Energy is the single largest expense for desalination plants, accounting for as much as half of the costs of transforming seawater into potable water, according to a 2013 Pacific Institute report (37). A 25 per cent increase in energy expenses would raise the cost of producing water by about 9 per cent and 15 per cent at reverse osmosis and thermal desalination plants respectively. Prof Rong is aware that membrane technologies consume high levels of energy and in fact, reminds us to pay attention to the water–energy nexus. She believes that forward osmosis and pressure retarded osmosis membrane technologies have great potential for water production and energy recovery (38). Low pressure nanofiltration membranes can be used for the pre-treatment of seawater to enhance system performance and reduce energy consumption while hydrophobic microporous membranes can be used for membrane distillation. Aquaporins-based hollow fiber membranes offer promising performance for water re-use and desalination. The biggest technical challenge with the use of membranes for wastewater treatment is the high potential for fouling. Membrane fouling – which can be caused by colloids, soluble organic compounds, and micro-organisms that are typically not well removed with conventional pre-treatment methods – increases feed pressure and requires frequent membrane cleaning, leading to reduced efficiency and a shorter membrane life (39). Other technical barriers may include the complexity and expense of the concentrate (residuals) disposal from high-pressure membranes. Dr. Li Dongfei adds to the question and answer portion on membrane technology by sharing his company’s innovations in this area and emphasizing the importance of the pre-treatment of membranes as a key factor in successful sea water reverse osmosis (SWRO). He discusses the design of membranes and proposes an outside-in design as opposed to an inside-out design for more effective air scouring/enhanced cleaning as well as foulant acceptability. Hyflux built Singapore’s first SWRO plant in 2003 and China’s largest SWRO plant in 2004 and today, lays claim to the world’s largest SWRO plant in Magtaa, Algeria, with a capacity of 500,000 cubic meters/day. R&D Using Local Knowledge and Ecosystems Research institutes pursuing environmental and water studies deliver global impact by providing interdisciplinary collaborative research platforms to facilitate the conduct and coordination of strategic thematic research. At Prof Ong Choon Nam’s (40) research institute, environmental surveillance and treatment, green chemistry and sustainable energy, and the impact of climate change on the environment provide research tracks for scientists and graduate students. 67 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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The water–energy nexus continues to be a significant research topic in Singapore. Mangrove system integration is being investigated as a natural desalination model. Water channels (“aquaporins”) in the tree’s salt glands provide selective passage that allows only water molecules to pass through while salts are being retained (41). Researchers are continuing the study of the salt glands’ rhythmic salt removal mechanism, excretion and re-absorption of water as it is clear that each salt gland serves as a micro-desalination factory. They hope that the mangroves will yield lessons for the next novel, bio-inspired model for future desalination. Since the advent of the first green fluorescent protein (GFP) transgenic fish in 1995, this fish technology has been used for the analyses of gene expression patterns and tissue/organ development, cellular localization of protein products, etc. Today, GFP transgenic fish are being used as biomonitoring organisms for the surveillance of environmental pollution. Another dimension of global environmental concern are blue-green algae blooms (also known as cyanobacteria), found particularly in nutrient-enriched water, such as western Lake Erie in 2011. Heavy spring rains had flushed a large amount of phosphorus into the lake, nurturing the growth of the harmful algae blooms (42). In August 2014, nearly 500,000 residents in northwestern Ohio were warned not to drink or boil their tap water (43). Blue-green algae can produce toxins that affect the liver and nervous systems when the water is consumed in sufficient quantities. The most effective method of preventing blue-green algae blooms is to minimize the nutrient load entering waterways through actions such as planting or maintaining riparian vegetation, conserving soil, and implementing appropriate treatment and disposal of stormwater, agricultural, industrial and sewage effluent (44). Scientists are currently experimenting with magnetic nano iron and online phosphate sensors, and developing cost-effective carbon nanotube electrochemical filters to remove such contaminants (45). Growth areas in the water sector include industrial water solutions, particularly in the light of emerging contaminants, and smart water management incorporating information technology (IT), data analytics and smart meters in water plants and networks. Researchers in Singapore have developed the New Smart Water Assessment Network (NUSwan), using low-cost, autonomous robotic swans capable of real-time sampling in freshwater bodies, acquiring diverse data through autonomous sensing nodes and centralized data storage tools (46). At GE’s Singapore Water Technology Center, Dr. Adil Dhalla and his team are focused on innovation in water recycling and reuse, wastewater treatment, and advanced analytical solutions. Their technology development focuses on recycling and reuse solutions for both domestic and industrial sectors. Some of the solutions developed include various combinations of pressure driven separations (e.g. Reverse Osmosis and Nanofiltration), Ultrafiltration, Membrane Bioreactors, Electro-separation systems, and membrane chemicals. Another key part of the centre is an Analytical Technology Lab, which provides analytical chemistry and scientific support. This includes research and development into membrane autopsy, corrosion testing and analyses of wastewater. 68 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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Water–Energy Nexus: New Opportunities The power consumption of water and wastewater treatment processes influences the choice of technologies and methodologies to maintain environmental sustainability, particularly when considering remote or under-resourced areas. For Prof Jean Andino, the water–energy nexus is a seminal component of the water scarcity issue. The use of alternative water sources may lead to enhanced energy demands for treatment, ultimately increasing GHG emissions, and exacerbating both global climate change impacts and water availability. Thus, it is important to develop novel treatment methods that employ energy alternatives (e.g., the use of sunlight and new materials). Prof Andino believes that new photocatalytic materials could be used either for minimizing the direct release of a GHG (specifically carbon dioxide) by recycling it to a useful resource (e.g., in the presence of a surface and water vapor, the product might be methane, a fuel) (47–51), or using the novel materials for the light-driven treatment/removal of organic compounds in aqueous treatment systems. To further investigate this opportunity, more materials development, characterization and testing are needed. Maintaining a dynamic relationship between chemistry, nanotechnology and materials science is critical for innovation and the discovery of new solutions to address the global water challenge. In Singapore, the research institutes, universities and policy makers participate in a continuing dialogue that brings together collective knowledge and insights that hopefully will result in more environmentally sustainable water technologies.

The Future of Water: Global Issues, Local Solutions From 1980 to 2010, China was the largest creator and emitter of nitrogen globally (52). The country’s use of nitrogen as a fertilizer increased about threefold while livestock numbers and coal combustion increased about fourfold, and the number of automobiles about twentyfold (all of these activities release reactive nitrogen into the environment). Increased levels of nitrogen lead to decreased air quality, acidification of soil and water, increased GHG concentrations and reduced biological diversity. Nitrogen-based fertilizers contribute to GHG emissions by stimulating microbes in the soil to produce more nitrous oxide, the third most important GHG behind carbon dioxide and methane (53). Agriculture, primarily in the form of increased nitrogen fertilizer use, accounts for around 80 per cent of human-caused nitrous oxide emissions worldwide. Globally, agriculture is the principal user of water, accounting for 70 per cent of water use, followed by industry (including mining and power generation) at 19 per cent and municipal networks, which serve the water needs of public and private users, at 11 per cent (54). Water scarcity occurs when demand for water exceeds the available sustainable resources. Water scarcity is an increasingly frequent and worrying phenomenon that affects at least 11 per cent of the European population and 17 per cent of EU territory (55).It is estimated that some 20–40 per cent of Europe’s available water is being wasted because of leakages in the supply system, lack 69 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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of installed water saving technologies, too much unnecessary irrigation, and dripping taps. In a “business as usual” scenario, water consumption by the public, industry and agriculture would increase by 16 per cent by 2030. Population growth and increasing social pressures on global water resources are forcing communities and governments to focus on the future of water availability. Climate change is expected to further exacerbate the demands on water-stressed regions, home to 5 billion of the world’s 9 billion people in 2050 (56). The issues of water access, availability and quality are global issues that require urgent attention today. Ultimately, the solutions that can address global water issues will come from the collaborative efforts of different groups of people – including chemists, engineers, materials scientists and policy makers – who understand that the most effective way of approaching a scientific challenge or problem is to adopt a multi-disciplinary approach.

Lessons Learned It is necessary to remember that clarity, coherence and collaboration are critical for the success of any water management program. The UK, for example, has developed a Water Research and Innovation Framework 2011-2030 to highlight key water research and innovation priorities and mechanisms. The UK Framework recognizes that government, research organizations, academia, non-governmental organizations (NGOs) and industry need to work with other users of water to “provide the evidence to support effective decision-making, joined-up policies, and a coordinated coherent approach to the development and dissemination of new knowledge, technologies and skills” (57). Singapore’s journey toward self-sufficiency and sustainable development in the water sector is highlighted by collaboration, strategic foresight and successful implementation. Strategies include the expansion of water catchment areas, development of water demand and supply mechanisms, water pollution control, investments in R&D, and public-private partnerships (58). The water innovation grid is a useful reference for governments and agencies that want to have clarity in capacity building and a framework for sustainable practices. Rural communities in developing countries can learn from the Tanzanian water project while chemists are reminded that their research work cannot be successful in isolation. The water–energy nexus demands that different elements in the ecosystem have to interact, adapt and respond to each other to co-exist harmoniously to create innovative and sustainable solutions to the global water challenge. A big picture perspective is essential to a more critical understanding of key issues and risks and leads to more insightful strategic visioning in the water sector. Astronaut Ron Garan talks of the need to develop an “orbital perspective” (59) which is essentially an awareness of our common humanity and an understanding that global problems have local solutions and can be resolved through tolerance, dialogue and cooperation. 70 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

Where Do We Go from Here? Water has 60 properties which differentiate and distinguish it from most liquids (60). To deepen and expand our knowledge of water and create innovative solutions to address critical water issues, a multi-disciplinary focus is needed. As Dr Adil Dhalla says, “Solutions do not come from one stream of science or engineering. They come from a group of people working together, using their skills. The understanding of how to approach a scientific challenge or problem is almost always now a multi-disciplinary approach.” There is no other way.?

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Acknowledgments This document was produced from discussions that took place at the ACS Global Innovations Imperatives (Gii) Water Innovation Treatment & Solutions (WITS) Forum from December 3-5, 2014 at the Institute of Materials Research & Engineering (IMRE) in Singapore. Thanks are due to the participants, including Andy Hor, Isai Urasa, Shah Kwok Wei, Garrick Louis, Ong Choon Nam, Jean Andino, Wang Rong, Doris van Halem, Harold Mao, Lim Mong Hoo, Adil Dhalla, Zhang Hua, Hu Xiao, Li Shuzhou, Gao Xin, Ramam Akkipeddi, Lin Ming, Zhu Qiang, and Ding Guoqiang.

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16). Gerald Silver, President of Homeowners of Encino, was credited with popularizing the “toilet to tap” tag. The announcement was made just before an open mayoral contest in 2001 that included Valley secession on the ballot. Hence, the engineering triumph became clouded by political nuances. NEWater is primarily used as non-potable water by industrial and commercial customers in Singapore, for example, for cooling and wafer fabrication processes, and is located in industrial clusters to meet both supply and demand. http://www.pub.gov.sg/E-Services/NEWater/Pages/default.aspx (accessed 2/10/16). SIWW 2014 recorded S$14.5 billion in total value from deals made and attracted over 20,000 participants from 118 countries. http:// www.siww.com.sg/media/collaborations-reinforce-singapore-internationalwater-week-premier-global-platform-share-and (accessed 2/10/16). Prof. Isai T. Urasa contributed significantly to this segment. Gii WITS Presentation: Water Resource Development and Management. Prof. Garrick Louis contributed significantly to this segment. Gii WITS Presentation: Innovation for Development: The Drinking Water Challenge. White, C. Integrated water resources management: What it is and why is it used. June 10, 2013; http://www.globalwaterforum.org/2013/06/10/ integrated-water-resources-management-what-is-it-and-why-is-it-used/ (accessed 2/10/16), citing the International Conference of Water and the Environment (ICWE), The Dublin Statement on Water and Sustainable Development; 1992; http://www.wmo.int/pages/prog/hwrp/documents/ english/icwedece.html (accessed 2/10/16). Centre for Liveable Cities (Singapore) and Civil Service College (Singapore). Liveable Sustainable Cities: A Framework; 2014; http://www.clc.gov.sg/ documents/books/CLC_CSCLiveable&SustainableCities.pdf (accessed 2/10/16). The Singapore Membrane Technology Centre (SMTC), headed by Associate Professor Wang Rong at the Nanyang Technological University (NTU), was set up in 2008 to spearhead Singapore’s R&D efforts in fundamental and applied membrane science and technology. The linkages between the economic development of Singapore and water sustainability are evident in the two stakeholder partners, the Environment & Water Industry Development Council and Economic Development Board, that support SMTC. Post-2015 UNU-IAS Policy Brief #2. Linking education and water in the sustainable development goals; United Nations, 2013a; OWG, 2014; SDSN, 2014; http://sdg.earthsystemgovernance.org/sdg/publications/linkingeducation-and-water-sustainable-development-goals (accessed 2/10/16). The OpenCourseWare movement started in 1999 when the University of Tubingen in Germany published videos of its lectures online. In October 2002, MIT launched its OCW services, followed by Yale, the University of Michigan, and the University of California Berkeley. Today, MIT offers materials from 2,150 courses and enjoys 125 million visitors at its OCW website. http://ocw.mit.edu/about/ (accessed 2/10/16). 73 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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28. The MOOC phenomenon took off in 2012, dominated by three MOOC platforms: UdaCity, edX, and Coursera. MOOCs provide courses on university-level subject matter delivered by university faculty, are free and have no admissions requirements. http://www.skilledup.com/articles/ the-best-mooc-provider-a-review-of-coursera-udacity-and-edx/ (accessed 2/10/16). 29. Prof. Doris van Halem contributed significantly to this segment. Gii WITS Presentation: Bringing Water Knowledge to the Masses: Online Water Treatment Education. 30. “MOOCs are fundamentally about outreach and social mission and they’re not very expensive”, says Prof Karl Ulrich, Vice-Dean of Innovation at Wharton, in an interview with Knowledge@Wharton, Disruption ahead: What MOOCs will mean for MBA programs, July 16, 2014; http://knowledge.wharton.upenn.edu/article/moocs-mba-programsopportunities-threats/ (accessed 2/10/16). 31. Envisioning education in the Post-2015 Development Agenda: Executive Summary, page 4; http://unesdoc.unesco.org/images/0022/002230/ 223025E.pdf (accessed 2/10/16). 32. Frost & Sullivan. Environment & Water, Key 360º issues; http:// ww2.frost.com/research/industry/environment-building-technologies/ environment-water/ (accessed 2/10/16). 33. Prof Ellene Tratras Contis contributed significantly to this segment. Gii WITS Presentation: Water Treatment and Innovation: Background and Overview. 34. European Commission. Membrane technologies for water applications: Highlights from a selection of European research projects, 2010; http://ec.europa.eu/research/environment/pdf/membrane-technologies.pdf (accessed 2/10/16). 35. Prof. Wang Rong contributed significantly to this segment. Gii WITS Presentation: “Global Challenges and Solutions on Membrane & Desalination.” 36. Water Reuse Desalination Committee white paper. Seawater desalination power consumption, November 2011; https://www.watereuse.org/sites/ default/files/u8/Power_consumption_white_paper.pdf (accessed 2/10/16). 37. Herndon, A. Energy makes up half of desalination plant costs: Study, May 1, 2013; http://www.bloomberg.com/news/2013-05-01/energy-makes-up-halfof-desalination-plant-costs-study.html (accessed 2/10/16). 38. On December 12, 2012, Statkraft, Norway’s largest supplier of renewable energy closed down the world’s only pilot scale river/seawater powered PRO plant at Tofte in Norway after three years of operations because of the lack of high performing and reasonably priced PRO membranes. http://www.forwardosmosistech.com/statkraft-discontinues-investments-inpressure-retarded-osmosis/ (accessed 2/10/16). 39. Atasi, K. Z. Membrane technology advances wastewater treatment and water reuse; http://cdmsmith.com/en/Insights/Viewpoints/MembraneTechnology-Advances-Wastewater-Treatment-and-Water-Reuse.aspx (accessed 2/10/16). 74 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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40. Prof. Ong Choon Nam contributed significantly to this segment. Gii WITS Presentation: Connecting Water, Chemistry and Material Science. 41. Surviving saline environments the saline way, August 22, 2013; http://www.nus.edu.sg/neri/mangrove.html (accessed 2/10/16). 42. New York State Great Lakes Water Supplies, How many Public Drinking Water Systems draw water from Lake Erie? http://www.dec.ny.gov/docs/ water_pdf/bga20140808.pdf (accessed 2/10/16). 43. Plumer, B. A toxic algae scare has left 500,000 people in Ohio without drinking water, August 3, 2014; http://www.vox.com/2014/8/3/5963645/ a-toxic-algae-bloom-has-left-400000-people-in-ohio-without-drinking (accessed 2/10/16). 44. Australian government: Department of Sustainability, Environment, Water, Population and Communities. Blue-green algae (cyanobacteria) and water quality, November 2012, http://www.environment.gov.au/system/files/ resources/5a8c0861-1d4c-424a-9bcd-ae9c4304fb5e/files/blue-green-algaecyanobacteria-and-water-quality-fs.pdf (accessed 2/10/16). 45. Prof. Ong Choon Nam contributed significantly to the discussion in this segment. 46. New Smart Water Assessment Network (NUSwan); http://www.nus.edu.sg/ neri/nuswan.html (accessed 2/10/16) 47. Liu, L.; Zhao, H.; Andino, J. M.; Li, Y. ACS Catal. 2012, 2, 1817–1828. 48. Zhao, H.; Liu, L.; Andino, J. M.; Li, Y. J. Mater. Chem. A 2013, 1, 8209–8216. 49. Rodriguez, M. M.; Peng, X.; Liu, L.; Li, Y.; Andino, J. M. J. Phys Chem. C 2012, 116, 19755–19764. 50. Zhang, Q. Y.; Gao, T. T.; Andino, J. M.; Li, Y. Appl. Catal., B 2012, 123, 257–264. 51. Andino, J.; Gao, T. U.S. Patent Application 14/076,764. Published May 15, 2014. 52. Jordan, R. Science Daily. Key component of China’s pollution problem: Scale of nitrogen’s effect on people and ecosystems revealed, February 26, 2013 (source: Stanford University), http://www.sciencedaily.com/releases/ 2013/02/130226092136.htm (accessed 2/10/16). 53. Science Daily. How much fertilizer is too much for the climate? June 9, 2014 (source: Michigan State University), http://www.sciencedaily.com/releases/ 2014/06/140609153518.htm (accessed 2/10/16). 54. UN FAO, 2012, cited by IEA. Water for energy: Is energy becoming a thirstier resource? http://www.worldenergyoutlook.org/media/weowebsite/ 2012/WEO_2012_Water_Excerpt.pdf (accessed 3/23/16). 55. European Commission. Water scarcity and drought in the European Union, August 2010; http://ec.europa.eu/environment/pubs/pdf/factsheets/ water_scarcity/en.pdf (accessed 2/10/16). 56. Roberts, A. G. Predicting the future of global water stress; MIT Joint Program on the Science and Policy of Global Change, January 9, 2014; http://newsoffice.mit.edu/2014/predicting-the-future-of-global-water-stress 57. http://www.lwec.org.uk/sites/default/files/Taking%20Responsibility%20for %20Water%20Full%20doc.pdf (accessed 2/10/16). 75 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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58. In a personal interview, when asked about the factors that contributed to Singapore’s success in turning water from a vulnerability to a strength, the late Prime Minister Lee Kuan Yew said, “it was critical circumstances, determination to succeed, comprehensive planning and the technology….The same process can be repeated by any country. But you must have the determination, the discipline, the administrative capability and its implementation. And you keep on looking for new technology. Cited by Cecilia Tortajada, Water diplomacy: The Singapore Water Story: A journey towards self-sufficiency and sustainable development; http://blog.waterdiplomacy.org/2013/04/singapore-water-story/ (accessed 3/23/16). 59. The Orbital Perspective. http://orbitalperspective.com (accessed 2/10/16). 60. In May 2015, it was announced that Anders Nilsson, Professor of Chemical Physics at Stockholm University, had been awarded a grant of 2.5 million Euros from the European Research Council for a five-year project on “Probing the structure and dynamics of water in its various states”.http://www.su.se/english/about/profile-areas/atomic-and-chemicalphysics/large-research-grant-to-explain-the-water-mystery-1.236327 (accessed 2/10/16).

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Chapter 9

Bibliography on International Education and Exchange Publication Date (Web): August 17, 2016 | doi: 10.1021/bk-2016-1219.ch009

Bradley D. Miller* Office of International Activities, American Chemical Society, 1155 Sixteenth Street, N.W., Washington, DC 20036, United States *E-mail: [email protected].

As the world is increasingly globalized, it is important for future chemists, chemical engineers and chemistry educators to have some degrees of international awareness and competency. These may include knowledge of other cultures, customs, and languages, familiarity with global issues, and effective working relationship with people from diverse backgrounds. Study abroad, research experience programs in foreign countries, and overseas work assignments are excellent ways to acquire international competencies, and it seems that U.S. employers areciate job candidates with such backgrounds. To help ACS members and students with global awareness and competencies, this author has compiled a bibliography of key articles relating to international education and exchange. As shown by the information provided in the ACS International Center, there are a lot of oortunities overseas for students and working scientists to carry out transnational collaborations or to spend time abroad.

