| Literature DB >> 21144078 |
Justin Chakma1, Hassan Masum, Peter A Singer.
Abstract
BACKGROUND: Incubators are organizations that support the growth of new and typically technology-based enterprises, by providing business support services that bring together human and financial capital. Although the traditional role of incubators has been for economic development, they may also be a useful policy lever to tackle global health, by fostering the development and delivery of local health innovation.Given its high disease burden, life sciences incubators hold particular potential for Africa. As the most industrially advanced African nation, South Africa serves as a litmus test for identifying effective incubator policies. The case study method was used to illustrate how one such publicly funded incubator founded in 2002, Acorn Technologies, helped to catalyze local health product innovation. DISCUSSION: Acorn helped to support twelve biomedical device firms. One of them, Real World Diagnostics, was founded by a trainee from Acorn's innovative internship program (Hellfire). It developed rapid strip diagnostic tests for locally prevalent diseases including schistosomiasis and HIV, and reported $2 million (USD) in revenue in 2009.Acorn achieved this success by operating as a non-profit virtual incubator with little physical infrastructure. Employing a virtual model in combination with stringent selection criteria of capital efficiency for clients proved to be effective in reducing its own fixed costs. Acorn focused on entrepreneurship training and networking, both critical at an early stage in an environment dominated by multinational biomedical device companies.Acorn and its clients learned that employing a cross-subsidy business model allowed one to generate royalty revenue through imports to subsidize R&D for local diseases. However, funding constraints and government expectations for rapid self-sustainability forced Acorn to merge with its sister biotechnology incubator in 2009.Entities:
Year: 2010 PMID: 21144078 PMCID: PMC3001615 DOI: 10.1186/1472-698X-10-S1-S7
Source DB: PubMed Journal: BMC Int Health Hum Rights ISSN: 1472-698X
History of Acorn Technologies
| Year | Event |
|---|---|
| South African government asks a consortium comprising a venture capital firm, a university tech transfer office, a university’s biomedical engineering department and a successful biomedical device company to start Acorn. | |
| Acorn Technologies is incorporated as a section 21 not-for-profit organization and receives initial grant funding for three years from the Department of Trade and Industry, Department of Science and Technology and the European Union.South African government releases a set of recommendations in the report “A National Biotechnology Strategy for South Africa” including the creation of biotech incubators | |
| Department of Science and Technology withdraws from Acorn Technologies in order to focus on creating biotechnology regional innovation incubators, including Cape Biotech Trust | |
| Acorn launches its first and only run of its successful Hellfire internship program to identify potential scientists and train them to be entrepreneurs. The program closes afterwards due to lack of funding. | |
| Acorn, Cape Biotech Trust and the Medical Research Council sign a memorandum agreeing to work more closely together and form the “Kopano” partnership to facilitate technology commercialization | |
| Acorn approaches Cape Biotech Trust to discuss merging and secures funding for medical device projects from the Department of Science and Technology. Merger is completed by the end of the year. | |
| Medical Device Center of Competence is created by the South African government within Cape Biotech Trust to maintain biomedical device support services |
Acorn’s Portfolio of Incubatees
| Company Name | Type of Company | Target Market/Product |
|---|---|---|
| Gknowmix | Genomics | Genetic Testing and Counselling |
| Biovac Institute (from CBT) | Non-Profit Vaccines | Vaccines |
| Pointcare Technologies | Biomedical Devices | Diagnostics “Lab in Briefcase” for AIDS Therapy and Cardiac Arrest |
| One Eighty | Biomedical Device Consulting | Metallurgic Consulting Services for Biomedical Devices |
| SunBio (from CBT) | Molecular Biology | 3rd Generation Yeast Strains for Winemaking |
| Sinapi Biomedical | Biomedical Devices | Medical Devices for Thoracic Surgery |
| Real World Diagnostics | Biomedical Devices | Rapid Diagnostic Strip Tests |
| Elective Lifestyle | Insurance | Cosmetic Surgery |
| Femipap | Biomedical Devices | Medical Devices for Female Healthcare/Cervix Self-Sampling |
| Pin Sealer | Biomedical Devices | Negative Pressure Wound Therapy Device |
| Smart Surgicals | Biomedical Devices | Robotic System for Minimal Invasive Surgery |
| Surgical Consent | Medical Informatics | Online Consent Form Management |