10 QUESTIONS
With Michael Keating
 | | Biotech businessman Michael Keating is quick to note that his entire industry got its start with Moravian monk Gregor Mendel. |
By Frantisek Bouc
Staff Writer, The Prague Post
March 2, 2005
For over a year, U.S. businessman Michael Keating has been developing an ambitious project that should help bring more attention to biotechnology. Keating is trying to garner funding for opening a Web portal dedicated to biotechnology that would be accessible to both public and private initiatives.
What is the current state of the biotechnology industry in this country? Who are the main players and where is the industry likely to head?
There is a great tradition of biotechnology in the Czech Republic. Remember Gregor Mendel? Unfortunately, at present, this industry is very fragmented and there is not sufficient capital to develop high-tech start-ups. The major activities are taking place in universities and research labs, but external trade organizations such as CzechInvest and CzechTrade have not made it a priority.
• How do you find Czech companies' attitude toward biotechnology?
I think there is a lot of enthusiasm for biotechnology, but not a lot of mid- and long-term investment capital. If that situation doesn't change, the Czechs will find themselves always looking [on as through a] window and chasing small dollars in low-margin businesses such as call centers or contract manufacturing. The future for everyone is in intellectual property, not cheap labor.
• What are the opportunities for Czech biotechnology in the United States?
I know that contacts have been made by several Czech companies in the United States, but no major deals have been struck. On the other hand many big [pharmaceutical] companies have set up shop in the Czech Republic. That will be the game for now until there is more investment capital to develop the internal capacity. ... I believe, however, that U.S. investors would be interested in several developments that are taking place in Czech research labs.
• What is the BioCzech concept?
MICHAEL KEATING
• Job title: Founder, MJM Keating Co.; started BioCzech, a project focused on the biotech and
life-science industries
• Age: 55
• Nationality: American
• Previous work: Partner, Boston Consulting
• Education: Bachelor's degree in philosophy, finance training, Harvard University
• Family: Married, three children, two dogs (English setters) |
We have been working on [BioCzech] for over a year. It is simply a Web-based portal for the entire Czech biotech industry including private, public and government initiatives. Right now everyone is interested, but there is still the need for a brave soul to advance the major funding. It wouldn't be that expensive, but it would offer the whole world a window into the Czech Republic.
• What is your personal interest in the Czech Republic? Why have you focused your attention here?
My grandparents were from Moravia. I believe [this country] has the possibility to be a world leader in several areas, if the different factions could learn to work more cooperatively and if the spirit of entrepreneurship was taught in the universities. Why do you think places like MIT [Massachusetts Institute of Technology] and Harvard have been so successful at generating new business concepts and leading technologies?
• According to the emissions-trading system within the European Union, companies will be able to trade with emissions vouchers and, if they exceed emission limits, they can buy additional emissions vouchers from companies producing less emissions. Does this trading opportunity jeopardize efforts to lower emissions? Do you think it is ethical to buy opportunities to make more pollution?
Well, I was trained in philosophy so I am happy to address an ethical issue. I believe that if anything can keep pollution levels from growing, it is a good thing. I would just hate to see poorer countries being willing to sell vouchers so that rich countries can [generate more pollution]. That would be unethical, but we should expect something like that to occur.
• Speaking of pollution, does it make sense for other countries to stick to the Kyoto Protocol on reducing greenhouse gases when the United States tends to ignore this treaty?
Would it make sense for me to become a criminal because other people do it? I think the U.S. position on Kyoto is indefensible, and I am happy that others will ignore us and do what they think is right.
• Czech Parliament recently passed a bill on renewable energy guaranteeing regular power purchases from alternative power sources such as hydro-power plants or wind-power plants. Do you believe that a government dealing with excessive state budget deficits can afford such policies?
In the long run I don't think any government should be in the energy business, but sometimes innovative government spending can jump-start a new industry. Cleaning up the environment has to be a priority, and if [the Czech Republic] doesn't want to get on the end of a long line of countries dependent on Mideast or Russian oil, then it better start to develop alternatives.
• How do you attract people to biotechnology?
Biotechnology can be scary, especially when it involves the food chain, but I think the general European position is a bit paranoid. As for the Czechs, I think we just have to remind everyone that beer was one of the first biotech success stories. Don't forget beer! Perhaps that could be the slogan of the biotech marketing association.
• What are your business objectives for the country this year?
I would like one major Czech organization to come forward with some seed funding for the Czech biotech portal, and I would like to bring more Czech technology to the attention of the U.S. venture-capital community.
Want your top manager to answer our 10 Questions? Send a message to Frantisek Bouc at fbouc@praguepost.com
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