The term, international education, can mean two things. The first refers to international education exchange, e.g., students traveling overseas to study or scholars doing short-term research projects in different countries. The second meaning refers to an aroach to education that prepares students to be ready and effective in an interconnected world. Both definitions are relevant to © 2016 American Chemical Society Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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chemistry, and the ACS is working hard to help its members work effectively and knowledgeably within a competitive global workforce and economy and develop networks for their enduring professional success. With the rise of the internet and ease of communication across national boundaries, globalization is occurring at a rate faster than ever before. Employers are increasingly recognizing international experience as added value in job candidates. Many people believe that studying abroad, learning a foreign language, and learning about other cultures is essential to the education experience. Indeed in a global marketplace, spending time abroad and studying in another culture can lead to personal satisfaction and professional success. The author has been involved with international education and exchange for many years. He has compiled a bibliography of key articles relating to international education and exchange for the benefit of chemistry students and working scientists interested in broadening their educational experiences. Some key conclusions are:

1.

2. 3. 4.

5. 6.

The U.S. needs scientists and engineers with working global knowledge and skill sets in universities, companies and research labs in order to be successful in a globally competitive research, development and innovation environment. In view of foreseeable demographic shift, the chemistry enterprise needs a more diverse workforce. We need to entice talented students to select chemistry as a globalized discipline for a career. We need to revamp the current college curriculum in order to better prepare our students for future jobs in the U.S. and worldwide. Particularly valuable is a workforce of chemical scientists, engineers, and teachers who are capable of working with and across different cultures to tackle global societal challenges. It may be desirable for chemistry students, researchers and professionals to spend some part of the year in a foreign country. The ACS International Center is a valuable resource for students and working scientists and engineers to explore options in international education and exchange. The website is www.acs.org/ic.

Bibliography 1. 2. 3.

Adler, N. J.; Gundersen, A. International dimensions of organizational behavior (5th ed.). Thomson South-Western: Mason, OH, 2008. American Council on Education Educating for Global Competence. America’s Passport to the Future, 1998. Arp, F. For success in a cross-cultural environment, choose foreign executives wisely. Global Business and Organizational Excellence. 2012; 32, 40−50. 78 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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19. Carpenter, M. A.; Fredrickson, J. W. Top management teams, global strategic posture, and the moderating role of uncertainty. Academy of Management Journal. 2001; 44, 533−545. 20. Crabtree, B. F., & Miller, W. L. (1999). Doing qualitative research (2nd ed.). Thousand Oaks, Calif.: Sage Publications. 21. Crossman, J. E.; Clarke, M. International experience and graduate employability: Stakeholder perceptions on the connection. Higher Education. 2010; 59, 599–613. 22. Daily, C. M., Certo, S. T.; Dalton, D. R. International experience in the executive suite: The path to prosperity? Strategic Management Journal. 2000; 21, 515−523. 23. Department for Business, Innovation and Skills The value of transnational education to the UK. Careers Research and Advisory Centre, 2014. 24. Doherty, N., Richardson, J.; Thorn, K. Self-initiated expatriation and self-initiated expatriates: Clarification of the research stream. Career Development International. 2013; 18, 97−112. 25. Dowling, P., Festing, M.; Engle, A. D. International human resource management: Managing people in a multinational context. Cengage Learning, 2008. 26. Busch, D. What kind of intercultural competence will contribute to students’ future job employability? Intercultural Education. 2009; 20, 429–38. 27. Fraser, D. R., Zhang, H.; Derashid, C. Capital structure and political patronage: The case of Malaysia. Journal of Banking & Finance. 2006; 30, 1291−1308. 28. Froese, F. J. Motivation and adjustment of self-initiated expatriates: The case of expatriate academics in South Korea. International Journal of Human Resource Management. 2012; 23, 1095−1112. 29. Gamble, N., Patrick, C.; Peach, D. Internationalising work-integrated learning: Creating global citizens to meet the economic crisis and the skills shortage. Higher Education Research and Development. 2010; 29, 535–46. 30. Hall, D. T. Protean careers of the 21st century. The Academy of Management Executive. 1996; 10, 8−16. 31. Harvey, M., Novicevic, M.; Speier, C. The role of inpatriates in a globalization strategy and challenges associated with the inpatriation process. Human Resource Planning. 1999; 22, 38−50. 32. Harzing, A.W. Of bears, bumble-bees, and spiders: The role of expatriates in controlling foreign subsidiaries. Journal of World Business. 2001; 36, 366−379. 33. Harzing, A.W.; Ruysseveldt, J.V. International human resource management (2nd ed.). Sage Publications: London, 2004. 34. Hoare, L. Transnational student voices: Reflections on a second chance. Journal of Studies in International Education. 2012; 16, 271–86.

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35. Inkson, K., Arthur, M. B., Pringle, J.; Barry, S. Expatriate assignment versus overseas experience: Contrasting models of international human resource development. Journal of World Business. 1997; 32, 351−368. 36. Inkson, K.; Myers, B. A. "The big OE": Self-directed travel and career development. Career Development International. 2003; 8, 170−181. 37. Jones, E. Internationalization and employability: The role of intercultural experiences in the development of transferable skills. Public Money and Management. 2013; 33, 95–104. 38. Kedia, B. L.; Mukherji, A. Global managers: Developing a mindset for global competitiveness. Journal of World Business. 1999; 34, 230−251. 39. Lee, C. H. A study of underemployment among self-initiated expatriates. Journal of World Business, 2005; 40, 172−187. 40. Levy, O.; Beechler, S.; Taylor, S.; Boyacigiller, N. A. What we talk about when we talk about ‘global mindset’: Managerial cognition in multinational corporations. Journal of International Business Studies. 2007; 38, 231−258. 41. Mendenhall, M. E.; Oddou, G. The overseas assignment: A practical look. Business Horizons. 1988; 31, 78. 42. Minichiello, V.; Aroni, R.; Hays, T. N. In-depth interviewing: Principles, techniques, analysis (3rd ed.). Pearson Education Australia: Sydney, 2008. 43. Mobley, W. H.; Weldon, E. Advances in global leadership. Elsevier: Oxford, 2006. 44. Myers, B.; Pringle, J. K. Self-initiated foreign experience as accelerated development: Influences of gender. Journal of World Business. 2005; 40, 421−431. 45. Nachum, L. What constitutes the liablity of foreignness? Paper presented at the Academy of Management Proceedings. Atlanta, Georgia, August, 2006. 46. Nowland, J. Are East Asian companies benefiting from Western board practices? Journal of Business Ethics. 2008; 79, 133−150. 47. Nummela, N., Saarenketo, S.; Puumalainen, K. A global mindset: A prerequisite for successful internationalization? Canadian Journal of Administrative Sciences. 2004; 21, 51−64. 48. Palmer, T. M.;Varner, I. I. A comparison of the international diversity on top management teams of multinational firms based in the United States, Europe, and Asia: Status and implications. Singapore Management Review. 2007; 29, 1−30. 49. Peltokorpi, V.; Froese, F. J. Organizational expatriates and self-initiated expatriates: Who adjusts better to work and life in Japan? International Journal of Human Resource Management. 2009; 20, 1096−1112. 50. Perlmutter, H. V. The tortuous evolution of the multinational corporation. Columbia Journal of World Business. 1969; 4, 9−19. 51. Pudelko, M.; Harzing, A.W. Country-of-origin, localization, or dominance effect? An empirical investigation of HRM practices in foreign subsidiaries. Human Resource Management. 2007; 46, 535−559. 81 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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52. Richardson, J.; Mallon, M. Career interrupted? The case of the selfdirected expatriate. Journal of World Business. 2005; 40, 409−420. 53. Searle, W.; Ward, C. The prediction of psychological and sociocultural adjustment during crosscultural transitions. International Journal of Intercultural Relations. 1990; 14, 449−464. 54. Selmer, J.; Lauring, J. Self-initiated academic expatriates: Inherent demographics and reasons to expatriate. European Management Review. 2010; 7, 169−179. 55. Selmer, J.; Lauring, J. Marital status and work outcomes of self-initiated expatriates: Is there a moderating effect of gender? Cross Cultural Management. 2011; 18, 198−213. 56. Selmer, J.; Lauring, J. Reasons to expatriate and work outcomes of selfinitiated expatriates. Personnel Review. 2012; 41, 665−684. 57. Shapiro, J. M., Ozanne, J. L.; Saatcioglu, B. An interpretive examination of the development of cultural sensitivity in international business. Journal of International Business Studies. 2008; 39, 71−87. 58. Stahl, G. K.; Chua, C. H.; Caligiuri, P.; Cerdin, J.L.; Taniguchi, M. Predictors of turnover intentions in learning-driven and demand-driven international assignments: The role of repatriation concerns, satisfaction with company support and perceived career advancement opportunities. Human Resource Management. 2009; 48, 89−109. 59. Stahl, G. K.; Miller, E. L.; Tung, R. L. Toward the boundaryless career: A closer look at the expatriate career concept and the perceived implications of an international assignment. Journal of World Business. 2002; 37, 216−227. 60. Staples, C. L. Board globalisation in the world’s largest TNCs 1993−2005. Corporate Governance: An International Review. 2007; 15, 311−321. 61. Staples, C. L. Cross-border acquisitions and board globalization in the world’s largest TNCs, 1995−2005. Sociological Quarterly. 2008; 49, 31−51. 62. Sullivan, D. Measuring the degree of internationalization of a firm. Journal of International Business Studies. 1994; 25, 325−342. 63. Suutari, V.; Brewster, C. Making their own way: International experience through self-initiated foreign assignments. Journal of World Business. 2000; 35(4), 417−436. 64. The Korn/Ferry Institute. Lessons from the Asian C-suite: Building global talent and a culture for success. 2009. http:// www.kornferryinstitute.com/about_us/thought_leadership_library/ publication/1494/Lessons_from_the_Asian_C_Suite 65. Vance, C. M. The personal quest for building global competence: A taxonomy of self-initiating career path strategies for gaining business experience abroad. Journal of World Business. 2005; 40, 374−385. 66. Ward, C. Acculturation. In D. Landis & R. Bhagat (Eds.), Handbook of intercultural training. Sage Publications: Thousand Oaks, CA, 1996. 67. Ward, C.; Kennedy, A. The measurement of sociocultural adaptation. International Journal of Intercultural Relations. 1999; 23, 659−677. 82 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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68. Weerawardena, J.; Mort, G. S.; Liesch, P. W.; Knight, G. Conceptualizing accelerated internationalization in the born global firm: A dynamic capabilities perspective. Journal of World Business. 2007; 42, 294−306. 69. Wiers-Jenssen, J. Background and employability of mobile vs. non-mobile students. Tertiary Education and Management. 2011; 17, 79–100. 70. Zaheer, S. The liability of foreignness, redux: A commentary. Journal of International Management. 2002; 8, 351−358.

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Chapter 10

Lessons in Translating University Research to the Marketplace Publication Date (Web): August 17, 2016 | doi: 10.1021/bk-2016-1219.ch010

Joseph M. DeSimone* Department of Chemistry and Institute for Nanomedicine, Lineberger Comprehensive Cancer Center, University of North Carolina at Chapel Hill, Chapel Hill, North Carolina 27599-3290, United States *E-mail: [email protected].

From licensing patents to existing companies, to creating entirely new companies, multiple routes exist to enable the translation of academic research to the market. This article will explore lessons learned from experiences with different approaches, also examining keys to entrepreneurial success involving financing, partnerships, the importance of diversity in driving team innovation, and advantages of operating in a convergence framework for shaping success in a global marketplace.

Introduction Academics are in a privileged position to conduct research on topics of their choosing with students. There are lots of opportunities for innovation in their research. Academics are sometimes able to start companies based on their research and innovations. Henry Rosovsky (1) describes research experience in this way: “Research is an expression of faith in the possibility of progress. The drive that leads scholars to study a topic has to include the belief that new things can be discovered, that newer can be better, and that a greater depth of understanding is achievable. Research, especially academic research, is a form of optimism about the human condition.”

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Clay Christensen’s Innovator’s Dilemma When considering innovations and the economy, Clay Christensen (2) lays out three types of innovations: disruptive, sustaining, and efficiency. Disruptive innovations transform complex and expensive things to make them affordable and accessible. Disruptive innovations often require the innovator to take a long view and emanate from different perspectives, sometimes in academia. If successful, they can create millions of new jobs with a 5-10 year return. Sustaining innovations replace old products with newer models. The newer models are better products, but do not create new jobs necessarily. Sustaining innovations, as their name implies, are essential for sustaining industries, but not necessarily grow them with regard to jobs. Efficiency innovations are focused on streamlining and cost-cutting, often through automation and improved manpower utilization or productivity. Efficiency innovations provide a good return on investment in 12-18 months. However, they often lead to a reduction in jobs. It is important to consider all of these innovations with respect to the economy. It seems that this type of innovations may be most important for significant economic growth for the long term.

Convergence as a Strategy To Drive Innovation One great way to spark innovation is to work at the convergence of different fields (3). Bringing together different fields of study through collaboration integrates different approaches that may be originally viewed as distinct -- not just among life sciences, physical sciences, and engineering, but among (and with) the social sciences, humanities, and performing arts as well. The National Academies, in particular, has been working with this idea of convergence as a means to drive innovation. Convergence can be considered a major blueprint for innovation. Steve Jobs is an iconic figure who advocates the convergence of technology and liberal arts, using it to drive Apple’s innovation. Examples of the people Apple has hired include the former CTO at Adobe, a fitness expert from Nike FuelBand, a scientist working on non-pharm methods of improving the quality of sleep, a former CEO of Yves Saint Laurent, a former CEO of Burberry, a designer from Nike’s “Innovation Kitchen” FlyKnit & FuelBand, a director of engineering at C8 MediSensor, a VP of hardware engineering, a former CMOs, and experts in biosensors. Closely related to this idea of convergence is the dictum: “We learn the most from those we have the least in common with (3).” The “most innovative solutions often arise from diverse teams composed of talented individuals with different areas of expertise, backgrounds, and life experiences (3).” People who grew up with a lot of money think about solving problems differently than those who grew up with very little money, and it is important to have all those perspectives together. “Without being intentional about human diversity, we risk detracting from the opportunity that exists to achieve innovation and societal impact [. . .]”. 88 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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A book driving a lot of people’s thinking today is Zero to One: Notes on Startups, or how to build the Future by Peter Thiel (4). The underlying premise of the book is “What important truth do very few people agree with you on?” This is an important comment regarding breakthrough ideas. It considers what a 0 to 1 idea is versus a 1 to n ideas. That is to a say, a seminal idea as opposed to an incremental one. If you are in academia and you are writing grants and proposals, and you have an idea that very few people agree with you on, it is a very difficult process to implement and study that idea, because of the peer review process. When thinking about the types of things that lead to a big innovation, or the 0 to 1 idea, the peer review process might be criticized in this regard. In the private sector, however, you have access to venture capital which can easily fund the 0 to 1 idea. The whole premise of this is to convince people of a plan to build a different future, as opposed to sustaining one’s disciplinary focus. In other words, we need to think about doing things differently. In the chemical community, there is a lot to be learned from other disciplines, industries, and startup companies. In his article, Bill Gurley (5) outlines the advantages of convergence. These include sustainable competitive advantages, the presence of “network effects” (the idea that a community can learn from itself and get stronger the bigger it gets, e.g., Google), having predictable and visible revenue, sticky products where customers are locked in, gross margin levels, profitability, a highly fragmented customer base, the lack of a major partner dependency, and organic demand for products versus heavy marketing expenditures, and, lastly, growth. This is what the big venture capital firms are focused on, and they are interested in chemists who can implement or achieve these goals in the chemical industry. Some key observations about successful innovators are: 1) often the best design teams are the most diverse in team membership, 2) mentorships and apprenticeships are essential, 3) the strategy is all about being different, 4) the most fertile ground for innovation lies between fields, and 5) partnerships with domain experts are critical. This author has personally worked in and started a number of companies at the crossroads of various disciplines and has created innovative products with applications across different industries. Some of these include a nanotech/bio company called Liquidia Technologies; and a new battery company developing non-flammable lithium ion batteries called Blue Current. He co-founded the company Bioabsorbable Vascular Solutions (BVS), and Abbott currently owns and makets the technology BVS was founded on. He has also worked on a new approach to 3D printing with Carbon3D.

Benefits of Academic Entrepreneurship The intersection between academia and entrepreneurship is an important one. It provides an opportunity to improve the health and well-being of the society. There is an economic development aspect that is also important. For an academic scientist, entrepreneurship provides a number of different benefits. It provides a compass to help navigate where the important problems 89 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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are. The peer review process in entrepreneurship is also more intensive. When someone is betting real dollars on your idea, the level of peer review is substantial. Venture firms bring together some of the best in the industry to peer review innovations. This intense peer-review, in turn, really improves the science and research being conducted. The additional resources that an academic entrepreneur has access to make an impact. It also improves the academic’s “grantsmanship” and his ability to succinctly talk about his work. Academic entrepreneurs are forced to be effective in their communication in order to discuss the benefits of their work. There is a huge opportunity for scaling up development. Venture capital firms are typically able to invest much greater amounts of capital into a product or idea than academia is able to. Along these same lines, academic entrepreneurship creates companies that are effective in translational research. Academic entrepreneurship also validates science by amplifying the rate at which things are reproducible by others. Academic entrepreneurship also creates an apprenticeship environment, which can help create the next generation of entrepreneurs.

References 1. 2. 3. 4. 5.

Rosovsky, H. The University: An Owner’s Manual; W. W. Norton & Company: New York, 1991; p 89. Christensen, C. M. The Innovator’s Dilemma: When New Technologies Cause Great Firms to Fail; Harvard University Press: Boston, MA, 1997. DeSimone, J. M.; Farrell, C. L. Driving Convergence with Human Diversity. Sci. Transl. Med. 2014, 6, 238ed11 DOI:10.1126/scitranslmed.3004486. Thiel, P.; Masters, B. Zero to One: Notes on Startups or How to Build the Future; Crown Business: New York, 2014. Gurley, B. All Revenue is Not Created Equal: The Keys to 10x Revenue Club; http://abovethecrowd.com, May 24, 2011 (accessed August 1, 2015).

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Chapter 11

A Brief Guide for the Chemistry Entrepreneur Alexander Sachse1 and Javier Garcia Martinez*,1,2 Publication Date (Web): August 17, 2016 | doi: 10.1021/bk-2016-1219.ch011

1Department

of Inorganic Chemistry, Universidad de Alicante, 03690 Sant Vicent del Raspeig, Alicante, Spain 2Rive Technology Inc., 1 Deer Park Drive, Suite A, Monmouth Junction, New Jersey 08852, United States *E-mail: [email protected].

“When starting a company, you can study and get prepared, but oftentimes, this will be of little help. If you do not live it, you will not learn it”. This is generally the answer that we get when asking an entrepreneur the question: what does it take to bring an invention to the market? Yet, there exist many valuable tools designed to support successful business creation around an idea and to identify its key steps. The first, and one of the most important things we need to bear in mind when aiming at creating a company, is the capacity of self-assessment, i.e. the ability to know and to evaluate oneself. It is indeed crucial to be aware of one’s skills, strengths and expertise, as well as, to own a precise idea of our envisaged business and its implementation. Whilst, appropriate work experience and some basic knowledge concerning market and industry are fundamental, we should not be afraid to venture out into the unknown. Essential business skills can be learned with the appropriate diligence. Yet, launching and growing a new business is a very demanding task and we should be fully convinced before deciding to dedicate the next years of our life to becoming an entrepreneur. It is crucial to have a good business idea, which should identify a key niche and satisfy an unmet target need. There should be no ambiguity whether our idea presents the requirements to becoming a real market opportunity. We should hence be in the position to define a given target market. Equally,

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it is fundamental to identify potential competitors and to assure by intellectual property (IP) the protection of our business idea. Once these initial issues are clear, the next step consists in building the business plan. This is an extremely useful tool as it permits to bundle ideas while generating an efficient business strategy leading to success. The business plan allows determining the course of action, assessment of responsibilities and laying out the company’s milestones. The business plan is meant to be versatile, including new developments we learn over time. It is yet crucial to analyse our idea, concrete our plans and organize tasks and priorities. Finally and most importantly, we need to determine the financial structure of our company. This means we need to identify cost and revenue stream. Those who are interested in starting a business will find here the most essential steps for realizing an invention to become a business idea from its beginnings to the realization of a successful company. Further we will depict Rive Technology as case study to successful business creation.

The Birth of the Business Idea: The Eureka Moment One of the best things of being a chemist is the feeling of joy inherent to the solving a major problem through hard work. This is the sensation we have when we achieve something new for the first time, such as the synthesis of a new molecule or the resolution of a complex structure; the well-known Eureka moment. Yet, an even better and by far more fascinating adventure is to bring the invention to the market. Along this intriguing yet exhausting journey many new concepts have to be learned and applied, such as cost structure, revenue stream, intellectual property, value proposition; concepts to which chemists are oftentimes not very familiar with. Many constraints arise throughout this challenge and we need to be prepared in order to circumvent major inconveniences that could hinder and infringe successful commercialization of our technology.

From Academia to Industry and Back: The Need for Chemistry Entrepreneurs There is an important amount of excellent research developed at universities and research centers. At the same time, there exist huge market needs that seek for efficient solutions. The missing links between these two worlds are entrepreneurs ready to live up to take on the challenge to bring their invention to the marketplace in order to that society can benefit from it. In order to efficiently bridging the gap between industry and academia entrepreneurs must combine a complementary set of attributes, such as deep scientific knowledge and commercial instinct, rigor and sense of urgency, 92 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

curiosity and capacity to deliver. It is those, who disclose ways to commercialize ideas from academia by creating spin-offs. This challenge-solution approach needs to go hand in hand as graphically summarized in Figure 1.

