Biotechnology Research and Development Investment Analysis

free essayThe Innova Bio-Tech Corporation Board of Directors has authorized $10 million additional budget for Research and Development over the next five years for accelerating innovation. The Board of Directors plans to uphold the company’s current patent rights and acquire additional protections because the current patents are due to expire in five years time. In addition, the company plans to maintain its market dominance, increase the profitability of midstream medical device products, and speed up academic research achievements geared towards viable clinical products.

The company is considering selecting optimum take-off actions from a number of alternatives, so as to maximize the achievement of its envisioned objectives. The alternatives shall spearhead great success and lead to the development of advanced medical equipments and enhancement of biotechnology. Consequently, the company shall be able to maintain is competitiveness and remain at the arch of the international biotechnology industry, as well as in South Eastern Asia. Unlike most industries, biotechnology is very competitive, and the survival of individual firms may depend on how unique and outstanding their innovations are. In regard to this, innovation for advanced medical equipment and biotechnology advancement settles at the heart of Research and Development strategies that the industry-related enterprises may consider (Kucklick, 2012).

The general objectives of Research and Development include:

  • Enhancement of advanced biotechnology standards and biomedical device development.
  • Ensure safety and efficiency of the newly developed medical devices.

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In order to facilitate the achievement of goals and empower the company to become a successful international leader in medical device innovation, the following strategies may be adopted:

1. Direct Investment in Research and Development

The company may plan to:

  • Investment in Research & Development for biomedical technology equipment by establishing a product-oriented innovation center of excellence for biomedical devices.
  • Employ talented scholars and scientists, so as to facilitate innovation and advanced medical device development.

Sponsoring strategic Research & Development projects such as:

  1. Research on Intelligent Fractional Laser Pigmentation Removal Instrument.
  2. Research on Biotechnology equipment on Endoscopic Therapy.
  3. Research on pneumatic tourniquet automatic pressure adjustment equipment.
  4. Research on development of the third generation Chitosan Conduit for peripheral regeneration of nerves.
  5. Research on development of thermal therapy on artificial prosthesis for tumors of the bone using bioactive ceramic coatings.
  6. Research on development of multi-frequency ultrasound scanning equipment.
  7. Research on innovation of a single pulse electromagnetic field for healing bones.
  8. Research on design and development of a Guiding Endoscope system using three-dimensional magnetism.
  9. Research on Molecular Nano tweezers.
  10. Research on Bloodless Surgical Resection using magnetic thermotherapy.

2. Indirect Investment in Biotechnology Equipment Research and Development

The company could plan to establish an integrated Research and Development platform for biotechnology equipment. The innovation plan could be built on the past research achievements, such as the Glucose Biosensor by Leland Clark, Nerve Action by Otto Loewi, Penicillin by Alexander Fleming, Cardiac Pacemaker by Wilson Greatbatch, and Synthetic Dyes by William Perkin. The initiative could be aimed at accelerating innovation of various surgical devices, such as orthopedic, plastic, maxillofacial, and dental surgery devices. Furthermore, the initiative could entail rehabilitation devices, biomedical imaging instruments and other related medical devices. Additionally, the company could organize symposiums where young creative scholars and research professionals in the biomedical industry could come together for sharing innovation ideas, and in the process, the company may “by accident” realize innovations.

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3. Entering into partnerships with other institutions for biotechnology equipment Research and Development

The company could plan to partner through corporate alliances for bridging medical centers, academic, and research institutions. The company could not only plan to fund collaborative academic and research initiatives in medical devices across the institution and hospital, but also provide an innovative medical technology environment in the process.

SWOT Analysis for Company as a Result of Embracing Various Strategies of Optimum Investment in Research and Development


  • The company is capable of employing skilled research professionals.
  • The company has a firm financial base.
  • The company has an already established innovative culture and leadership.
  • The company already has a strong market base in USA and other international market outlets.
  • The company has excellent research facilities and long experience in biotechnology industry.
  • The company has a strong management team.
  • The company enjoys economies of scale; hence, has cost advantage.
  • The company already offers unique products and services.
  • The company has customer loyalty especially in USA.


  • The company has a relatively weak brand name because of stiff competition.
  • The company has a high staff turnover.
  • The company has a weakly established R&D.
  • The company suffers some technical work inefficiencies.


  • The resultant innovations may lead to increased government taxes, patenting, and licensing costs.
  • The construction of the Excellence Center for innovation may be very expensive and may require more funds than the planned additional funds to the budget.
  • Stiff competition from other institutions from South Eastern Asia, including the Medical Device Innovation Center of the National Cheng Kung University in Taiwan.
  • Political risk of uncertainty of the American economy, as the pressure for a government shutdown increases.
  • Stiff competition from China’s biotechnology industry.
  • Unnecessary social pressure on the contemporary life of students and scholars may affect the expected outcome of innovation.


  • The global community health care programs seem to be growing, and thus, the global market for biomedical technology is anticipated to expand.
  • Increased managed care business is another opportunity for the company to venture into innovation advancement.
  • The ever-growing global metropolitan community provides an opportunity for increased demand for new technologies in biomedical equipment.
  • There is an international market expansion, and more markets are emerging; hence, offering enormous growth potential.
  • The need for new biomedical services requires expansion of services offered through innovation.
  • New services could increase the company revenue.
  • Further innovation could propel new product development; services and technology could differentiate the services offered by the company.

Relative Risk Analysis for Various R&D Investment Strategies There are several exposures that the company may be subjected to as a result of venturing into any of the strategies above.

The risks include:

  1. Establishing an Excellence Center may inhibit the company from adequately incorporating a global perspective for innovation and direct R&D investment.
  2. Theft of innovations; the company shall be engaged in an open innovation challenge if its investment strategy is indirect or enters into partnership with other institutions for R&D.

The Optimum Investment Strategy According to the above analysis, shall be advisable for the company to adopt the internal investment in Research and Development. The given alternative will enable the company to establish a continuous secure innovation culture within the organization, which will allow remaining at the top of the biotechnology industry.

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