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Figure 1. Challenge-solution approach: from academia to industry.

Key Factors for a Successful Business Idea As chemists, we import numerous skills that can be used at excellent effect when commercializing our technology. Our critical thinking and evidence-based training are very valuable skills, yet we should keep in mind that bringing a technology to the market is not a research project. It is worth emphasizing that proposing a single product is not enough for creating a company, as competitors can easily propose an alternative solution. This is a typical mistake for academic entrepreneurs. Ideally our company should be based on a technology platform that permits us to realize various products that meet a need that market has yet not done. This prerequisite furthermore supports us to be versatile and to adapt to rapid market changes. Competition is vigorous and it is not because we produce the best product that competitors will not put something on the market that works even better at a keener price. It is essential to sediment in our minds that it is the clients that determine our business strategy. A vision is hence crucial to have a greater picture beyond a single product or even a whole technology platform.

To have an idea is definitely the first step in any entrepreneurs’ life. Yet, we should bear in mind that it is how we implement this idea that really matters. The market opportunity is a key aspect that needs to be considered. Thus, the first test that our idea should pass is its ability to produce enough revenue to support our company. We should fully be in the position of answering the question: how are 93 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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we going to create revenue and what is the cost structure of our company? The size and strength of our business depends on the price we can sell our product at and to how many purchasers and on the cost of keeping the business running. Having an idea and knowing the market are essential attributes that need to be assessed before of any realistic consideration of company realization. Yet, the process of building up the company is tricky, as many unforeseeable trap doors exist. A typical mistake many academic entrepreneurs slip up with is to believe that they are self-sufficient. It is thus important to recognize our limitations and to share duties by forming a very strong team. This can go as far as hiring a CEO who himself has nothing to do with the conception of our initial idea, but who is able to lead the team to success. The financial needs of a company develop in function of its evolution. In the same way should the funding sources adapt. Every entrepreneur should be conscious of the needs and opportunities of its venture and deliver a strong plan. All of these aspects will be considered within detail in the following sections and a comprehensive overview on essential concepts will be presented as fundamental key requirements.

Reasons Why Many Companies Fail A number of companies fail in their infancy mainly due to avoidable mistakes. Many researchers have an idealized idea of the commercialization of their technology or product and are not aware of the wind that blows out in the business world. A typical mistake of entrepreneurs coming from academia is creating a company out of love for the technology or for the mere desire of advancing technology. Launching a company is not a research project. Moved by the increasing pressure to support research and the ever-growing difficulties to achieve funding, we could be tented to launch a company to support our research. Yet by no means should we try to fund a research project through investors. We must be aware that investors expect to be paid back several times the amount of money they have invested; hence, we should be convinced that our technology has the capacity to generate revenue to be self-sufficient and to pay back our investors.

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Another typical pitfall is the idea that launching a company could be beneficial to improve our CV. Starting a company represents years of hard work and intense dedication in which we will hardly publish scientific papers. If our goal is to boost our academic CV then we should focus on our research and try to publish high quality papers. Becoming an independent researcher is indeed very difficult nowadays and many young scientists fell frustrated of being unable of attaining a fixed position within academia. In this respect, creating a company represents an attractive alternative. Indeed founding a company is a very gratifying experience and allows us to realize many of our aspirations allowing us at the same time to take our own decisions. Yet, being the founder of a company rarely feels like being “the boss” but rather part of a team with a common goal.

How To Assess if Our Business Idea Is Promising for Setting up a Company? Researchers oftentimes have the doubt whether an idea has what it takes to be converted into a successful business. The first question we need to be able to answer is: is there a demand for our product? In other words, are customers willing to pay for it and to what price? To answer these questions we need to identify a target market and more importantly our customers. Then we should be sure to understand if our technology is unique and free of any legal implications. The best way to answering this question is actually to talk to potential customers. This is what the Customer Development Strategy, conceived by Steve Blank suggests and which will be developed in the next sections.

Business Plan: On the Way To Creating Our Business The concept of the business plan has evolved greatly during the past years. Previously, a business plan was meant to be a highly developed and lengthy document to which the company had to adhere rigorously and that would not be altered after its approval. This rigorous conception of the business plan does not allow for the flexibility needed to adapt as we move forward. Indeed, nowadays the notion of the business plan has radically changed. A successful business plan is meant to serve to clarify and crystalize our idea, define our long term objectives and provide a blueprint for the financing of our business. The business plan must include a valid business concept, disclose markets and competitors, define sales and marketing strategy, draft the management team and the financial requirements and finally assess possible risk our company runs to fail. Herein, we will use the model proposed by Steve Blank known as the Lean LaunchPad (Figure 2) (1). This Pad consists out of nine distinct elements that determine the development of the business plan and are summarized in Box 1. 95 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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The Lean LaunchPad further insists in the idea of “pivoting” as we advance in the development of our company and merely implies to create hypothesis, which need to be verified with our clients or potential clients. It is essential to realize customer needs and to validate the invention with our customers. By doing so, we are able to easily and rapidly redefine our original idea and to adapt it to the real needs of our potential customers. This is a fundamental as it is the clients who drive the success of our business.

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Figure 2. Lean LaunchPad developed by Steve Blank.

Communication: An Indispensable Key Skill of the Chemistry Entrepreneur Communication is a key skill to attract investors, create new customers and close successful deals. Communication further enables us to inquire about market needs and to identify those how are willing to purchase our product. Thus, continuous communication with customers to refine our value proposition is of upmost importance. A great variety of tutorials exist that expose the principles of efficient communication. We here merely aim at emphasizing some of the most important aspects of business-minded communication. It is always smart to keep in mind to the nature of the audience we are referring. Therefore, we need to determine and to adapt our speech. It is not equal exposing our idea to a research colleague or to an investor. Conveying our vision with clarity and passion is of extreme importance, yet we should be able to distil the essence of the innovative aspects our technology we aim at commercializing presents. We should bear in mind that potential customers and investors get many similar proposals and therefore we must be convincing, clear and honest throughout our presentation. When being at the situation of talking face to face with potential customers or investors we should consider that eye contact and body language are of upmost importance as we do not merely communicate through oral language. A reposed yet dynamic attitude is important to make an impact. Finally we should be prepared and we should know exactly at all times what we are talking about. The loss of confidence represents a major risk when planning at creating a business. The best advice here is practice and practice until reaching perfection. 97 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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Identifying the Market: Who Are Our Customers and How To Approach Them? A chemical company can produce a great variety of products, services and technologies. Despite the nature of our offering, we need to identify who our real customers are. The best way of identifying potential customers is to focus to customer groups, which can generally be disclosed by market survey. Once we establish a group of potential customers we should determine their opinion on the product we aim at offering. A key question to address is: is our product a valid alternative the potential consumer would buy? And if yes, under which conditions? It is further important to keep in mind that generally the first contact with a potential customer is just a step towards making a deal. The first contact will hardly lead to an appointment for presenting our technology. When invited by a potential customer, we should precisely listen to what he has to say in order to realize his real needs. We should pay particular attention to outer constraints that could give us an insight to the customers’ business and its reality in order to adapt our business strategy. A further good approach is to ask customers in how our product or technology can help them maintain and grow their business. A good strategy to understand customers’ decisions is to ask for feedback. This allows us to learn and improve the way we approach and negotiate with consumers. This approach further helps us to realize limitations our product may feature.

Figure 3. Summarizing the refinement strategy for our business model and value proposition. 98 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

Figure 3 summarizes the major key aspects dealt up to know. The most important tool of all of the resources we need for designing our company is the refinement strategy. In communication the refinement strategy is characterized for asking feedback. When it comes to the business model and to the value proposition refinement is similarly conceived, i.e. through testing and learning from the test results what to change in our initial plan or proposition.

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How Do We Disclose Our Rivals? Before creating our company we should be in the position to know who our competitors are and how to succeed in an increasingly complex and competitive environment. Two strategies exist that help us at determining our potential competitors. The first and most obvious way is to search for companies producing similar products we aim at commercializing or companies that have very similar expertise as we have. The second strategy is to disguise competitors by their customers. These approaches together will provide us with a wide view of existing competitors and to realize the threat they present for our company. If our idea is to bring a new catalyst for a given reaction on the market than we should understand which commercial alternatives to our catalyst exists. Competitors may have being producing a similar technology for years. One alternative is to partner with one or more of the major producers and sellers in the field of our technology with the aim of accelerating our time to market and reduce competition. In the chemical sector the need to produce large scale is frequent, and therefore partnerships are smart ways to enter into a competitive environment. Later on we will develop this idea through the partnership between Rive Technology and Grace that allowed for the fast and successful commercialization of mesoporous zeolites for oil refinery.

Patents: A Useful Tool to Chemistry Entrepreneurs A patent is an extremely useful tool and often essential if we aim at building a business around an invention. A patent is a legal document that prevents others from possessing, using, selling, manufacturing and importing the patent invention or offering it to do any of these means within a defined geographical area. In order to protect our invention we need to make a patent application. A patent may be granted if our invention respects the so-called patentability criteria’s. These define that a patent is to be granted for any invention that presents sufficient novelty (i.e. beyond the state-of-the-art) and industrial applicability. Patents may be granted for any invention concerned with the functional and technical aspects of products and processes, i.e. product patents and process patents. Yet, it is important to be conscious that we are not allowed to apply a process-patent to a given product if the product is covered through intellectual property by a third party. 99 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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The geographical extension of our patent extends to the national borders of the countries in which protection has been claimed. Intellectual Property for a given invention can be sought at national patent offices or by solicitation an international patent through a so-called PCT (patent cooperation treaty) application. It is important to bear in mind that though the patent application may be international an international patent does not exist. After granting we will end up with a bundle of national patents. It is furthermore important to be aware that patents have an important cost that varies in function of the geographical area for which protection is sought and duration of the patent. Indeed patent maintenance costs throughout the life of a granted patent can be very important. Once the patent expires (the maximal possible duration of a patent is limited to 20 years) anyone can use our technology and produce liberally our product to offer it on the market. It is important to be ahead of our competitors and keep innovating to maintain a healthy production of patents. This highlights the importance of creating the company around a technology platform instead as on a single product. We should fully size the importance of intellectual property and make ourselves very familiar with its fundamentals. It is therefore of upmost importance to develop a solid and efficient patent strategy and to review it as the company grows. Some tips to this are given in Box 2.

Life Cycle of the Entrepreneurship Project Figure 4 represents a typical life cycle of a company. The first years of a chemical company are typically devoted to development and production, which represents a major investment, before any sales take place. Revenues hence take some time to ingress. This situation generates a negative cash flow. Hence, this stage is frequently referred as the Valley of Death. It is the depth and length of this valley that decides on the survival of our company. Indeed many companies do not manage to overcome this crucial stage. Eventually, sales increase by finding new customers willing to pay for our product. During this stage our company starts to take off, yet cash flow is still negative and it is important to develop an efficient growth strategy. Once sales exceed costs a positive cash flow is registered, which means the company is generating a surplus. This stage is designed as the maturity phase of our company. 100 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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Yet, our venture is not protected from decline, which is the case when income drops to or below the level of costs. Independent of the stage in which our company stands we need to be fully aware of its cost structure and revenue stream. Further we need to be certain to generate sufficient profits to innovate, support research and development and be prepared to face eventual market changes.

Figure 4. Example of the life cycle of a chemical company. 101 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

Especially in the chemical sector the costs related to development and production correspond to an enormous cost effort, which means that the duration of the Valley of Death is particularly extended. Funding is essential throughout this period to assure that we can get to the break-even point with enough resources. Therefore, efficient fundraising is required to survive this stage and must then adapt to the growth phase of the company.

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Fundraising: Get the Money We Need For Getting Started During the first stages of our company we need to survive without registering any positive cash flow. This can only be achieved through efficient fundraising, as represented in Figure 5. Through the achieving of essential milestones the risk to fail decreases. A milestone is represented by a major achievement that can be registered. In the chemical sector the first milestone is oftentimes constituted by the granting of the first patent (an important prerequisite to protect our product or technology). Typically, in this first instance the amount of money needed is relatively small and can be supported by so-called Business Angels (i.e. affluent individuals who provide capital for a business start-up, usually in exchange of convertible debit or ownership equity). This first financial injection needs to permit us to achieve a subsequent milestone, which is generally represented by a portfolio of clients. At this later stage our company should have overcome the Valley of Death, which means that the risk of our company to fail has substantially diminished. At this point more important investment can be sought through so-called Venture Capitalists, who permit our company to grow at a steady state up to the stage of industrial production. Venture Capitalists are usually formed by institutions that invest other people’s money which they manage for them. Once our company established itself as well-working profit producing industry, growth should be assured through sales.

How and When To Finance Our Company? Throughout the creation of our company, we should be aware that there are two basic types of financing possibilities, which can be divided in equity financing and debt financing. Whilst in equity financing we receive capital in exchange of a part of the ownership of our company, in debt financing we need to pay back the loan we obtain. A chemical company is usually funded through equity financing. This means that we will have to cease share of stocks of our company. A share is indeed defined as a unit of account for investment. In other words we as founder of our company have to realize that an essential part of the company will no longer belong to us but is disposed to the integrity of shareholders. When presenting our idea to a potential investor we should expose our full vision, as investors are oftentimes interested to a window of opportunities instead as in financing a one-product company. We should also highlight the market potential of our product, for this a strong and clear objective is essential. It is of upmost importance that the business plan reveals our background, experience and drive to launch the company. 102 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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Figure 5. Financial life cycle of a chemical company.

It is important to convince investors of our vision. This can only be done by presenting a clear, transparent and satisfying business strategy. We should be aware that potential investors have the choice between an important number of business plans, hence we should make sure that ours sticks out of the lot. Though the principal idea should be clear from the first glance, the plan must be sufficiently completed and throughout convincing. Therefore, we should present a strong management structure, ideally by proving previous experience. Furthermore, we should make sure that our technology is protected through intellectual property rights, as no investor will be willing to invest in a company which product can readily be commercialized by anyone. 103 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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Case Study: Rive Technology - An Example of Successful Business Creation around a Vision Rive Technology (2) was founded in 2006 and is headquartered in Boston (MA) with a research-and-development branch in Princeton (NJ) and beholds additional offices in Denver and Houston. The MIT Executive Summary Report from February 2009 depicted Rive Technology as young and fast-growing company, funded by the MIT alumni Dr. Javier Garcia Martinez (3). At that time, Rive Technology was still in its innovation and development phase, employing merely two people and working hard to determine whether the designed technology could be effectively translated into a business opportunity. Today, Rive Technology employs over 50 people and commercializes nano-structured catalysts for large-scale processes, such as those used to refine petroleum, produce chemicals and biofuels, and purify air and water with increased process efficiency. In 2010, Rive and Grace (a global leader in the production of inorganic catalysts) entered into a joint development and commercialization program to combine Rive’s innovative technology with Grace’s capabilities in catalyst formulation and manufacturing. Since 2013, these companies are commercializing the marketing breakthrough fluid catalytic cracking (FCC) catalysts (4). Rive has raised more than $85 million from business angels, venture capital firms and large companies such as Black Stone, Mitsui Chemicals, Saudi Aramco and Shell. After successful scale-up and extensive pilot plant study, the prepared catalysts are being used in commercial refineries providing enhanced flexibility, better selectivity, and profitability that are used to expand the technology to new processes (5).

Molecular Highway Technology Technical Context and Understanding the Problem Most catalysts used in the refining industry rely on zeolites. These are crystalline inorganic materials characterized by an open framework structure that is build up of silicon, aluminum and oxygen. When taken together, they form an open structure of micropores (with dimensions below 1 nm). This structure makes zeolites very effective catalysts providing access to reactants, or feed molecules. In petroleum refining, long hydrocarbon chains, or feed molecules, enter the zeolite crystal through the micro-pores and are channelled to the active sites within the zeolite crystal. Once inside the pores, the long hydrocarbon chains are converted, or “cracked”, into small, more valuable product molecules, such as gasoline, diesel, or other products. Yet, these actually employed zeolites present a major performance limitation related to the size of their micropores. As a result, longer hydrocarbons cannot enter the small micropores, which impede their transformation through cracking into high value products. Moreover, hydrocarbons that enter the micropores risk over-cracking, which often result in the production of undesirable byproducts, 104 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

such as light gases. This diffusion limitation decreases product yields, product efficiency, and ultimately, profits.

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Rive’s Product Solution Realizing the drawbacks related through the use of conventional zeolite catalysts, Rive Technology offers a nano-engineered solution called Molecular Highway Technology (Figure 6). When applied to zeolites, Molecular Highway Technology creates larger mesopores (2-50 nm in diameter), or “molecular highways”, in the zeolite framework. These molecular highways improve diffusion into and out of the structure, allowing feed molecules improved access to the zeolite structure and hence to the active sites, where reaction takes place. This allows for the longer hydrocarbons, which previously where hindered to accessing the structure, to diffuse through the catalysts and be converted into the desired products. Furthermore, the molecular highways are large enough and allow that product molecules exit the structure rapidly before over-cracking can occur into undesirable byproducts.

Figure 6. Rive’s proposed product solution: Zeolites with molecular highways (6).

The Molecular Highway Technology permits to control and optimize the concentration and size of the introduced mesopores across a wide range of zeolite structures for specific applications. This technology is applicable to a wide range of zeolite processes that are diffusion-controlled, which improves product yields, efficiency, and economic performance (7, 8). 105 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

The estimated economic uplift was assessed by a laboratory tests and amounts to approximately $2.00/barrel of FCC (fluid catalytic cracking) feed for a commercial refinery. The conclusion of this commercial trial is that the additional revenue that is delivered to the refinery by replacing the incumbent catalyst with the FCC catalyst developed by Rive Technology that contains the new nanostructured zeolites, was estimated to be over $2.50/bbl of the FCC feed. As a result, Rive Technology began in April 2013 the on-going supply of a commercial FCC catalyst based on nanostructured zeolite Y. This represents the first large-scale industrial catalytic application of hierarchical zeolites (7).

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Company Evolution In the beginning, the company operated very cheaply, moving to Oklahoma to develop and improve its core technology. Since then, Rive Technology has raised a significant amount of money for a total of $85 million. This is a serious amount of money, yet a necessity. Many chemistry entrepreneurs will face the need to rise a lot of money and work several years on the development of the technology, the production of the solution and its commercialization. This all implies a lot of time, resources and money. Keeping up with its large financial scale, the company has a range of very sound investors, such as Blackstone, Mitsui Chemicals, Shell and Saudi Aramco. Since its modest beginning in Oklahoma, Rive has scaled up significantly and become an international company (Figure 7).

Figure 7. Rive Technology has successfully scaled up and commercializes advanced nanostructured catalysts to the energy sector (6).

Some of Rive’s global partners are from Europe, the Middle East, and Asia, with a portion of production in China. As a result, issues revolving around logistics, intellectual property, and working well with international partners are of critical importance. 106 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

The global scale of Rive is a natural evolution of its industry. When attempting to change global energy production, the company cannot be limited to just one market and thus needs to have a wide, international presence. It is, thus critically important to own partners.

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Conclusion To conclude with, we hope to have emphasized the most essential and basic concepts to which business creation rely on, from the actual invention to the formulation of the business idea and to the creation of the company. The basic key aspects that need to be considered, as product technology, the business plan and financing have been stressed out. When starting a business it is important to be prepared. This starts by knowing yourself and to assess your ambitions in life. It is fundamental to be aware of your limitations and all the things that need to be learned. The next step is to create your team with the scope that others do what you cannot. We provide you with basics on how to design a solid yet flexible business plan based on the customer development program proposed by Steve Blank. Most companies founded by chemists are based on new technologies and therefore patents are typically an important part of your business strategy. Finally be aware that each company has its individual life cycle with its proper financing strategy.

References 1. 2. 3.

4. 5.

6.

7.

8.

Steve Blank’s homepage; http://steveblank.com/about/ (accessed Feb 25, 2016). Rive Technology; www.rivetechnology.com (accessed Feb 25, 2016). Roberts, E. B.; Eesley, C. Entrepreneurial Impact: The Role of MIT; 2009; URL: http://cdn.executive.mit.edu/17/a2/bdcaf61a49479de51861040707ac/ mitimpactfullreport.pdf (accessed Feb 25, 2016). García-Martinez, J. G. The Third Way: Becoming an Academic Entrepreneur. Science Careers 2014 March20. García-Martínez, J.; Li, K.; Krishnaiah, G. A Mesostructured Y Zeolite as a Superior FCC Catalyst – From Lab to Refinery. Chem. Commun. 2012, 48, 11841–11843. The figure is a snapshot of a simulation video. To see the full video, go to http://www.rivetechnology.com/video-animation-molecular-highwaytechnology/ (accessed Feb 25, 2016). Li, K.; Valla, J.; Garcia-Martinez, J. Realizing the Commercial Potential of Hierarchical Zeolites: New Opportunities in Catalytic Cracking. ChemCatChem 2014, 6, 46–66. Mesoporous Zeolites: Preparation, Characterization and Applications; Li, E., García-Martinez, J., Ed.; Wiley-VCH: Weinheim, 2015.

107 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

Chapter 12

Publication Date (Web): August 17, 2016 | doi: 10.1021/bk-2016-1219.ch012

How To Start a Business and Thrive in the Global Market: A Story from U.S./Taiwan/China Jo Shen* ConCor Solutions, LLC, 10510 Wunderlich Drive, Cupertino, California 95014, United States *E-mail: [email protected].

In 1997, a group of executives from the U.S. who spent 3 years to raise $100 million landed in Taiwan and started an active pharmaceutical ingredient (API) company, ScinoPharm. Most of the >50 experienced expatriates had never been in Asia. With support from the local investors and staff members, they established a global business and successfully entered the highly regulated pharmaceutical markets. ScinoPharm faced extraordinary challenges particularly in the following aspects: 1) The size of the project required continuous fundraising, eventually reaching $250 million in the first 7 years, 2) Long lead time, a new business model, and lack of capital market for investment exit led to tremendous pressure from the investors, and 3) Cultural gap between the U.S. and local team created obstacles in project execution. Despite these challenges, ScinoPharm successfully built two world-class API facilities, one in Taiwan and one in China. It also successfully developed a sizable API business with sales reaching $150 million per year, specializing in anticancer APIs for global generic customers, as well as custom synthesis of new drugs for global new drug companies. ScinoPharm went public in 2011 with a market cap of >$1.3 billion and has won numerous awards from local and international organizations as the most successful new pharmaceutical business operation. The factors most essential for ScinoPharm’s success are: 1) Timely capture of local/regional resources for global

© 2016 American Chemical Society Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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market, 2) Experience and commitment of the founding team, 3) Market-driven business model and operating standards, 4) Project management standards and flexibility, and 5) Investment in people. ScinoPharm has been referenced as one of the best cases of “East meets West”, “Globalization of Business”, and “Futures take over from Past.” It is a good example that a new endeavor with innovative ideas could emerge from a senior team of corporate America. Startup excitements are not only opportunities for the young and fearless; old pros can also enjoy them.

Introduction ScinoPharm, an API company founded in 1997, was built in the wake of the 1994 Roche acquisition of Syntex (1). Designed to meet requirements in quality and product selections for both the global generic and new drug development markets, the company employs roughly a thousand staff with advanced education and has GMP facilities in Taiwan and China. When Syntex was acquired by Roche, the entire staff of Syntex was dismissed. This mass layoff of personnel provided an ideal opportunity to gather the best workers and build a new company. While at the time it was hard to envision, the result of the layoff actually created a lot of opportunities. Many companies in the San Francisco bay area today are composed of ex-Syntex employees, some becoming the founding members of companies such as Gilead. The story of ScinoPharm is no different. When ScinoPharm was formed, Taiwan was chosen as the corporate headquarters due to the government’s policy towards investment, with the government participating in the investment along with providing incentives for the investment. At the time of ScinoPharm’s inception, high potency APIs were most needed, particularly for oncology treatments, so the company was founded with this specialty in mind. Another impetus for the forming of the company at the time of ScioPharm’s construction was a law that had been passed in the European Union. The European patent office had just ratified a law called a Supplementary Protection Certificate, which prevented API manufacturers from producing ingredients for generic pharma companies prior to the expiration of a patented drug. This meant that if generic companies in the United States did not get APIs ahead of time to prepare to develop the formulations and file for approval, then several years later, even after the patent has expired, the originator would still enjoy the exclusivity of the market, and the victims of the process would be the consumers. Moreover, several years earlier in 1984, the United States had passed the Waxman & Hatch Law, allowing the production of generic products by the originators ahead of the patent expiration. The impact of this decision was not often recognized, but it effectively allowed generic companies to produce a cheaper version of a medication and launch immediately after the originator’s patent expired. Incidentally, under Obamacare there has been an increased emphasis placed on generic products. 110 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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Because of Taiwanese government’s role in incentivizing the initial investment, the preliminary fundraising for the company was $100 million - a much larger number than the $1-2 million that would have likely been secured had the company been founded in the United States. In 2011, fourteen years after the initial start-up, ScinoPharm went public. This timeline also contrasts with its silicon valley competitors, who typically try to go public within five years before the venture capital money runs out. Also of note, ScinoPharm has retained all of its original investors, none of whom have sold any of their shares. Currently, ScinoPharm has two plants—one in Taiwan and one in China. Both plants have received U.S. FDA and European Medicines Agency (EMA) approval and can produce oncology products as well as other products. The plants produce more than 70 APIs for generics, with 25-30 focusing specifically on oncology. Additionally, roughly 30% of the business is derived from new drug development companies, where products are still in phase I or phase II clinical trials. ScinoPharm also provides assistance with the process development of API, provides materials and support for drug submission all the way to product launch. To date, there are at least five ScinoPharm-produced products that have launched commercially in the United States as well as global markets. Since the time of its inception, ScinoPharm developed differently from other companies working in the pharma industry. In the initial years of pharma, big companies would develop products from start to finish in-house. However, the layout of the industry has changed over the past 20 years and moved into a fragmented model, with large companies farming out services to smaller ones specializing in specific niches within the market. API production differs from most production for several reasons. It is not analogous with standard chemical production because it must meet U.S. FDA requirements, and ingredient production is usually not via continuous operations, but more batch-based. Moreover, there is strong competition in the industry, the timeline for each development is unique, and the cost of investment is high relative to its return. Considering the limitations and potential pitfalls, ScinoPharm was still able to turn itself into a success story. In the globalized world, a company can be started anywhere and be successful so long as it overcomes all the challenges that the global market presents.

Success Factors for ScinoPharm There were at least five important factors that contributed to the success of ScinoPharm, as given below. Local Resources for the Global Market The local resources in Taiwan are immense and ScinoPharm was able to leverage them significantly (2). The Taiwanese government had identified API as a key area in which they were interested in investing and thus provided ScinoPharm with unmatched incentives to locate operations on the island. Out 111 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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of the initial $100 million dollars of start-up funds, over 40% was provided by the government. Moreover, other incentives such as tax reduction for investing in automation and environmentally friendly designs were offered by the government. None of the initial investors in ScinoPharm had a background in the pharmaceutical industry. There was a general belief held amongst the investors that a product could be launched regardless of whether the patent was still held by the originators. As a result of this (and other) misunderstandings, a large emphasis was placed on the need to educate everyone on the board about the rules of the industry. Even after 18 years of operations, some investors are still unsure what API is. However, the investors trust the management team and fully support the company. Speaking to this notion, it is important to reiterate that all of the original investors remain loyal to the company—something that is almost unheard of in Taiwan; in other business cases, most investors typically cash in at least part of their investments during the initial public offering (IPO). Many of the R&D programs were funded by the government with no strings attached. The size of the funding was often several million USD each time, and while the system for obtaining grants was bureaucratic, the payoff was enormous. Another unique aspect of locating a business in Taiwan is the investment structure. When a company is trying to raise money, they must provide a 10% quota for the employees to invest. This creates an environment in which the employees of the company are among the most enthused investors. Uniquely, when interviewing the first group of employees in Taiwan, the employees were less interested in when the company would go public and more focused on when they would be given an opportunity to invest in the company themselves. Despite the low income of beginning employees, when an investment opportunity presents itself, the employees’ entire family pool their money for the investment. As a result, employees recognize that their investment return may exceed their earnings and thus work incredibly hard to maintain and grow the company’s value. Strong Commitment from the Founding Team When the company was initially being set up, many of the initial investors questioned the wisdom of locating the business in Taiwan. However, after demonstrating the wisdom of the decision, more than 50 former Syntex employees from Boulder, CO and the Bahamas agreed to relocate and were nicely surprised by the natural beauty of the environment. Many of the initial team remained there, while others moved temporarily to hire locals and conduct training, and then returned home. Because of not having enough surplus money to pay the initial foreign consultants’ salaries, ScinoPharm foreign consultants were often compensated in company shares. Finally, after 14 years of development, these initial foreign consultants received a nice reward during the IPO. The locals still remain very closely in touch with the consultants even though they left over 10 years ago. This continuity emphasized by the founding team greatly served to strengthen the company. Moreover, the aggregate of experience and connections brought in by the founding team assisted the company in landing its initial business deals. 112 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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A Market-Driven Business and Global Operation Standards From day one, ScinoPharm responds to needs in the market and maintains global standards set by the markets at U.S., Europe, and Japan. These standards have been upheld in all facets, from the production facilities all the way to finished products, maintaining compliance with global and local IFRS, GMP, Quality, EHS and IP standards. Moreover, ScinoPharm also ensures that all their suppliers are in compliance with the required standards; thus, compliance is strictly maintained and all of company’s customers’ needs are also fulfilled. ScinoPharm also works to anticipate customers’ needs, working closely with them in selecting and managing products, quality and cost, in addition to the timing of the development and commercial launch. As an industry rule, it is very common to spend time and money to develop products ten years in advance. The price is always on the decline; the cost is the highest on the first day of launch. As a result, it is essential to have a secondary technology ready and filed. In anticipation of diminishing returns, a new generation of the product can then be swiftly brought to market. This type of “corporate chemistry” is very important to maintain profitability and sustain the business. Strict corporate governance is also very important to ensure that investors’ interests remain well protected and that companies are practicing everything ethically. Interestingly, in Taiwan even if a company is not a public company, the government reserves the right to exercise control over ethics and good business practice. Project Management Standards and Flexibility In the United States, project management and timelines are a minimum requirement, but in Taiwan they are less popular and used differently. ScinoPharm introduced project management to their staff members, but in certain aspects, allowed them to devise their own ways to get things done. This created modern project management tools that adapted well to local practices, the main criteria being that standards of timing and quality had to be maintained. A large part of the negotiation process had to be conducted with the local government to ensure that there were no major obstacles hindering the achievement of business goals. However, the project proved to work well and the highest business ethics standards were upheld. Investment in People As mentioned earlier, the founding team stayed with the business for at least three years. By the time they finally departed, they had left the local team technically and functionally well prepared. Furthermore, a few founding team members stayed on even longer. Notably, the CEO (the author of this article) stayed for 17 years, leaving three years after the IPO. Oftentimes when employees leave a company, the reason for leaving has nothing to do with their salaries or what they do in their job; rather, it relates more to what they can look forward to in the future. If they do not feel like they are 113 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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learning anything in a company, sooner or later they will leave. To further increase the investment in people and counter this tendency, ScinoPharm organized professional management training and organization development programs within the first two years of employment in the company allowing employees to grow and expand their knowledge of the industry. As a result, the company, over the past 17 years, has trained 125 people from 6 separate tiers who now make up the company’s management structure. Moreover, when the company expanded into China, the team was able to set up all the operations without hiring outside consultants, an achievement they attributed to the accumulation of management talents from their management training programs.

More Personal Observations on ScinoPharm •

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There has been an increase in funding in Taiwan from angels and venture capitalists (VCs) as the result of new regulations allowing biotech companies to go public. Employees now work very hard as a direct result of being given opportunities to co-invest in the companies they work for. The company itself is directed by the board and managed by professional managers. The positions on the board are distributed based on ownership of shares. The chairman—being the number one shareholder—is responsible for all company issues. Most of the people involved have a very rich set of technical expertise in the operational area, but very few have global or business experiences. A common mistake when assessing the value of a team member is to assume that the ones who speak the best English are the most intelligent. Such an assumption has proven to be very misleading. The vast majority of the employees are very loyal and display good business and work ethics. Some of the work ethic in Taiwan is cultural and is a holdout from the times of Japanese occupation of Taiwan. However, the company has experienced very strong and positive work ethics from its Chinese facility as well. Employee ownership is incredibly important because everyone then has a stake in the company’s success; they own the company and want to see its value grow. The Micro Electronic Mechanical System (MEMS) is very famous in Taiwan and ideal for developing medical devices and for manufacturing. As a result of the success of this system, many medical device producers are beginning to ship their factories to Taiwan. There are many diseases that are endemic to Asia and are not being covered by Western pharma companies. This provides opportunities for companies in Taiwan as many research programs have been set up to study these diseases. It is possible to trade stocks prior to the IPO. Also, all shares become equal in value at the time of the IPO.

114 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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Any perceived superiority displayed by the founders becomes a weakness. Instead, weaknesses and shortages in the local environment are opportunities and the exact reason for the foreign founders’ existence. It is important to bring out the best from the cultures of the East and the West. Western and Eastern cultures are very different from each other. Your personal commitment to the company means certain sacrifices, be it financial, family time, compensation, or lifestyle. Your heart has to be in the project. If it is truly your passion, then it does not feel like a sacrifice. Starting a company is like getting married—you have to believe it will work.

References 1. 2.

ScinoPharm Taiwan, Ltd. http://www.scinopharm.com/ (accessed Aug 1, 2015). PWC. Doing Business in Taiwan; http://www.pwc.tw/en/publications/doingbusiness-in-taiwan.html (accessed Aug 1, 2015).

115 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

Chapter 13

International Entrepreneurship: Lessons from the Road Publication Date (Web): August 17, 2016 | doi: 10.1021/bk-2016-1219.ch013

Sundeep Dugar*,1 and Abhinav Dhandia2 1Sphaera

Pharma Pte. Ltd., 8 Temasek Boulevard, #22-03 Suntec Tower 3, Singapore 038988 2Sphaera Pharma Pvt. Ltd. Plot No. 32, Sector 5, IMT Manesar, Haryana 122051, India *Email: [email protected].

Entrepreneurship is a mix of attitude, talent and perseverance. Successful new ventures are planned, created, and managed. Every venture demands three types of resources – time, people and capital. Conventional R&D model with the big pharma has relied on a blockbuster strategy – the need for a major breakthrough in drug discovery and development capable of delivering billion dollar revenues. The new age R&D model needs to be scalable with most of the costs being variable and only a small fixed cost and capacity structure. A successful entrepreneur on the international front needs creative out-of-the-box thinking, attention to compliance, with the understanding that the concepts of innovation and entrepreneurship need to be disruptive.

Introduction Sundeep Dugar has been in the pharma R&D space for 27 years with tenures at Schering-Plough, Bristol Myers Squibb, Scios Inc and Johnson & Johnson (J&J). He is a co-inventor for two drugs on the market - Zetia and Vytorin. At Scios Inc, he established the small molecule discovery program which contributed about $900M to the $2.4B acquisition value. His responsibilities included managing the discovery and development activities and establishing novel research programs. He was also a part of the team at J&J that evaluated and licensed Xarelto® from

© 2016 American Chemical Society Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

Bayer. It had a first year sales of €322 million for Bayer and $239 million for J&J. The 2018 sales figures for Xarelto is estimated at $3.68 billion. He started his career as an entrepreneur with the establishment of Advandtium Pharma, a full service clinical research organization (CRO) that he exited through a stake sale to Sequoia Capital 18 months later. He then subsequently founded Sphaera Pharma to establish a totally new model of drug discovery and development. In this article he and his colleague Abhinav Dhandia share with the readers their perspectives on entrepreneurship and their experience with pharma business.

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Entrepreneurship A key component of entrepreneurship and entrepreneurs is innovation, particularly disruptive innovation. Entrepreneurship is a synergistic mix of attitude, talent and perseverance. Entrepreneurs have to take initiative, create access to resources, be autonomous and risk-taking. Entrepreneurs that introduce innovation are capable of change and often do change or create entire industries, and disrupt the business fundamentals that exist. Autonomy here has to be differentiated from an autocratic style of management. While successful in some cases, organizations that are built on autocratic leaders tend to be ‘one-man shows’ and face difficulties in change management at the top. Creating and retaining a motivated team is essential for the success of the enterprise and the achievement of the overall vision. The access to and availability of resources (human and monetary) need to be adequate and appropriate. When juxtaposed on a plan of action, a dynamic road map can turn the innovation and concept to more than just a good idea and will advance it to a path of success. Successful entrepreneurs inherently challenge the status quo and push their own boundaries. The breadth of thought and confidence in one’s abilities is reflective in their demeanor. Upon observation, the common features of entrepreneurs include being an abundant thinker, “a learn as you go” approach, a frugal lifestyle, a problem solver, hustler, and an ability to listen to others, but decide for yourself. In summary entrepreneurs are • • • • • • • •

Assertive Self-motivated, efficient, diligent Capable of planning and following plans Perceptive, willing to take risks Committed Creative Toleratant of ambiguous situations or uncertainty Able to find capital, team members, and/or markets

118 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

The Process

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Successful new ventures do not appear magically out of the swirl of the market - they are planned, created, and managed. Often enough in successful ventures, we do not get to see the many years of hard work that has gone by. What appears to be overnight successes are rarely so. Three very general stages in the process of creating a venture are 1) Planning stage where ideas are generated, the innovation and opportunity are identified, and the business idea begins to take shape; 2) Implementation stage where necessary resources, both human and financial, are acquired to start the venture and the business actually starts; and 3) Management stage when the business venture is operational and is shepherded to the desired goals. Resources Every venture demands three types of resources – Time, People and Capital. Of these, the only component that is internal to an entrepreneur is time. A successful venture demands dedicated, passionate and unhindered time commitment from its leadership. Intuitive and successful entrepreneurs know the importance of a motivated and well balanced team and go out of their way to hire and retain the best available talent. Strong teams build strong businesses. The most challenging component of the triad is capital, particularly financial capital. Oftentimes great ideas fail to become great businesses because of the lack of capital. Team and Teamwork: A Critical Component Most successful entrepreneurs know and understand the criticality of building the right team to instill and promote teamwork - where the team enhances and adds value irrespective of authority. The failure and success of the team is perceived by the members as personal failure, and success and responsibility becomes a shared responsibility. Group welfare becomes the prime motivator. Teams are built; they don’t just happen. They rely partly on mentorship within the team, partly on the leadership whose critical thinking and analysis of the roles and responsibilities define the expectations of the team, and partly on the team and their positive attitudes, trust, and confidence. A successful team is akin to a symphony, where the members create harmony through team work, coordination, and mutual understanding of a musical score. It is also akin to a wedding or a drug discovery process, where many team members and events have to be synchronous for a successful outcome.

Pharma R&D Models Conventional R&D Model The conventional R&D model with the big pharma has relied on a blockbuster strategy – the need for a major breakthrough in drug discovery and development 119 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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capable of delivering billion-dollar revenues. The R&D budgets in big pharma kept increasing in spite of repeated failures. In an effort to build massive internal capabilities, big pharma companies tended to become monolithic organizations. Indeed, the lack of results suggests that this approach to small molecule R&D may be obsolete. Hence there is a need to create new models and paradigms for improved outcomes. To address this problem, many companies started placing more emphasis on outsourcing significant portions of R&D, manufacturing and other corporate processes, and rely extensively on partnerships and alliances. This was primarily driven by an intent to stem the increase in cost of R&D. This led to models of R&D stuck in cost arbitrage and the task/problem conundrum. It is far more productive to outsource a task, as the processes to complete the task have been identified and hence there is only the requirement of execution. Outsourcing problem solving presents a different issue – who is responsible for solving the problem. Contract research organizations often do not have the capability and they were not built to do so. Furthermore, problem solving is an unpredictable activity and hence of not much appeal to contract research organizations. Evolving R&D Model The new age R&D model needs to be scalable with most of the costs being variable, and only a small fixed cost and capacity structure. This is critical to provide the flexibility and agility that a company needs to address the complexities and cyclical ups and downs of drug discovery and development. Flexible and risk managed entities associated through a R&D network can provide such an option. These entities can be strengthened or leaned out, depending on the requirement of the discovery and development pathway. Smaller companies can be organized for rapid adaptation to future changes in the industry’s environment. Most modern-day business environments are dynamic; the pharmaceutical sector, being heavily innovation-dependent, leads the pack. New players have the potential to win the competitive battle in the emerging landscape before the existing players can adapt. Pharma R&D thrives in an ecosystem that is networked and collaborative between the biotech companies and academia, providing access to disease knowledge communities. Hence there was a need to create an organization that would be geared to deal with a more complex business model with a focus on the translational domain of drug discovery and development. There was a clear opportunity in the late discovery to early clinical space. In pharma R&D, selecting the right research program is key. This selection criterion is based on multiple factors including validation in animal and/or in human models, synchronization of scientific merits and commercialization opportunity, and regulatory pathway to approval. Furthermore, research programs are supported by leadership with a proven track record and an eminent Scientific Advisory Board with diverse therapeutic area background. The organization has to be structured to capitalize on scientific opportunities and remains agnostic to therapeutic area and markets. 120 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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Sphaera Pharma Sphaera Pharma has been founded with these tenets in mind and as guiding principles. The objective is to leverage global resources through a network into one organization with the capital efficiency of countries like India, corporate structure benefits of Singapore, and the technical expertise and experience of mature biotech markets like the US. Sphaera Pharma was incorporated in March 2008 with its global headquarters in Singapore and research presence in India and the US. It has established a unique model that can deliver new therapies with managed cost and risk, a business strategy of collaboration and partnership, and a focused commitment to translational research. The team looks to solve discovery problems using multi-disciplinary cost-effective internal research capabilities and engages external CROs to execute tasks through a network of service providers across the globe. This model, with access to global network and cost arbitrage also affords access to developing markets in addition to developed markets. The company focuses on strong science and looks to expand the opportunities to include non-blockbuster products. This significantly increases the commercialization opportunities and provides a niche which has been out of radar for big pharma. To our knowledge our structure and approach is like no other company that has established such an integrated model in the translation domain of drug discovery and development. Sphaera Pharma has advanced programs on multiple fronts with potential of therapeutic application in diseases associated with mitochondria depletion and dysfunction, MDR, XDR tuberculosis, neuropathic pain, oncology, chronic kidney disease, and a proprietary Platform Technology for application to APIs/NCEs to Repurpose, Reposition, Re-profile & Rescue existing drugs. Some highlights are summarized in Figure 1. More information on Sphaera is available on its website (1). Two recent articles on Sphaera are also provided (2, 3).

Figure 1. Highlights of Sphaera Pharma. 121 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

In the end, a successful entrepreneur on the international front needs creative out-of-the-box thinking, attention to compliance, and understanding that the concepts of innovation and entrepreneurship need to be disruptive. There will be a need to adapt, influence and alter the local infrastructure as they are not quite what is needed by an entrepreneur, as no place facilitates entrepreneurship like the US. But then for an entrepreneur these are merely aspects to plan for, not to be deterred by them.

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References 1. 2.

3.

Sphaera Pharma. http://www.sphaerapharma.com/ (accessed on 12/20/15). Live Mint. UK’s Wellcome Trust to fund Sphaera Pharma’s MDRtuberculosis drug development; http://www.livemint.com/Companies/ FBwwrn5b67ONDQfwUKEZ0N/UKs-Wellcome-Trust-to-fund-SphaeraPharmas-MDRtuberculosi.html (accessed on 12/20/15). Express Pharma. Sphaera Pharma receives USPTO nod;http:// www.financialexpress.com/article/pharma/market-pharma/sphaera-pharmareceives-united-states-patent-and-trademark-office-nod/160662/ (accessed on 12/20/15).

122 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

Chapter 14

Publication Date (Web): August 17, 2016 | doi: 10.1021/bk-2016-1219.ch014

Knowledge-Intensive Business Services in Brazil: Entrepreneurship in a Stimulating Scenario Thais Guaratini* Lychnoflora, Rua Ângelo Mestriner, 263 Vila Virgínia, CEP 14030-090 Ribeirão Preto, São Paulo, Brazil *E-mail: [email protected].

The economic development and competitiveness of a nation are related to the capability of its companies to innovate and to upgrade. The consequent interest in the results has contributed to the establishment of national policies that encourage the creation and maintenance of favorable scenarios for innovation. Thus, Brazil has been implementing improvements since 1980’s focusing on industrial development. An important step towards promoting innovation in Brazil was the passage of the Technological Innovation Act, Law No. 10,973 on Dec. 2, 2004. This document was meant “to provide incentives to increase innovative activities, as well as to facilitate scientific and technological research by private companies, especially by Small and Medium-sized Enterprises (SMEs).” In this scenario, a group of academic researchers gathered to initiate a business. They had at that time, besides scientific knowledge, some promising results, which have encouraged them to submit their project to a funding agency in Brazil (FINEP) that focused on projects for the development of medicines for neglected diseases. After funding approval, they applied to an incubator program with well-established relations with universities. The business model is based on two complementary goals: development of products for technology transfer and scientific knowledge-based services. At this time,

© 2016 American Chemical Society Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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the support of two other Brazilian funding agencies (FAPESP and CNPq) is essential for a healthy and sustainable growth. After seven years, under the same corporate constitution and relocation to its own building, the company has overcome challenges and is now known as a knowledge-intensive service business, acting as a facilitator, carrier, or source of innovation, interacting symbiotically with clients, and providing scientific solutions to pharmaceutical, veterinary and cosmetic industries, via an innovative model, for Brazil. This article gives reflections on the nature and the relevance of innovation in Brazil as well as the experience of researchers and entrepreneurs who offer chemical solutions to industries.

A History of the Brazilian Pharmaceutical Industry Evolution and Growth Let us begin with a few historical events that have taken place in the Brazilian pharmaceutical industry. Between 1994 and 2000, many events took place that forced industrial players to change their strategy. By 1997, Brazil had become dependent on foreign technology and there were very few businesses in the country. Moreover, the businesses that did exist were not very large. Then, when the market opened up as a result of denationalization, several of the larger pharma companies acquired some of the businesses, which had already been suffering. At that time, there were no technical or financial resources for R&D, and only the simplest facilities for manufacturing within the country were available. Moreover, there was no existing law on patent protection; thus intellectual property was copied freely. In 1996, Brazilian industry celebrated its first major milestone in recent history with the passage of a patent law. The ratification of this law put a quick end to the “copy” industry. In 1999, Brazil followed in the footsteps of several other countries and passed a Generic Law allowing for the production of generic drugs after the original patents had expired. As a result, a new market was introduced into the country. Also in 1999, Brazil created the ANVISA organization (1), which serves as the regulatory agency in the Brazilian market. Taken together, all of these policy changes forced the industry to rethink their strategies. The generics market was of great interest to the government at that time as a mechanism for alleviating problems with public health. However, the international companies operating in the country had no interest in the production of generics. Responding to this, the government decided to support Brazilian pharmaceutical industries by allowing them to produce generic drugs. This resulted in the first real push toward the growth of the national pharmaceutical industries that we still see in operation today. It has been reported that as of mid-2013, the revenue from sales of Brazilian produced drugs on the international market has reached the same level as in the Brazilian domestic market. Taking into consideration that there about 200 million people living in Brazil and that the domestic pharma market generates roughly 124 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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$26 billion dollars revenue per year, the combined revenue of the domestic and international markets is quite an impressive number. Moreover, Brazil now finds itself well-established in the emerging markets industry, alongside Russia, India, and China. From a financial perspective, Brazil ranked 10th in global pharmaceutical sales in 2007. However, by 2012, it had jumped to 4th to 6th. What is more, with the current growth rate, by 2017 Brazil is projected to move to 4th, below the United States as 1st, China as 2nd, and Japan as 3rd. Although Brazil is growing, it is still reflects a need of developing huge market and generics policies. Moreover, an imbalance is seen: from one side, there is a very high production of high quality generics and a strong and competitive local market. But from the other side, just few companies have Research and Development laboratories and the industries have a high dependence on imports and a very low level of innovation. Industrial Development It was not until 2004 that the government approved the Innovation Law (2) to encourage innovation and technology transfer from universities to industries. The law aimed to accomplish several objectives: to increase competitiveness and dynamism within the economy, to increase technological density through new and innovative products, to increase both industry and government spending on R&D, and to promote a favorable environment for innovation. Following the open innovation model, the goal was to produce results through a combination of efforts by the industry, government labs, and universities. A result of the 2004 Innovation Law was the creation of public policies. In 2008, the Productive Development Policy (PDP) was enacted with the goal of increasing innovation, investments, and exportation. Additionally, the law was also designed to increase the number of patents being filed, spur industrial competitiveness, provide a sustainable environment for new businesses, strengthen small and micro national enterprises, and improve the R&D chain. The law was also designed to achieve developmental goals in certain areas that the government had deemed important for economic development, many of which were not pharmaceutical. These included industrial health, information and communication technologies, nuclear energy, military industrial complex, nanotechnology, and biotechnology. Perspectives for a Spin-off in Brazil, 2008 The incentives for creating a “spin-off” in Brazil were rather strong. On the private side, the level of technology was quite low and there was a need for innovation. Moreover, the government was providing stimuli (funding) for collaboration on projects, and there were several instances of human resources being directed to focus on R&D within the industry. Meanwhile, on the governmental side, special funding was being allocated for innovation, in addition to the creation of several technological parks and company incubators to help stimulate new companies and startups. Innovation offices were also constructed 125 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

and filled with high-quality researchers in conjunction with funds being set aside for the creation of academic spin-off companies. When all these factors came together, the result was a symbiotic environment. This made it possible to develop new companies that could not only work in production and the transfer of technology, but also in knowledge services, which was a new niche market. It was under these circumstances and in this environment that Lychnoflora was born.

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Overview of Lychnoflora Company Structure Lychnoflora (3) is an academic spin-off that was founded at the end of the author’s PhD studies. At this time it became apparent that a different idea could be developed into a new product. The mission of the company is “to translate scientific knowledge into creative and innovative solutions to the health industries, in a sustainable manner, for the organization and for society.” Lychnoflora has two different business tracks: product development and knowledge-intensive business services. Product development is focused on the transfer of technology to companies for production, while knowledge intensive business services focus on providing solutions to analytical, phytochemical, and project management problems. The interaction with the university, through the development of R & D & I projects, is a major source of generating new ideas, new projects and scientific growth of the team.

Summary of the Spin-off Growth 2008 – Lychnoflora was born in an incubator environment. It was at this time that the formal constitution of the company was drafted. However, the company remained small and confined to the incubator. 2009 – By then, the company had begun to move beyond the incubation stages and received its first governmental funding along with the acquisition of its first lab. 2010 – Feeling the need to make improvements, the company moved to a bigger laboratory, in addition to developing a structure for providing services. 2011 – Lychnoflora received approval for “Lei do Bem” and stepped up the level of services it provided. 2012 – Four years since its birth, Lychnoflora left the incubator and began to exist entirely independently. 2013 – Lychnoflora was approved for the production of standards from natural products and continued to expand the services it provides as well as its client pool. 2014 – Finally, the company gained Enterprise Resource Planning (ERP) implementation capability (SAP) and developed an advertising program. 126 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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Revenue Over the past three years, Lychnoflora has experienced major revenue growth. In the period between 2012 and 2013, the company increased their revenue by 68%, and from 2013 to 2014, revenue grew by 76%. These massive revenue increases were due, in part, to the support the company received from the Brazilian government as a private enterprise, qualifying as a micro-business and a spin-off, as well as a technology-based company. In 2011, the company’s income was derived almost entirely from government funding; however, Lychnoflora’s profits began to soar since, reducing government funding to around 20 % at present. Additionally, the success of the company also has to do with the timing of its inception. Considering the trends in the industry in conjunction with legislative action and financial support from the government, the company was born at the “right time”. Finally, the company does not currently have any private equity investments. This is not because they are undesired. Lychnoflora is, in fact, open to investment; it is simply because this type of investment is new and little widespread in Brazil and just beginning to gain popularity.

Product Development at Lychnoflora An Overview Lychnoflora focuses on developing active ingredients from natural products, taken primarily from Brazilian biodiversity. These ingredients are then used in the human and animal pharmaceutical industry, as well as in the food and cosmetics industries. Some of the products produced by Lychnoflora include extracts for use as anti aging cosmetics, new natural compounds against leishmaniasis in both humans and dogs, and analgesic and anti-inflammatory compounds for chronic pain. Additionally, Lychnoflora also develops analytical standards from plants for the quality control of phytomedicines. One example of a new product is a new active ingredient for cosmetics. This was developed by taking the residue from extract production and developing a green chemistry purification procedure to produce a flavonoid-rich extract that can be used as ingredient in cosmetics. Leishmaniasis Treatment Every year, 700,000 to 1.3 million new cases of cutaneous leishmaniasis (CL), a disease causing destructive injuries and high morbidity, are reported. The World Health Organization estimates that roughly 12 million people across 88 countries live in areas where CL is endemic. Yet this disease is largely neglected and goes untreated. As a result, one of the major products currently being produced by Lychnoflora, in collaboration with the University of São Paulo, is for the treatment of CL. The product is a compound from a plant extract that was discovered 127 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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through extensive research. The partnership involved development of synthesis of an analogue compound and scale-up, on the chemistry side, and testing the compound in vitro, on the biology side. Following successful in vitro tests, pre-clinical pharmacological studies were conducted, and the drug toxicity was also evaluated. Finally, after all these research efforts, Lychnoflora and the University of São Paulo have now a form of the drug that will be submitted for human trials. However, the development of new products in the pharmaceutical area for human use can take 10-12 years. Recognizing these timelines, Lychnoflora has begun investing also in the development of new drugs that can be used on animals; as it takes less time to get drug approval. Specifically, the company has been exploring treatments for CL in dogs, using a similar formulation. Brazilian Agribusiness Another growing market in Brazil is the agribusiness, which makes up roughly 22% of Brazil’s gross domestic product and represents about 30% of total exports of Brazil. Within this market, the soybean industry and the meat industry, representing $31.4 billion and $17.4 billion in annual revenue, respectively, are the largest segments. When we look at the beef market specifically, we see annual revenue of $7.1 billion dollars. Because of these numbers, it is expected a very strong market for veterinary products. One of the largest problems in the Brazilian cattle market has to do with the losses incurred as a result of cattle tick infestation. Ticks can wreak a lot of havoc on the industry, resulting in lost income due to money being spent on acaricides to keep ticks off of cattle, bovine weight loss, blood loss of 500 ml per day, milk loss of 95 liters per lactation period, and damage to cattle hide. Furthermore, cattle ticks increase the mortality and disease susceptibility of cows and negatively affect the population’s birth rate. In order to reach this market and provide a solution to the tick problem, Lychnoflora, in partnership with Decoy, another spin-off company, is developing an ecological solution to control ticks. The product works by using pheromones to attract ticks to a trap that is placed on the cattle’s tails. Once in the trap, the ticks cannot escape and remain there until removed. This innovation is great for the agribusiness because there are no drugs or residues used when combating the issue of ticks; it is 100% ecological.

Knowledge-Intensive Services at Lychnoflora When providing knowledge-intensive services, Lychnoflora focuses on giving solutions to analytical problems, access to high technology that is not available to other industries, as well as scientific support for researchers. Many of the projects the company carries out deal with reference compounds, degradation products, characterization and chemical analysis, natural products, clinical and non-clinical pharmacokinetics, as well as technical and scientific consulting services for the development and implementation of new projects. 128 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

Anti-inflammatory Drug development

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A project, which was one of Lychnoflora’s first interactions with Brazilian industries, was the development of an anti-inflammatory drug. In developing this drug, the producers were using all natural ingredients, and were having trouble with extraction standardization, determination of chemical profile, characterization of constituents, and with obtaining reference compounds. Lychnoflora was able to help them on this project, with all of these issues. The resulting drug that was created as a result of consultation with Lychnoflora’s and using its services looks promising and is a truly innovative Brazilian product.

Current Situations It has been well documented in the news that Brazil is undergoing a governmental crisis which has been followed by an economic crisis. This has resulted in a very large reduction in federal support to the industry and a cessation of future governmental support. The government is no longer giving support for startups, so the prospects have changed. Funding must now be sought in the private sector or from international funding programs. This is why the author mentioned earlier that Lychnoflora was born at the right moment. Brazil is still highly dependent on imports in the pharma market, with a high demand for innovation. Thus, Lychnoflora is still determined to push ahead and continue to grow and offer chemical solutions to industries.

References 1. 2.

3.

ANVISA, Brazil Health Surveillance Agency; http://portal.anvisa.gov.br/wps/ portal/anvisa-ingles (accessed Aug 1, 2015). BRASIL. Lei de Inovação Tecnológica (Lei n.o 10.973/2004). Brasília, DF: Congresso Nacional. Atos do Poder Legislativo, DOU, 232, of Dec. 3rd, 2004. Lychnoflora; http://lychnoflora.com.br/lychnoflora/ (accessed Aug 1, 2015).

129 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

Chapter 15

The Creation of a Globally Sustainable Generic Pharmaceutical Model Publication Date (Web): August 17, 2016 | doi: 10.1021/bk-2016-1219.ch015

Sudhir Nambiar* Dr. Reddy’s Laboratories, Ltd. Integrated Product Development Bachupally, Qutubullapur, Telangana, India *E-mail: [email protected].

The Indian pharmaceutical industry has emerged as a major global supplier of affordable medicine. Indian pharmaceutical industry accounts for 9.3% of the global pharmaceutical production by volume and 1.5% of the global pharmaceutical production in terms of value. This industry has recorded a cumulative average growth rate of around 14% during the last 5 years. The factors that led to the birth and growth of Indian pharmaceutical companies, the largely local challenges faced by them, and challenges in the global environment are explored. The challenges faced by entrepreneurs in raising capital, negotiating government policies, recruiting talent and spotting opportunities among favorable demographics, rising income levels, growing health awareness, increasing incidence of lifestyle diseases, increasing penetration in rural market and insurance coverage, some of the key factors driving growth of the local pharmaceutical industry are discussed. How Indian companies are gearing up to face regulatory and marketing challenges and thrive globally are briefly covered.

© 2016 American Chemical Society Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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Introduction Over the years, the Indian pharmaceutical industry has emerged as a major global supplier of affordable medicine. According to India’s Ministry of Commerce and Industry, India has more than 550 manufacturing sites registered with the US Food and Drug Administration (FDA), of which about 323 are FDA approved, as of March 2013. Additionally, there are more than 350 manufacturing sites in India endorsed by the EU for their Good Manufacturing Practices as of April 30, 2013. Indian pharmaceutical industry accounts for 9.3% of the global pharmaceutical production by volume and 1.5% of the global pharmaceutical production in terms of value. This industry has recorded a cumulative average growth rate of around 14% during the last 5 years. In this article, the factors that led to the birth and growth of Indian pharmaceutical companies, the largely local challenges faced by them, and challenges in the global environment are explored. The challenges faced by entrepreneurs in raising capital, negotiating government policies, recruiting talent and spotting opportunities among favorable demographics, rising income levels, growing health awareness, increasing incidence of lifestyle diseases, increasing penetration in rural market and insurance coverage, some of the key factors driving growth of the local pharmaceutical industry are discussed. Similarly the Hatch Waxman Act (1) opened up the US markets to generic products, and countries like India started drug exports to the US and other regulated markets with great success. Working in an international environment has its own challenges especially in the regulatory and marketing areas. It also opens up the quality systems and practices of suppliers for evaluation by international regulatory agencies; e.g., FDA. How Indian companies are gearing up to face these regulatory and marketing challenges and thrive globally are briefly covered. The success of a few companies has also spawned several new entrepreneurial efforts: support for existing companies, competition with existing companies, and identification of new areas for business especially in an international context. These factors have led to Hyderabad and Bangalore becoming international centers for the pharmaceutical and biotech industries, respectively, in India.

Background on the Global Pharmaceutical Industry The global pharmaceutical market is incredibly large, with sales expected to hit $1.1 trillion annually in 2015. Within this industry, the 10 largest drug companies control over one-third of the entire market. In 2013, North America alone accounted for 41% of global pharmaceutical sales, compared with Europe, which accounted for 27.4%. The global generic industry constitutes roughly one-fifth of the global pharmaceutical industry, and was worth around $200 billion in 2014. However, it is expected to grow at a compounded annual growth rate of 11% until 2018 when several blockbuster drugs will lose their patents, adding a potential $150-billion to the opportunity. Like the global pharmaceutical market as a whole, the United States represents the largest market for generic medications, accounting for 45% 132 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

of the market. As of 2014, the top ten global generic companies accounted for 64.1% of market share. Within the generics market, cardiovascular and other central nervous system (CNS) agents are the leading market segments, together constituting roughly 35% of the global generic pharma market.

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The Indian Pharmaceutical Industry The Indian pharmaceutical industry ranks among the top five countries by volume in terms of production and accounts for about 10% of global production. Turnover within the industry has grown from $0.3 billion dollars in 1980 to 21.73 billion in 2009-2010. Some of the main factors that have supported this growth have been low-cost skilled manpower and innovation. However, the Indian industry is fragmented, with roughly 10,000 manufacturers in the organized and unorganized segments. Roughly 77% of manufacturers produce formulations, while the remaining 23% manufacture bulk drugs. India has been dominant in the generic space, filing almost 50% of the global drug master files (DMFs). But why did India “go generic” and how did it get to be so good at it?

The Quest for Affordable Medicine: The Generic Way The story of India’s route to the generic market is related to the country’s quest for affordable medicine, beginning at the end of British colonization in 1947. For nearly two decades the existing patent laws and lack of access to technology resulted in relatively low amounts of bulk drug synthesis in India. As a result, most of the medicine in the country came from western countries or Japan, leaving the people with no access to affordable medicine. To make medicine more accessible to the public, the Indian government created two public limited pharma companies. These two companies would later become the forerunners to most of the generic companies that exist today: Dr. Reddy’s, Ranbaxy, Sun, and others. In the period of 1980 – 2000 Indian companies began to take advantage of the technological advances they had over their neighbors, establishing joint ventures in neighboring countries where they were the dominant partners. Then, in the 1990s, companies like Ranbaxy, Wockhard, and Sun began using Brownfield investments (2) as a policy for internationalization in developed countries like the United States with the goal of gaining access to the markets. In doing so, they began acquiring smaller companies in the United States and Europe through which they could access the market. Additionally, they also began offering contract services for R&D and manufacturing for multinational companies. The first such venture was Ranbaxy’s tie-up with Eli Lilly of Japan. As a result of its international ventures, a lot of FDI has been flowing into India and the country has maintained a strong GDP growth rate of around 8-9% between 2005 and 2015. Similarly, the Indian market’s percentage of global GDP 133 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

has also been growing, holding 4.17% of the global market in 2005, and moving up to 6.28% by 2015. This is particularly interesting as the population has also been increasing both in India and in the world. At a certain point during this period, generic research exploded as a result of the Indian government’s support of generic drugs in India. Once this action was taken, it opened the doors for several Indian companies to start generic companies and develop their own technology. While the government of India now officially recognizes patents, the 20-30 year window that was provided by the government was integral in laying the foundation of the generic industry in India.

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Indian Pharma Industry SWOT Analysis Strengths The continuing and large growth in Indian GDP has led to increases in the disposable income of the Indian public and fostered a more positive attitude towards spending a portion of private earnings on healthcare. Moreover, the cost competitiveness of the Indian market provides an advantage for companies operating in the pharma industry. What is more, India is home to a very large low-cost and highly skilled English-speaking labor force. Weaknesses The all-around poor infrastructure is a major challenge for India and serves as a disadvantage. Additionally, other areas of concern are the stringent price controls, lack of data protection (though this is increasingly an issue of the past), as well as poor health insurance coverage. Opportunities The Indian market has many opportunities for growth. Currently, the global demand for generic medication is rising, and there is rapid growth in both the overthe-counter (OTC) and generic markets. Moreover, market penetration outside the cities is also on the rise with more non-metro markets being tapped. This has created a large demand for quality diagnostic services and increased healthcare insurance coverage. Furthermore, this has created increased opportunities for investing in multinational corporations (2) and for public-private partnerships in strengthening infrastructure. Threats Despite its already large and rapidly growing population, India is still threatened by potential labor shortages. In addition, other areas of concern are the potential for wage inflation, a government expansion of the Drugs Price Control Order (DPCO), counterfeit medications, and competition from emerging economies. 134 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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Innovation and Entrepreneurship Innovation in the Indian pharma industry has largely focused on the generic space, which has been largely a result of the previously mentioned historical reasons. The reverse engineering of complex generics has resulted in a plethora of sophisticated and innovative approaches that have resulted in the reduction of medication costs for the consumer. Complex generics are just a step away from innovative medicine, seeing this as a progression to eventually discovering new medicines. There has also been a noticeable increase in collaborations between Indian generics companies and reputed faculties of international universities. This is significant because as the problems of the industry become more complex, it is increasingly important to understand the fundamentals of the science. This has created a more sophisticated approach by Indian companies. From an entrepreneurship perspective, the initial success of five or six major Indian generics companies (3) have led to the rise of several other large Indian generic companies—Hetero Drugs, Divis, MSN Pharma, to name a few of them—in addition many smaller players. Of these smaller companies, many work to supply key materials: active pharmaceutical ingredients (APIs) and intermediates, to the key pharma companies. As a result, a network within the pharma industry has been formed, each company working together and supporting one another. Because of this trend, the cost of APIs has decreased tremendously, some going to the regulated markets and others to the unregulated markets. Conversely, what has also occurred is a ‘commoditization’ effect. Any new player that comes into the market has lower overhead costs than an established one and is forced to make their product slightly cheaper than their competition. The result is that prices continue to be driven down. Furthermore, the importance of chemistry to a certain degree is declining in the originator pharma space and yielding its position to biology.

Affordability, Access to Medications, and Innovation The main focus, challenge, and theme of the Indian government have been to provide affordable medication to the masses. Through the development and use of generic medicines, the government has largely been able to achieve this main goal. However, India still has not spent enough money or time on discovering new medicines and is now paying the price for it. Currently, India does not have any new drugs to fight tuberculosis, malaria, and other tropical diseases. This has resulted in continued negative health impact for many people of India and for those who live in other tropical countries. When searching for solutions to these problems, it is difficult for India to work with more established western companies because there is not enough profit in developing medication for tropical diseases. As a result, there are no new drugs to treat these diseases. Therefore, the innovative challenge for Indian pharma will be to discover affordable medicines moving forward. 135 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

Owing to a lack of credible discovery programs in the country by multinational companies, the “drug hunting” culture in India is relatively weak. There are several potential factors causing this deficiency: a. b. c.

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d.

e.

Government policies, including price control. A fragmented market that is relatively low in value. This results in few multinational companies being attracted to the Indian market. Tropical diseases and vaccines are low on the priority lists of most companies. Most Indian pharma companies are relatively small and do not have the financial strength to handle the entire development cycle. There was a time when many of Indian companies had a full development cycle, but they did not have the funds to maintain them. As a result, they have taken different approaches, such as out-licensing their medicines to the big players. However, even with this model, financial constrains still remain a major problem. Lack of a unified plan: the government, academia, and industry have not been collaborating as much as needed.

The Future In India, the government, academia, and industry are beginning to actively work together to make a road map for creating a drug hunting culture in the future. Unlike other large developing countries such as China, it has taken India a longer time to develop this culture, but over time it should succeed. Current plans that are underway include supporting biotech start-ups through venture capital, angel funding, government support, and other sources.

References 1.

2.

3.

Generic Pharmaceutical Association. Hatch-Waxman: Driving Access, Savings & Innovation; http://www.gphaonline.org/media/cms/ Hatch_Waxman_Driving_Access_ Savings_and_Innovation.pdf. Investopedia. What is the difference between a green field and a brown field investment? http://www.investopedia.com/ask/answers/043015/whatdifference-between-green-field-and-brown-field-investment.asp (accessed Jan 28, 2016). Business Maps of India. Pharmaceutical Companies in India; http:// business.mapsofindia.com/india-company/pharmaceutical.html ((accessed Jan 28, 2016).

136 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

Chapter 16

From Chemistry Student to Chemical Entrepreneur and Public Company CEO Publication Date (Web): August 17, 2016 | doi: 10.1021/bk-2016-1219.ch016

Frank Jaksch* ChromaDex, Inc., 10005 Muirlands Boulevard, Suite G, Irvine, California 92618, United States *E-mail: [email protected].

Entrepreneurship involves matching a need with an innovation, and this concept is no different in the field of science and chemistry. Before we take a look at the world of chemical entrepreneurs, let us look at internet or computer scientists, who are often known more for their coding capabilities than their business expertise. Why is there a long list of insanely wealthy computer programmers, such as Bill Gates, Mark Zuckerberg, Pierre Omidyar, Sergey Brin, and Larry Page, just to name a few, that became incredibly successful entrepreneurs? Why don’t we see more science or chemistry entrepreneurs sharing similar success? What motivational difference exists in the world of computer science that drives entrepreneurship, and why is it seemingly so different than chemistry? Innovation and entrepreneurship in science and chemistry can have a real world impact on a wide range of very diverse global markets, including food, drug, agriculture, personal care, and energy, just to name a few. In 2014, ChromaDex, a natural products chemistry company, did business in over 40 countries, with over 28% of its total revenue coming from international customers. So how did a chemistry student from Valparaiso University make a decision to start a natural products chemistry company in 1999, as well as figure out how to not only survive, but prosper in a growing global market interested in natural products chemistry?

© 2016 American Chemical Society Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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Introduction: The Path to ChromaDex ChromaDex is a public company built on a natural products chemistry platform that utilizes business relationships with universities to track and license research-backed ingredient technologies (1). The company began in a spare bedroom of my house in 1999 and went public in 2008. I graduated from Valparaiso University in 1991 and did what every chemistry major was supposed to do - I got a job working in a laboratory. I pondered going on to get my PhD, but decided against it. My time at the quality control lab did not last long and after a year I decided that I needed to move on to something different. However, I knew that I still wanted to stay in the field of chemistry and use my education for something productive. I loved science and the chemistry side of things, but I did not want to work in a laboratory. What other options were there for someone with an undergraduate degree in chemistry? After all there are plenty of businesses that involve chemistry, surely there must be jobs outside of the lab that require chemistry. The decision was clear; I moved towards the business side of chemistry and landed a job in 1992 with the technical sales division of a growing analytical chemistry business. By 1993, my success in technical sales led to an opportunity to set up and run international subsidiaries for this growing analytical chemistry business. But yet again, this was still not enough, and something was still missing. Eventually, I left in 1999 to pursue what would become ChromaDex. I was 29 years old, which was the ideal time for starting a business because I had minimal obligations, family or financial, that positioned someone for taking this type of risk. However, before discussing entrepreneurship from a chemistry perspective, let us take a look at entrepreneurship in the computer programming industry.

Chemical Entrepreneurs versus Computer Scientists Despite the value of chemistry in some of the world’s largest industries, famous and successful entrepreneurs seem to congregate in the computer industries. The good news, however, is that the market seems to be changing. There is a massive boom currently happening in the biotech innovations market that is producing great changes and big companies. Many of these companies are often referred to as “unicorns”—companies valued at over $1 billion who have achieved success through fundraising. Theranos, a company started by Stanford drop-out Elizabeth Holmes, is revolutionizing the blood diagnostics market, expanding the scale of information that can be obtained from a single drop of blood. Even more surprising is the $10 billion price tag she has achieved by following the techy Silicon Valley computer model. Through this model, she has been able to not only start a small company with an innovative and disruptive technology, but also garner a very large valuation. Other chemistry-based companies such as Moderna Therapeutics and Calico (a Google Ventures investment) are following this same model. 138 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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Venture groups are also expressing an interest in biotech innovations. For example, Palo Alto Ventures is currently offering $1 million to any idea that can make significant progress in addressing issues related to aging through a prize called the Palo Alto Longevity Prize. The food industry is also beginning to make use of the Silicon Valley business model. Hampton Creek, a company founded by Joshua Tetrick, has found success with a non-egg-based mayonnaise marketed under the name Just Mayo. While the product itself may not be particularly interesting, the business platform of the company is progressive. Having been designed to revolutionize food products, the company uses chemistry and biology to find and create innovative products. All of these examples clearly demonstrate that innovation is happening in the industry.

What Needs To Be Done? From a chemistry perspective, what needs to be done to further fuel innovation? Success Brings Success Unlike a tech-related presentation that would have a full auditorium, chemistry lectures do not attract very much interest. We need to start by filling the seats of chemistry presentations and generating interest in the field. It is said that “success brings success”, and this is absolutely true; the more success that the chemistry industry has, the more the seats will begin to fill up and produce other success stories. Undergraduate Programs Need Updating According to a recent Wall Street Journal article, chemistry as a major is on the decline (2). While it used to be said that economics was a “dismal science”, it is now being suggested that chemistry is the new “dismal science”. Undergraduate programs are too rigid and leave little room for students to pursue side passions. This has been driving students away from the field. Of the one-third of new college students who pursue a major in STEM, only 1.2% of all freshmen will become chemists. Moreover, this number is still on the decline. Even more concerning is that universities are having a more difficult time trying to get chemists in the freshman classes. For those that do join, many subsequently transfer out of chemistry to pursue other programs. This is troubling for the industry. While this is a problem for the field as a whole, it also creates problems for those in the chemistry businesses, who are looking to hire chemists. As a result, it is clear that steps are needed to be taken to reinvigorate chemistry programs at the university level, not only to entice students into becoming chemists, but also to retain those who initially begin their studies in chemistry. How can this be done? 139 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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For one, professors need to recognize this trend and foster students that challenge the norm. This has not been commonplace in the chemistry world; however, there are a couple examples that have emerged: Emory University in Atlanta and Davidson College in North Carolina have been attempting to move beyond the traditional format and move on to a new style of chemistry based on interdisciplinary foundational courses and an array of electives. Davidson’s new curriculum, for example, requires students to take one course each in five foundational areas, and then allows the up-and-coming chemists to choose from a range of higher-level classes on subjects such as medicinal chemistry and immunology. Chemistry Needs Founders and Joiners In a recent article in Science, the concept of “founders and joiners” was discussed in relation to chemistry (3). There are two styles of entrepreneurs: the ones who will found a company, and the ones who take a risk by joining a company at an early stage. As a rule, “founders” are significantly more risk tolerant and have a stronger interest in management, whereas “joiners” are more interested in functional work activities, such as research and development. In a recent study, 4000 PhD’s were interviewed about their opinion on this topic. Forty-six percent expressed interest in joining a start-up as an employee, while 11% expected to one day start their own company. Incidentally, the article also cited that mandated entrepreneurship training is likely to be inefficient in fostering the “founders and joiners” relationship. Incubators Lower Barriers to Entrepreneurship Incubators are not new, but in recent times their popularity has been increasing. Historically, incubators have not been very successful, but the concept is beginning to turn a corner and they are starting to achieve results. Massachusetts Institute of Technology (MIT) has a life science incubator (LabCentral) where any scientist can rent a bench with others to pursue their own entrepreneurialiesdreams (4). In just six months after opening, the center had reached capacity. Last year alone, LabCentral tenants collectively raised $200 million. Similarly, Venture Development Center at the University of Massachusetts, Boston, had 104 applicants for a mere three open laboratory spaces. One of the reasons incubators are important has to do with visibility; scientists can see that there is place on campus where they can talk to somebody and try to find a way to take their interests and research and transfer them into a start-up. As a scientist entrepreneur, your time should be exclusively focused on what problem your business can solve and how you use science to address it. Without incubators, these scientists may not know where to start or how to take their ideas to market. The visibility angle is half the battle. How do we find more chemists that have an entrepreneurial spirit and are willing to take the necessary risks to make entrepreneurship happen? 140 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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The Real World Impact of Innovation and Entrepreneurship in Science and Chemistry Innovation is built upon investments and advances in science technology, engineering, and mathematics. Chemistry is associated with more than 96% of all the world’s manufactured goods, but without innovation this would not be possible. There are two closely related concepts in this field: “innovation” and “disruptive innovation”. It is “disruptive innovation” that will be the real game changer. Unicorns (as previously mentioned), by definition, are disrupters; if you’re not a disrupter, you have no chance of becoming a unicorn. Not every company has to be a Unicorn, but it is disruptive technology that is going to “shake up the ranks” and drive success. Furthermore, it is this disruptive success that will breed more success; if we want to get more people interested in chemistry, then we are going to need more disruptive technology.

“Build It and They Will Come” Is Not a Business Model One of the main problems experienced by the industry is that many great inventions never make it to commercialization. A scientist could have the greatest technology on the planet, but if it cannot be successfully commercialized, then it is basically dead. Moreover, the best technology is not always the winner. This is accurately illustrated by the early days of Apple and Microsoft. Apple was technologically superior, but Microsoft was more successful. In the words of Madeleine Jacobs (5), former Executive Director and CEO of the ACS: “Many scientists intrinsically understand that their discoveries might translate into important, highly profitable entrepreneurial enterprises. But making a discovery or patenting an invention is only the beginning of creating a company. Bringing the idea or invention to commercialization and creating a successful company requires a different set of skills and knowledge than carrying out basic research.” This goes to show the patenting process or the patent of an invention is only the beginning of creating a company. ChromaDex, as an example, has built its entire business model on this principle.

Commercializing Innovation Failed commercialization is a common problem with scientist founders who believe their technology is so good that it will sell itself. This is not a business model. Some will succeed with this, but the odds are heavily stacked against this approach. To set yourself up for success, you have to build a business plan and find a way to fund it. Moreover, you need to find the “joiners” (if you are a “founder”) because the “joiners” will be critical to your success. And when you go in search for “joiners”, you want to find people who will be committed to the company and will stay for a long time - you don’t want to train people and have them leave. 141 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

Another key issue is establishing a sales and marketing team. A common pitfall is that scientists do not often understand sales and marketing. However, there is a caveat to that: If you are a biotech company, you don’t need to focus as heavily on sales and marketing. Instead, it is more important to put your energy toward a developmental plan that will get the drug to market. If success comes, be prepared to grow. There have been stories where success actually killed the company, so it is possible to fail by succeeding. This must not be overlooked.

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ChromaDex: An Overview The company was founded in 1999 by me, Frank Jaksch, and is headquartered in Irvine, California. Since then, ChromaDex has expanded to employ approximately 80 people and taken on two additional locations, with an analytical laboratory in Boulder, Colorado and a regulatory consulting office in Rockville, Maryland - both expansions are the result of acquisitions. The analytical laboratory was acquired in April 2003 from NaPro BioTherapeutics, while the regulatory consulting office acquired Spherix Consulting in December 2012. When founding the company in September 1999, standard procedures were followed - a business plan was established, and then the search for funding began. But then something interesting happened. When the hunt for venture capitalists and investment banks was just kicking off, the internet bubble was at its peak, and then three months later, it popped. Consequently, this left ChromaDex with no financing and the money came to a grinding halt. However, this was not just a problem for ChromaDex; the business of financing early stage companies or start-ups dried up entirely. Not anticipating any rapid improvement in the market, the only option was to take a slower approach, by boot-strapping or self-funding operations until the revenue and cash flow growth could sustain the company. This resulted in 9 years of personal funding and not receiving a salary for the first 6 years. ChromaDex continued to grow. Finally, in 2008, ChromaDex received its first outside significant funding at the same time the company went public. A Unique Business Model At ChromaDex, the chemistry component is not the most important aspect of the business. The company utilizes information flow that comes from the growing customer base. This comes primarily in the form of market intelligence derived from research activity at university and research institute customers. ChromaDex sells compounds out of its catalogue to research institutes and universities for early stage research. This serves as a great guide to identify potentially valuable intellectual property coming out of the research track at an early stage and then to overlay it with interest in the consumer product markets. This model puts ChromaDex in a unique position to cherry pick valuable intellectual property and then commercialize novel ingredient technology. 142 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

Essentially, ChromaDex allows researchers to spend millions of dollars developing technology and then the company licenses and develops a product that can be commercialized. This platform works due to the vast amount of technology coming out of the research track. Oftentimes, researchers don’t understand how to commercialize their product. This is where ChromaDex, in particular, has been very successful. Through a four step process - discover, acquire, develop, and commercialize, ChromaDex has been able to successfully commercialize technologies into multi-billion dollar markets.

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International Markets International markets are difficult to avoid, even for startups. For ChromaDex, the international marketplace was essential and one of the first sources of revenue. In today’s world, any time you launch a viable product that meets a real need, you will inevitably be pulled into international business. It is very important to understand the risks of doing business internationally. International markets are very different from domestic ones and have many more considerations, such as understanding international sales and payments as well as distribution channels. Business relationships with international customers are very different from domestic customers. This can also be true with international vendors as well. In addition, the business risks associated with dealing with international customers and vendors are also very different. As a company, ChromaDex relied heavily on the international market. In 2014, 28% of customer accounts were international, 25% of sales were made on the international market, and 71% of the 25% of international sales were conducted through international distributors. Understanding the distribution track and knowing how to navigate it is incredibly important because sometimes products will not be sold directly to the customer. Incidentally, when looking at the sales numbers from 2001, the ratio of domestic to international sales was roughly the same because of ChromaDex’s early focus on international sales. Life as a Public Company CEO Why go public? There are right and wrong reasons. For one, it is a very efficient way of raising capital. Everyone is familiar with venture capital, but this is sometimes also referred to as “vulture capital”. This label is, in part, true. The earlier the stage of the company or technology is, the more the VC will take. “The longer you can stave off the wolves in going to raise money, the better you are going to be.” When ChromaDex went public and raised money, it chose a route called a reverse merger transaction, which some may not have considered as being the best decision, but ended up being successful as a cost-effective path. The success was due in large part to everyone at ChromaDex having done their homework. They made sure to have all the right people in the right places when the transaction went through. 143 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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Just three months after ChromaDex went public in 2008, the market crashed again. This time, however, ChromaDex was out in front of the crash, rather than behind it. Was it good to be a public company in a market that bad? No, but at the end of the day it did not make a difference because the funds had already been secured and there was enough cash in the bank to not only help the company weather the storm, but to help the company prosper during an incredibly difficult time in the world economy. Running a public company requires learning a completely new set of skills. Unlike running a privately held company, public companies have to deal with investors, bankers, lawyers, accountants, auditors and analysts, do a lot of public speaking, and conduct conference calls. None of these newly needed skills have anything to do with chemistry, and they are most certainly not skills that are taught in undergraduate chemistry classes. In reality, the end result is a “tale of two companies.” On one hand, there is ChromaDex the public company run by the CEO, and on the other there is the actual business itself. As a result, the two sides are run completely differently. Many of the ChromaDex employees have little knowledge of the public side of the company and are focused exclusively on the business aspects of it.

Conclusions There is a wealth of innovative and disruptive innovations that are being created in university research laboratories. However, failed commercialization can kill these technologies. As a result, companies like ChromaDex focus on licensing this type of intellectual property and commercializing it. The more success there is with commercialization, the more momentum that is built. Currently, the industry is moving so quickly that ChromaDex struggles to keep up with the new technology licensing opportunities that are in front of us. In the beginning, ChromaDex would use its unique business model to find and license out technology on its own, but following the company’s success, the tables have turned and it is now being sought after by scientists seeking a viable partner to commercialize their technology (6). Modernization of the chemistry curriculum is essential to incentivize chemistry students to stay in the field and to help them realize that there is more to chemistry than just working in a lab. There is a whole business side and entrepreneurial side to the industry. Moreover, both graduate and undergraduate chemistry faculties need to better identify students with entrepreneurial spirit and find ways of advising or mentoring them. It is important that any student with an entrepreneurial spirit has the support they need to be successful. Along this same line of thinking, incubator type programs can provide approachable or visible options for students and faculty. The bottom line is that we need more chemistry entrepreneurs. The more we have, the more we will create. There are a lot of great companies appearing - some with real disruptive technology - and now is the time to “throw some fuel on the fire.” 144 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

References 1.

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2. 3. 4. 5. 6.

ChromaDex website; https://chromadex.com/About-Us/About-ChromaDex. html (accessed July 1, 2015). Korn, M. The Wall Street Journal (U.S. Edition) 2015 April12. Roach, M.; Sauermann, H. Science 2015, 348, 1200–1203. Gura, T. Science 2015, 348, 1196–1199. Jacobs, M. Chem. Eng. News 2011, 89, 32–48. ChromaDex CEO Frank Jaksch to Be Interviewed Today on Clear Channel Business Talk Radio DFW 1190AM; http://finance.yahoo.com/ news/chromadex-ceo-frank-jaksch-interviewed-151114724.html (accessed January 6, 2014).

145 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

Chapter 17

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The Development of a Global Small Chemical Business with International Marketing and Outreach Sharon V. Vercellotti* and John R. Vercellotti V-LABS, INC., 423 N. Theard Street, Covington, Louisiana 70433, United States *E-mail: [email protected].

V-LABS, INC. was founded in 1979 as a laboratory specializing in carbohydrates with a vision of making available both products and services to researchers in biotechnology, biochemistry, and in the rapidly developing field of glycobiology with its potentially revolutionary approaches to solving biomedical problems. There was at that time a whole emerging field of biochemical research built on the ubiquitous metabolism of carbohydrates that spans the gamut of pharmacology, immune responses, cancer medicine, materials science, human nutrition, and renewable bioenergy. Through a global partnership we have built a network to supply researchers with rare, complex carbohydrate structures which are authentic standards in analytical instrumentation, enzymology, and immunology. This report will give examples of the kinds of oligosaccharides assembled and the distribution network through which they are expedited to researchers.

Introduction This chapter describes how a small chemical business from a somewhat remote Louisiana town has become involved as a global trading partner with New Zealand Pharmaceuticals, Ltd. (NZP) of Palmerston North, New Zealand, and its specialty carbohydrates subsidiary, Dextra Laboratories Ltd, from Reading, United Kingdom. This business is a niche in the very significant exchange of © 2016 American Chemical Society Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

key fine chemical components for carrying out potentially lifesaving research in pharmacology, immunology, oncology, hematology, and cell metabolic surface signaling mechanisms. We are contacted daily by customers and colleagues from many branches of research to discuss their particular application and how we might provide them with very small amounts of highly purified compounds through our experience as well as the NZP-Dextra collection of very rare carbohydrate structures.

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Foundations for the Business As background of how V-LABS came to be established thirty-six years ago, it became more apparent to us that there was a whole emerging field of biochemical research built on the ubiquitous metabolism of carbohydrates. Such chemical literature spans the gamut of pharmacology, immune responses, cancer medicine, materials science, human nutrition, and renewable bioenergy. The chemistry of the carbohydrates is one of the cornerstones of all of organic and biological chemistry. In 1979, V-LABS, INC., was founded as a laboratory specializing in carbohydrates with a vision of making available both products and services to researchers in biotechnology, biochemistry, and the rapidly developing glycobiology field with its potentially revolutionary approaches to solving biomedical problems (1). While still doing research in biochemistry at Virginia Tech prior to that time, the authors became increasingly aware that classes in business administration were essential to become an entrepreneur in biochemical technology. A summary of the economic pieces necessary to form the company are listed in Figure 1.

Figure 1. Economics of establishment of the business.

The Small Business Administration (SBA) guaranteed loan bore an interest rate of 11% per annum, closing costs were 7% and the loan bore a 10-year term. Although the SBA loan interest may sound high in 2015, the guaranteed loan had a great advantage over the 1979 prime rate of 21%. A downside of the loan was that there was a four-month wait for the final SBA approval. When construction finally began, it took six more months to build the 1600 sq. ft. laboratory, outfit 148 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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it with proper utilities or equipment, and move in all set-ups to begin laboratory work in March 1980. Establishment of a sustainable business not only involves the physical office or work area but also the many legalities for incorporation and government relationships in terms of tax structure and compliance with environmental law and regulations (Figure 2). The current business to be described has heavily depended on this earlier business infrastructure that was established.

Figure 2. Cost accounting for V-LABS, INC., operations over the years.

The following figures (Figures 3 and 4) list diverse laboratory interest areas that V-LABS, INC., has pursued over the years in carbohydrate chemistry. Such a cross section of experiences has equipped them with abilities to tackle effectively many kinds of challenges from industrial clients.

Figure 3. Processing of water soluble polysaccharides listed. In order to confirm the authenticity of these complex carbohydrates, analytical chemistry methodologies have been developed. Typical examples of techniques are listed in Figure 4. 149 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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Figure 4. Carbohydrate analytical applications being done by V-LABS, INC.

Many preparative or semi-preparative carbohydrate applications have been done over the years by the laboratory (2). These include mass balance or proximate analyses of biomass sources for applications in sustainable bioenergy developments (3). Among many other preparative isolations of nutraceutical polysaccharides, very notable is the immunopotentiating agent, yeast ß-1,3 1,6-glucan, carried out at V-LABS in industrial development as well as for its purification on large scale. The yeast beta-glucan must meet rigorous specifications for analytical values and microbiology as a GRAS nutritional supplement.

Interactions of Carbohydrate Stereochemistry in Molecular Systems Biological information from the many asymmetrical carbohydrate structures through ordered interaction with specific binding sites within organisms is the vast subject matter of the emerging field of glycomics. Essentially, the complex stereochemistry and branched carbohydrate arrays on the protein backbones give a further definition to the protein structure with unique sequences of carbohydrate linkages (Figure 5).

Figure 5. Carbohydrate asymmetrical stereochemical priorities. 150 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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Such molecular carbohydrate information in the life sciences is studied through glycobiology and is researched and unified through the broader field of glycomics. Initially, understanding of the chemical basis of the genetic code permitted an eventual development of the science of genomics. After elucidating the translation of the DNA genetic code to functional, unique, homogeneous protein structures, it was found that these molecules nearly all undergo co- or post-translational modification with carbohydrates and other groups for various reasons. The resulting protein-carbohydrate composition determines many kinds of inter- and intracellular signaling for their appropriate recognition on cell or organelle surfaces through their carbohydrate structures. V-LABS has provided hundreds of these cell surface recognition factor carbohydrate arrays to researchers. It has taken thirty-seven years to fill this niche. Examples of Blood Group A oligosaccharides are shown in Figure 6.

Figure 6. Carbohydrate recognition factors of Blood Group Substance A.

An International Business Bond Is Formed Our association with Dextra Laboratories, Reading, U.K., began in 1990, twenty-five years ago. In order to formalize the business, international agreements have been made with the parent firm, New Zealand Pharmaceuticals and Dextra Laboratories to distribute biologically active cell surface recognition molecules as very high quality chemical compounds. The following discussion illustrates the kind of complex chemistry to which our compounds are applied. 151 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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The central focusing site for collecting, cataloging, certification, storage, and distribution of these compounds is at Earley Gate, Whiteknights, Reading, UK. In addition to making many compounds there or through the New Zealand Pharmaceuticals home laboratory a network has been established worldwide for the synthesis and procurement of a steady supply of the compounds from fine carbohydrate organic chemical laboratories. Dextra handles organization and distribution of these compounds. All of the final analytical work is done at the Dextra Laboratories in Reading, UK (Figure 7). It cannot be emphasized enough that the quantities of these highly purified synthetic or isolated oligosaccharides are most often in the milligram to microgram scale. To ensure very high quality of each product is costly and a single order of a compound may run from hundreds to over a thousand dollars. In addition to compositional and elemental analyses, all of the compounds V-LABS distribute (Figure 8) are certified by complex analytical chemistry such as chromatography, MALDI-TOF mass spectra, and nuclear magnetic resonance spectroscopy to the customers. There are now more than seven hundred fifty compounds in the Dextra catalog which we distribute in North and South America. Most of the glycobiology and biochemistry industries depend on the availability of these well-defined molecules.

Figure 7. Oligosaccharide source of supply through the Dextra Laboratories network. The process of networking is intrinsic to the sharing of our experiences in our field. The intellectual boundaries of our product service must continuously be revisited. In his excellent chapter on the nexus of creativity, innovation and entrepreneurship in the global enterprise, Sadiq Shah has discussed the necessity for cross-disciplinary exchange (4). Although his chapter is more detailed than can be discussed here in the context of the V-LABS, INC, many of the marketing creativity concepts Shah describes have been essential to building our marketplace. The unique service made available to the industries in need of the products which we market has required much creative thought and interaction research. In our business as a chemical laboratory owner and manager we continually reach out to scientists as customers. Our daily orders are from the major biomedical and chemistry research centers at the National Institutes of Health, the research medical schools such as Harvard, Johns-Hopkins, Stanford, 152 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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Northwestern, Minnesota, University of California in San Francisco, and many others. Other institutes such as Scripps and the Center for Disease Control and Prevention also have need for these compounds. V-LABS has always had regular customers in Canada and are working to increase customers in Latin America. As a key US contact point for Dextra, V-LABS provides cost saving advice to glycobiology researchers. We spend much of our time on the telephone consulting with clients over fundamental carbohydrate chemistry and associated reactivity of compounds for cutting-edge carbohydrate investigation and research. Our business also manages foreign currency exchanges, service agreements, and shipping charges for all purchases. We represent Dextra to US- based clients and make it our business to have literature available at the American Chemical Society meetings as well as related organizations such as The Glycobiology Society. Maintaining a product website with algorithms that can handle daily pricing changes and shopping cart convenience (Figure 9) is our top priority. In addition to the on-line interactive catalog, V-LABS, INC., emphasizes Dextra’s custom synthesis service of high cGMP quality as well as ISO 9002 certification.

Figure 8. Carbohydrates and products available in the V-LABS and Dextra catalog listing, www.v-labs.com (accessed Feb 10, 2016).

Figure 9. On-line catalog selection of carbohydrate products from V-LABS, INC. 153 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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In our daily business at V-LABS we take orders from our customers through our website listing as they log in with their credit card number on the selected order (Figure 10). We also accept purchase orders through postal mail, e-mail or FAX. We, in turn, send this order as our V-LABS purchase to Dextra in England who then package the compounds with all necessary documents for express shipment to the U.S. Upon arrival in the US, all shipments are subject to US Customs and FDA approval in processing. The complicated paperwork and changing personnel in the US Customs and FDA Offices can be a challenge for independent research chemists.

Figure 10. Sequence of operations for processing a product order at V-LABS.

V-LABS remains on top of changing international market systems to streamline government regulation or clearance obstacles (Figure 11). Once an order is in place with Dextra, the turnaround time is typically one week. Independent researchers can run into delays associated with backlogs, paperwork, and inventory estimates. V-LABS has the experience to streamline this process. Thousands of our samples have been delivered via United Parcel Service and Federal Express. Customer invoices are processed through V-LABS to cover final international banking account payments to Dextra for samples and shipping.

Figure 11. Processing of orders through operational business channels. 154 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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Problematic aspects of doing international business on a far-flung global base is that at our end of the transactions V-LABS has very little control over the supply line of products coming from producing companies to the Dextra Laboratories collection. This reflects in the almost speculative nature of the projected delivery dates of compound through which the customer contracts for purchase. Although chancy, more often than not something is worked out and most of the products are eventually delivered. Eventual payment must be made through a two-fold money transaction, first by payment by the customers to V-LABS and then at another pricing schedule of V-LABS to Dextra in the UK. This arrangement also does present banking problems between the two countries involved. In Figure 12 some of the difficulties of doing currency accounting in a global entrepreneur situation are described.

Figure 12. Doing business on a day-to-day basis in international commerce.

The relative profitability of maintaining an international marketing position is sometimes more difficult to predict. Markers that have been beneficial to us are web-site “hits” on a per-month basis and traffic of weekly orders coming in. These are enumerated in Figure 13 as concluding observations.

Figure 13. Indicators of interest in the V-LABS products marketing and volume of sales. 155 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

In line with the ideas of Shah (4) we have identified a needed service and marketing approach which makes available these very rare and needed carbohydrate derivatives to the biomedical and biotechnology community. We attempt to make a smooth flow of these products to the clients even with the challenges enumerated above in managing the long-range global distribution. We also wish to ensure sparking new ideas through the prompting of creative concepts that these molecular building blocks may suggest.

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Conclusions There are many opportunities for small chemical businesses to fill a niche such as we have followed through the years. The industries need steady supply lines of rare raw materials such as we sell. The global bridging of the needs to the biomedical or pharmaceutical researchers through importation of otherwise unavailable rare chemical compounds is a dedication that we have made over the years. We do appreciate Dr. Diane Grob-Schmidt inviting us to share our very enjoyable years at V-LABS with the readers. We would welcome further discussion with our colleagues and customers via our web site. Our web site with company history, services offered, and compound listings are at www.v-labs.com.

References 1.

2.

3. 4.

Vercellotti, S. V.; Vercellotti, J. R. In Careers, Entrepreneurship, and Diversity: Challenges and Opportunities in the Global Chemistry Enterprise; Cheng, H. N., Shah, S., Wu, M. L., Eds.; ACS Symposium Series 1169; American Chemical Society: Washington, DC, 2014; Chapter 18. Vercellotti, J. R.; Vercellotti, S. V.; Kahn, G.; Eggleston, G. In Sustainability of the Sugar and Sugar−Ethanol Industries; Eggleston, G., Ed.; ACS Symposium Series 1058; American Chemical Society: Washington, DC, 2010; Chapter 12. Vercellotti, J. R.; Clarke, M. A.; Godshall, M. A.; Blanco, R. S.; Patout, W. S., III; Florence, R. A. Zuckerindustrie (Berlin, Ger.) 1998, 123, 736–745. Shah, S. In Careers, Entrepreneurship, and Diversity: Challenges and Opportunities in the Global Chemistry Enterprise; Cheng, H. N., Shah, S., Wu, M. L., Eds.; ACS Symposium Series 1169; American Chemical Society: Washington, DC, 2014; Chapter 14.

156 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

Chapter 18

International Prototype Development

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Daniel Daly* Director, AIME, University of Alabama, 720 2nd Street, Tuscaloosa, Alabama 35401, United States *E-mail: [email protected].

The Alabama Innovation and Mentoring of Entrepreneur (AIME) Center has had success in instructing students, professors and staff on the formation of start-up companies. Through this process, we have observed that developing Minimal Viable Products (MVP) and turning them into testable prototypes is a milestone in the commercialization of the invention. This iterative process of developing MVP helps solidify the value proposition, which is extremely important in presenting the product(s) to potential partners and customers. In conjunction with the customer discovery class, based on the Lean Launch Pad model, AIME and the start-up companies in our business incubator have been successful in partnering with international companies. These collaborations help the new companies expand their product offerings at a minimal cost, since the international industrial partners are interested in sharing these developmental and testing costs.

Introduction More startup companies fail from a lack of customers than from a failure of product development. This issue is particularly important for chemists. On the whole, chemists tend to be good problem-solvers and are able to create good products. However, chemists often scratch an itch in the wrong part of the back.” In other words, they have trouble attracting customers to their products. At the National Science Foundation (NSF), there is a program called the Innovation Corps, or I-Corps (1). Through the sponsorship of this program, roughly twenty I-Corps sites are currently dispersed around the United States. © 2016 American Chemical Society Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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These centers, along with the ACS Entrepreneur Resource Center (2), are designed to provide assistance to chemists looking to turn their inventions and ideas into a business. The Alabama Innovation and Mentoring of Entrepreneur (AIME) Center (3) has had success in instructing students, professors and staff on the formation of start-up companies. The goal of our center is to assess prototype(s) in an industrial setting using sensitive tests. By offering this service to inventors we will be able to help them measure the performance of their product(s) in the competitive market and establish a base value for their production costs. Many startup companies in our business incubator have found international partners interested in footing the cost of product development and testing, which results in more affordable product(s).

Product Development Starting a business is similar to conducting a science experiment. First, you have to identify a problem. Then you need to formulate a hypothesis about your product’s ability to solve your customers’ problem. Finally, you have to communicate with customers to learn whether your hypothesis is correct.

The Value Proposition A value proposition is an innovation, service, or feature intended to make a company or product attractive to customers. It can be challenging to talk to customers about your hypothesis without informing them about your produce and service. This notion can often be difficult for scientists to get their head around. Many scientists need training to learn how not to tell customers what their product or service really is. This is difficult because the product or service is typically the first subject they want to talk about. It’s important to remember that the goal is to learn what customers need and then provide a product that satisfies this need. Once you and your team have established connections with customers, these relationships need to be cultivated in order to have an open dialogue about customers’ needs. Through this dialogue, the development team can then go back to the product and make adjustments that meet those needs. This process brings customers into the loop as unsuspecting consultants, who help design the product to fit their own needs. If the customers desire attributes that your product lacks you should add these attributes to the product. If you don’t take these steps, customers won’t be interested in your product(s). While this may sounds simple, it does take discipline to follow these important steps. When creating a value proposition, you want to adjust your product(s) and services through a minimum viable product (MVP), so that you are creating gains and solving problems at the same time. The concept of an MVP will be a recurring theme throughout this paper. 158 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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The Customer Segment When you talk to customers about your product(s), you will learn that each one has a different job - the chief operating officer, the person in product development, the bench chemist, etc. Once you have identified your customer segment, you need to take this information and apply it to your business model to make sure that your product is a good fit for the targeted market. For example, when I was working as a facilitator at the ACS Entrepreneurial Research Center, the Center was conducting a training program. There was a young inventor who had developed SnapFit and wanted to sell her product to bench chemists. However, the value proposition, or the “pain” that she was solving, was related to the setup time. While chemists are interested in setup procedures, lab managers are the ones who really feel that pain because they need to spend more money when it takes three hours to set up a reaction instead of one. As a result, this inventor had to change her product pitch and direct it toward lab managers instead of bench chemists, even though her invention was designed to help bench chemists. Customer Development Once you know what your customer segment wants, you can start forming an MVP - the bare bones of your invention. Then you can share it with customers to get feedback. However, the first product should be non-enabling. That is you demonstrate the essence of the invention without telling them how to create it. This can be done in person or by video. You don’t need to worry about intellectual property until you share your minimum working prototype (MWP) - the “secret sauce” of your product - with customers. At that point, you will need to have them sign a confidentiality agreement. Technology Adoption Lifecycle The Rogers bell curve (4) provides insight into how customers adopt technology. According to the curve, the first 2.5% of adopters fall into the “innovators” category. These are the individuals who bring a product to market. Next come the “early adopters,” who represent 13.5% of the market and your initial profit opportunity. These are the people who purchase a product because they are inspired by the technology or the idea of it, and are, by and large, not concerned with what other people think. However, the bulk of the customers are in the “early majority” (34%) and the “late majority” (34%). These customers are more pragmatic with their purchases and represent the mass market. They are the people who will look at customer service reports, talk to other people, and buy products and services based on what other people think. Finally, there are the “laggards” at 16% of the market, who are the last consumers to adopt a technology. To demonstrate this concept, let us look at the electric car. The early adopters purchase electric vehicles as soon as they begin mass production. The early majority and late majority, however, base their purchases on reviews and 159 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

consumer reports and wait until there are charging stations throughout their state. By contrast, the laggards remain skeptical and likely not to adopt the technology until gas stations begin closing and fuel is more difficult to come by. This basic patter of consumerism also applies to start-up companies.

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The Earlyvangelist Once you have developed your MVP, it’s time to find an “earlyvangelist” someone who has thought about the problem and might have some extra money to invest in the project. This person is likely to be a lab manager, who is fairly innovative. After making contact with an earlyvangelist, you will want to share your MVP with that person. By examining your MVP, lab manager(s) can learn what you are developing and see the value in developing it further for their company and company projects.

Working Examples IOLITEC and MagnnPro IOLITEC (5), a company specializing in the production of ionic liquid technology (organic salts), won third place in a business competition put on by L-Bank. After winning, they contacted me and asked if they could incubate in our facility, which I allowed them to do. While incubating in our facility, IOLITEC also began exploring the production of nanotechnology materials. At that time, MagnnPro (6), another nanotechnology company, was also in the incubator. This was a one-man-show run by a graduate student who had developed the technology. The company was having trouble selling its iron oxide magnetic materials. Knowing these two companies, their interests, and the issues they were having, I encouraged them to get into business together. They then signed a distribution agreement for uniform iron oxide materials. IOLITEC had distribution channels and knew how to sell MagnnPro’s iron oxide. Plus, it had the quality assurance steps and necessary instrumentation that most startups lack. Ionic Liquid collaboration of the University of Alabama with BASF Initially, there was a MVP in which cellulose was treated with a solution of ionic liquid, making cellulose water-soluble. The process began by injecting the liquid on one end and resulted in solid fibers being pulled out on the other. Once the university had seen the process, they were interested in seeing whether the technology could be scaled up. Following the MVP, a slightly larger model was made to demonstrate its scalability. After seeing a second and larger demonstration, BASF developed an even larger-scale machine that was based on the same principles as the previous two, but that could be used to produce fibers on an industrial scale for commercialization. The fibers could be embedded with a range of materials. 160 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

This example highlights the importance of finding a partner who can help you scale up, especially when they see that the product has a business application.

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Neural Net Original Plan and Market In its original conception, the Neural Net was created to help the electricity micro grid and the smart grid. Employing a unique controller, the technology is able to even out the fluctuation in electricity generated from wind and solar so that it is grid-viable. It does this by drawing electricity from the wall and then controlling its output, which helps with longevity and reduces the wear. At the time, customers who were interested in solar energy were not very concerned about the fluctuation of energy generated through alternative means, since they had nearly given up on trying to sell the energy back to the grid. Instead, they had been storing it in batteries. As a result, it was difficult to find companies that were interested in making the alternatively generated energy grid viable or the resources to get it done. Finally, after consultations with a business consultant, the Neural Net creators realized that there were other industries outside of renewables that could use this technology. Having recognized controlling electricity from the grid as an input to their technology, they could modify the output, and would help with longevity and reduce the wear of most electric motors. In order to demonstrate this technology, the inverntor and his team created a model and a video to show to any potential earlyvangelists. This shows that you can create an MVP and not spend a fortune. Moreover, once you find your earlyvangelist, he or she will know what the majority of customers want and all the “bells and whistles” that will be needed before the public will really accept your product.

Final Remarks In conjunction with the ACS Entrepreneur Resource Center and the Tulane University I-Corps development site, a customer development program will be held in New Orleans during InformEx 2016. Teams of inventors will have the opportunity to talk with up to 500 customers. Once producers and customers have identified each other, they can use private conference rooms for more in-depth conversations. This event is a great way to find earlyvangelists. Many startup companies suffer from a lack of money, product development, knowledge of running a business, and contact with customers. Using MVPs to attract interest in your product is an important step in starting a business. We have found this process to be successful and encourage entrepreneurs to come to the NSF I-Corps Sites - Chemicals and Materials Customer Discover Program coinciding with InformEx 2016 (7) taking place at Tulane University. If you are interested, please visit our website (3) and talk to your local I-Corps site (1). If you work with them, they will assist you. With the right information and the right product, we will even pay for your travel and get you a free pass to InformEx, in addition to covering room and board. All the expenses will be covered by NSF. 161 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

References 1. 2.

3.

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4. 5. 6. 7.

National Science Foundation. NSF I-Corps; http://www.nsf.gov/news/ special_reports/i-corps/about.jsp (accessed February 2016). American Chemical Society. ACS Entrepreneur Resource Center; http:/ /www.acs.org/content/acs/en/careers/career-services/resourcecenter.html (accessed February 2016). The Alabama Innovation and Mentoring of Entrepreneur Center. Bama Technology Incubator; http://aime.ua.edu/BTI/index.html (accessed February 2016). Wikipedia. Diffusion of innovations (Rogers bell curve); https:// en.wikipedia.org/wiki/Diffusion_of_innovations (accessed February 2016). io·li·tec. http://www.iolitec-usa.com/ (accessed February 2016). Business Alabama. Upstart Startups; http://www.businessalabama.com/ Business-Alabama/May-2013/Upstart-Startups/ (accessed February 2016). InformEx. http://www.informex.com/ (accessed February 2016).

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Chapter 19

It’s a Competitive World out There: Factors for STEM Venture Success Publication Date (Web): August 17, 2016 | doi: 10.1021/bk-2016-1219.ch019

Judith C. Giordan* VP and Managing Directorecos ecosVC, Amherst, Massachusetts 01002, United States *E-mail: [email protected].

From necessity for supporting a family and community – as in Africa and Latin America - to developing new industries for large-scale economic growth and jobs - as in the US - the key drivers for venture development take on many faces. According to the GEDI Index, the US is the top country for entrepreneurs, especially women, yet other data show the large gaps between female and male entrepreneurial funding rates – across all categories – also in the US! For the American Chemical Society, of importance to our members and to us as a Society, are the factors that foster STEM innovators and innovation that underpin job creation and economic development, especially where chemistry plays the pivotal role. In this article, the author explores different factors for STEM venture success including the implications for STEM researchers who wish to become innovators or entrepreneurs, regardless of gender; the role of universities; and the role that existing corporations do and could play in fostering and commercializing market-inspired research especially in the all-important exit for new STEM ventures.

The Myth of Start Ups and Economic Growth Whether dealing with the desire for growth in United States or globally, a main motivation for starting businesses is our need for economic development and creating jobs (1). As chemists, we want to and have successfully used this economic driver as a basis for translating our discoveries into market solutions to © 2016 American Chemical Society Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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solve global challenges, and in the process have built one of the largest engines for economic growth, jobs and progress – the global chemical enterprise. Yet, as hiring in the chemical enterprise slows and startups proliferate, is the argument for entrepreneurship and start-ups as key drivers for economic growth and jobs worth exploring?. According to Scott Shane, the answer is no. Government incentives for startups do not work and concepts for creating entrepreneurship do not function very well (2). Are startups engines for growth? In the United States, the correlation across industries between start-up rates and failure rates is a whopping 0.77 out of one. Shane attributes this low success rate to various factors including the government disproportionately stimulating more people to start new companies in industries with lower barriers to entry which are often more competitive thereby leading to higher rates of failure. Shane contends the average entrepreneur, who often selects what s/he perceives to be the easiest industry to break into without appropriate market data, reinforces this higher failure rates. The key, therefore, when considering the path to entrepreneurship, is to decide why you want to be an entrepreneur, what it is that motivates you to start a company, does the market care about what you are proposing to offer and can this build jobs? The profile for start-ups in the United States might be no. In the United States an average startup is capitalized with roughly $25,000 of the founder’s personal savings. These start-ups tend to operate in retail or personal services, are homebased businesses, and aspire to generate around $100,000 in revenue in a five-year period (3). Therefore, these new businesses do not constitute a large portion of jobs in the United States. According to the Marion Ewing Kauffman Foundation (4), newly formed companies were responsible for roughly 3% of all U.S. jobs in 2005 decreasing by 2008 to approximately 2%. In either case, this places the United States towards the middle of the bottom of the Organization of Economic Co-operation and Development (OECD) rankings. An additional issue with assessing employment in the start-up sector is redundancies that may not explicitly be taken into account. For example, if a start-up employing four people goes under after three days of being open, but these four individuals go on to be employed elsewhere, they will be counted twice, because while eight jobs have been filled in actuality only four people have found employment. Yet despite these statistics, stories of wildly successful start-ups embodied in the lore of ventures such as internet search giant Google or the biotechnology firm Genentech are common and fuel dreams of great success. So, surely, these companies must have contributed to economic growth? Yes, they did. But these are not typical growth companies and their founders are not typical entrepreneurs! What are the types of entrepreneurs that make all the “big things” happen, and do we really need them? YES! So-called “High-Impact Entrepreneurs” are the individuals who launch and lead companies with above-average impact in terms of job creation, wealth creation, and the development of entrepreneurial role models. Yet creating them and their mega successes is elusive. So how can we create greater success rates than we have even if not all entrepreneurs and startups become the next Google? 164 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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Technology Commercialization, Startups, and Economic Development While there are no clear cut answers for creating high-impact entrepreneurs, creating an impact and realizing the broad based economic and societal impact chemists want to provide with science based startup requires an evolved mindset for 21st century chemist. It requires us all to embrace a new role – that of an innovator. Someone who a) is grounded in the science, b) has the skills to define market requirements and to translate them into actionable and deliverable innovations - scientific results which address defined market needs - and c) is able to effectively communicate. Economic development from technology startups requires scientists to know how markets are structured and how value is built – not simply assuming to have a great idea and believing someone must want to buy it. To ensure success at this evolved role for scientists and startups, universities and companies need to evolve their roles, as well. Universities need to enable and reward researchers to gain the skills to conduct market-informed basic research. While researchers in companies gain these skills, universities can better prepare students for these roles during the undergraduate and graduate education process. Further, universities would also do well to differentiate clearly between innovation and invention and how they wish to utilize, reward and recognize each. Patents should be submitted only to support the invention’s potential for providing market value. Therefore, in academe as in business, research aligned with market requirements and patent portfolios and aligned with business need should be the rule rather than using patenting only as a metric for promotion or tenure. This means universities need ecosystems capable of producing market analysis. Even if the universities are already doing it, the technology transfer office cannot do it alone, so it is up to the scientists to assist in conducting valid market analysis, thereby ensuring that nothing of the innovation gets lost in translation. Furthermore, conducting the market analysis in parallel with research can act as yet another means for informing basic research. This parallel market analysis and basic research enables more rapid and cost effective research towards innovation translation and societal impact. In order for the startup ecosystem to thrive in the chemical enterprise, companies must commit themselves to actively participating. Actions can include aiding in providing market data, investing in startups and evolving more robust mechanisms for acquiring startups as part of strategies for R&D and growth. Data from A.T. Kearney showed that over the period 1999-2011 pharmaceutical companies nearly doubled internal R&D at the same time startups doubled in number, yet the number of successful products did not follow suit (5). Therefore companies might do well to focus on their competencies in applied research, manufacturing and commercialization and support the basic research and proof-of-concept from a startup. The chemical industry may face even greater challenges for new products and innovation in an era of corporate consolidation. This could bode well for corporate investments in startups as a more cost effective way to increase growth and broaden product pipelines.

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Key Decisions for Researchers What does this mean for the role of scientists? As scientists, if we want to embrace the role of innovators, and perhaps even as entrepreneurs, we need to acknowledge the process of innovation – providing scientific solutions to market challenges - as an additional role beyond that of curiosity driven research. We must gain skills as the basis for deciding whether or not to accept this extended role, including the ability to determine if there a real market need for our research; determining whether you – or anyone else - has the solution to the market need; and determining the revenue and market potential and whether this is a high growth or a lifestyle business (That $100,000/annum example? That is a lifestyle business.). We must be committed to honestly determining what will be required to get to market, and whether we have a team that can take the innovation to market based on a credible business plan. Further, you need to determine why you are embracing the role of innovator. Is it to demonstrate capability and interest primarily through winning a business plan competition? Business plan competitions are fun, but they are not the end game. The end game is selling product at a price that the market will pay that solves a problem better than anyone else. As chemists, we need to accept that the act of science commercialization is separate from doing science. Science can be very dispassionate—the reaction either worked or not. But how you sell the innovation or position it in the marketplace is a completely human and subjective endeavor. Being an entrepreneur requires you to embrace both of these pieces. You can be trained and gain skills and vocabulary to be an entrepreneur, but whether you personally can do the range of work required to be an entrepreneur, and feel comfortable doing it, is a different story. If you feel that commercializing technology or being an entrepreneur is your calling, go for it! If you would prefer to work within a company and gain phenomenal skills that will make it easier for you to do great things in the future, there should be no regret in this decision versus your own start up. Innovation and commercialization in the context of either big or small companies is important. This is because true innovation comes from knowing market-validated sets of needs, responding to those needs and providing solutions to important challenges – not company size. Ultimately, only you can determine whether the role of an innovator or entrepreneur is something you really want to do and whether this is the right time in your life for that commitment.

Funding You have decided! You’re building a venture. But it takes more than hard work. Where will you find funding? Many academic researchers first think of venture capital. It is a term used so frequently that it has become synonymous with startups. But it is not a wise decision to expect venture capital to be your key or sole path to success. Recent data show that venture dollars are invested more heavily in software with low capital investments than into larger scale product 166 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

based ventures. While angel investors are an excellent option, data show angels primarily fund what they know so you will have to find an angel or angel group with expertise in your field. What about corporate funders? As sale to a larger company, not an IPO, is the single largest exit for startups, finding larger companies aligned in your market is key for both potential funding and sale. And there is no time like the present to network with companies in your market! Investment in you may be a cost effective solution to shrinking corporate product pipelines. Conducting more research does not necessarily mean that a corporation will produce more products.

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Conclusion What does all of this mean? Commercializing science is not easy, but we as scientists and chemists have a track record of successfully creating products and processes that have changed the world. To build a start up in science means that you need to be good at what you do – excellent in research while embracing a broader role of innovator by acquiring skills to inform your research based on market need and the ability to communicate, negotiate and lead.

References 1. 2.

3. 4. 5.

Glen Entrepreneurship Monitor. http://www.gemconsortium.org/docs/ download/3616 (accessed on July 30, 2015). Shane, S. A. A General Theory of Entrepreneurship: The Individualopportunity Nexus; Edward Elgar Publishing: Northamptom, MA, 2003, and references therein. The Global Entrepreneurship and Development Institute. http://thegedi.org/ research/gedi-index/ (accessed on July 30, 2015). Ewing Marion Kauffman Foundation. http://www.kauffman.org/ (accessed on July 30, 2015). ATKearney. Unleashing Pharma from the R&D Value Chain; www.atkearney.com/paper/-/asset_publisher/dVxv4Hz2h8bS/content/ unleashing-pharma-from-the-r-d-value-chain/10192 (accessed on July 30, 2015).

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Editors’ Biographies

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H. N. Cheng H. N. Cheng (Ph.D., University of Illinois) is currently a research chemist at Southern Regional Research Center of the U.S. Department of Agriculture in New Orleans, where he works on projects involving improved utilization of commodity agricultural materials, green chemistry, and polymer reactions. Prior to 2009 he was with Hercules Incorporated where he was involved (at various times) with new product development, team and project leadership, new business evaluation, and analytical research. Over the years, his research interests have included NMR spectroscopy, polymer characterization, biocatalysis, functional foods, pulp and paper technology, and green polymer chemistry. He is an ACS Fellow and a POLY Fellow and has authored or co-authored 206 papers, 25 patent publications, co-edited 13 books, and organized or co-organized 28 symposia at national ACS meetings since 2003. He was the Chair of ACS International Activities Committee in 2013-2015.

Agnes M. Rimando Agnes M. Rimando (Ph.D., University of Illinois) is a research chemist at Natural Products Utilization Research at U.S. Department of Agriculture in Oxford, Mississippi, where she works on health-promoting bioactives and biobased pesticides from medicinal and herbal crops. She is widely recognized for her discovery of pterostilbene in blueberries. She garnered a number of awards, including ACS Spencer award (2016), ACS Fellow (2014), AGFD Fellow (2014), Federal Laboratory Consortium Excellence in Technology Transfer award (2014), University of the Philippines College of Pharmacy Outstanding Alumni (2011), and USDA ARS Mid South Area Senior Scientist of the Year (2009). She has served on the International Activities Committee since 2011 and is currently the Chair of the Subcommittee on Asia and the Pacific Basin. She has authored 164 papers including 10 patent publications. Six patents on pterostilbene have been licensed, resulting in 40+ products currently on the market.

Bradley D. Miller Bradley D. Miller (Ph.D., University of Arizona) is the ACS Chief International Officer and Director of ACS Office of International Activities. He has worked for ACS since 1999, developing programs, products, and services to advance chemical sciences through collaborations worldwide. He works with ACS staff and different governance units to create opportunities for chemistry to © 2016 American Chemical Society Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

address global challenges through in-person and web-based scientific network development, research collaborations, and educational exchange. Miller serves on the U.S. National Commission for UNESCO and in 2009 was appointed to co-chair the ACS 2011 International Year of Chemistry Staff Working Group. He is also the long-time ACS staff liaison to the ACS International Activities Committee. A world traveler and an internationalist, he speaks English, French, Spanish and Portuguese.

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Diane Grob Schmidt Diane Grob Schmidt (Ph.D., University of Cincinnati), the 2015 ACS President, was an Executive at The Procter & Gamble Company, where she served as a R&D Section Head for 17 years. Her P&G career spanned 1981-2014 during which she played key roles in such brands as Tide®, Head & Shoulders®, Pert Plus® and Safeguard®. Dr. Schmidt had responsibility for health, safety and environment, and regulatory affairs before retiring from P&G in 2014. She is currently an Adjunct Professor in the Department of Chemistry at the University of Cincinnati. She is the inventor or co-inventor on myriad patents, in addition to author or co-author on chemistry publications in refereed journals. She has received many awards, including ACS Fellow, Fellow of the Division of Chemical Health & Safety, Henry Hill Award, and Distinguished Scientist of Cincinnati (first woman so honored). She has served on the editorial boards of the Journal of the Society of Cosmetic Chemists and the Journal of Chemical Health & Safety. She has been an ACS member since 1968 and held a wide variety of leadership positions, including three consecutive terms on the Board of Directors. As 2015 ACS President, her Presidential theme was “Inspiring and Innovating for Tomorrow”. Her legacy as ACS President includes: U.S. and Global Grand Challenges via impactful programming (Nanotechnology, Energy, BRAIN Initiative/Chemical Measurements/Neuroscience/Chemical Neurotransmission), championing the establishment of the American Association of Chemistry Teachers (AACT), advocacy on behalf of ACS members and focus on industry and industrial ACS members.

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Subject Index

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B Brazil, knowledge-intensive business services, 123 Brazilian pharmaceutical industry, history evolution and growth, 124 industrial development, 125 spin-off in Brazil, perspectives, 125 current situations, 129 Lychnoflora, knowledge-intensive services, 128 anti-inflammatory drug development, 129 Lychnofloram, overview company structure, 126 revenue, 127 spin-off growth, summary, 126 Lychnofloram, product development Brazilian agribusiness, 128 Leishmaniasis treatment, 127 overview, 127

C Chemistry entrepreneur, brief guide, 91 business idea, assess, 95 business plan, 95 Lean LaunchPad, key elements, 96 Steve Blank, Lean LaunchPad, 97f chemistry entrepreneurs, from academia to industry, 92 challenge-solution approach, 93f communication, indispensable key skill, 97 companies fail, reasons, 94 company, finance, 102 chemical company, financial life cycle, 103f customers, approach, 98 business model, refinement strategy, 98f entrepreneurship project, life cycle, 100 efficient patent strategy, development, 101 life cycle of a chemical company, example, 101f Eureka moment, birth of the business idea, 92 fundraising, 102

patents, useful tool, 99 rivals, disclose, 99 Rive Technology, case study company evolution, 106 energy sector, Rive Technology, 106f molecular highway technology, 104 Rive’s proposed product solution, 105f successful business idea, key factors, 93 Chemistry student to chemical entrepreneur, 137 chemical entrepreneurs versus computer scientists, 138 ChromaDex, an overview international markets, 143 public company CEO, life, 143 unique business model, 142 ChromaDex, introduction, 138 science and chemistry, impact of innovation and entrepreneurship, 141 what needs to be done entrepreneurship, incubators lower barriers, 140 founders and joiners, 140 success brings success, 139 undergraduate programs, 139 Chemistry-related transnational mobility ACS international center, 20 design and long-term view, 21f demand, global skills, 20 global research trends, 17 number of science and engineering researchers, average annual growth, 19f science and engineering articles, share, 19f United States, EU and 10 Asian economies, R&D expenditures, 18f Curriculum, chemistry in global economy, 23 big ten universities, observations, 28 global dimension in higher education, importance, 26 international collaborations current status, 24 employment sector, U.S. scientists and engineers, 25f international research collaboration, benefits, 26 U.S. doctoral-degreed chemists, % of international collaboration, 25f Purdue University, observations, 27

175 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

global organization, business and research models, 39f innovation, 38 innovation approaches, 38f

today’s global economy, workplace, 24

D

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Diplomacy and global relations, science, 49 diplomacy, role of scientists and engineers, 53 global collaborations, 51 global leadership competencies, 51 global management leaders, 52 introduction, 50 OPCW/ACS collaboration, 54 science and government, 50

G Global small chemical business, development carbohydrate stereochemistry, interactions, 150 blood group substance A, carbohydrate recognition factors, 151f carbohydrate asymmetrical stereochemical priorities, 150f international business bond, 151 carbohydrate products from V-LABS, Inc., on-line catalog selection, 153f international commerce, business on a day-to-day basis, 155f operational business channels, processing of orders, 154f product order at V-LABS, sequence of operations, 154f supply through the Dextra Laboratories, oligosaccharide source, 152f V-LABS and Dextra catalog listing, carbohydrates and products available, 153f V-LABS products marketing, indicators of interest, 155f establishment of the business, economics, 148f V-LABS, Inc., carbohydrate analytical applications, 150f V-LABS, Inc., cost accounting, 149f water soluble polysaccharides, processing, 149f Global technical workforce American Chemical Society (ACS), 40 globalization, 38

I Interdisciplinary relationships, 21st century global workforce, 43 interdisciplinary toolkit, 44 Ei-ichi Negichi, 47 ABC DIRT, 45 Purdue University, Suzanne Bart, 46 international education and exchange, bibliography, 77 International entrepreneurship entrepreneurship, 118 process, 119 resources, 119 team and teamwork, 119 pharma R&D models conventional R&D model, 119 evolving R&D model, 120 Sphaera Pharma, 121 Sphaera Pharma, highlights, 121f International prototype development final remarks, 161 product development customer development, 159 customer segment, 159 earlyvangelist, 160 technology adoption lifecycle, 159 value proposition, 158 working examples IOLITEC and MagnnPro, 160 neural net original plan, 161 University of Alabama, ionic liquid collaboration, 160

O Overview, chemistry without borders, 1 international activities, ACS, 6 global alliances, 10 global grants, 9 international chemical sciences chapters, 10 international outreach, 8 international symposia, 9 research opportunities, 7 international entrepreneurship, 4 transnational study, 2

176 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.

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S

U

STEM venture success, factors economic growth, myth, 163 funding, 166 researchers, key decisions, 166 technology commercialization, 165 Sustainable generic pharmaceutical model, 131 affordability, access to medications, 135 affordable medicine, quest, 133 future, 136 global pharmaceutical industry, background, 132 Indian pharma industry SWOT analysis, 134 Indian pharmaceutical industry, 133 innovation and entrepreneurship, 135

U.S./Taiwan/China, how to start a business, 109 ScinoPharm, personal observations, 114 ScinoPharm, success factors founding team, strong commitment, 112 global market, local resources, 111 global operation standards, 113 investment in people, 113 project management standards, 113

W

T Tianjin University, demo project, 31 introduction School of Pharmaceutical Science and Technology (SPST), 32 SPST building, part, 33f Tianjin University, 32 SPST, internationalization, 33 international student exchange, 34 internationalized scientific platform, 35 Translating university research, lessons academic entrepreneurship, benefits, 89 convergence, 88 innovator’s dilemma, Clay Christensen, 88

Water, global issues complete water cycle, management, 59 community response, Tanzania, 60 Njoro community water project, 61 public outreach and education, 60 future of water, 69 60 properties, water, 71 lessons learned, 70 global water challenge, 57 story of four taps, Singapore, 58 water innovation, 62 access to adequate safe water, eight factors, 63t MOOCs, power of education, 64 water innovation grid, 63 water treatment, innovations, 65 membrane technology, 66 new opportunities, water–energy nexus, 69 R&D, 67

177 Cheng et al.; Chemistry without Borders: Careers, Research, and Entrepreneurship ACS Symposium Series; American Chemical Society: Washington, DC, 2016.