STRUKTÚRÁK SZERVEZETEK STARTÉGIÁK IPARGAZDASÁGI SZEMLE 1991 SPECIAL ISSUE - INDUSTRIAL STRATEGIES AND POLICIES FOR ECONOMIC GROWTH IN THE 1990'S

IV. Financing private sector activities - Vincent H. Tobkin: Venture capital's role in industrial strategies and policies for economic growth

environment. Their insights are based upon a comprehensive understanding of the mechanisms by which proteins are assembled by the ribosomes. The initial commercial significance of these discoveries is the ability to improve the speed, purity, and cost of synthesizing a wide variety of proteins, especially drugs. In the longer term, the Institute's discoveries may serve as a means of producing both naturally occurring proteins not manufacturable using conventional technology and protein-like compounds not currently present in nature. PREREQUISITES Sierra Ventures undertook forming RiboGene with the Institute of Protein Research because several necessary conditions existed. Foremost of these is a truly world-class scientific discovery. We estimate that RiboGene now has a one to two year lead over competitors in the United States, Japan, and Europe. Sierra Ventures was able to recruit a California-based start-up team capable of under­standing and enhancing the Institute's work. This team is headed by Dr. K. P. Wong, Dean of Science, California State University at Fresno and Adjunct Professor of Biochemistry and Biophysics, University of California, San Fran­cisco Medical School. The Institute, following the advice of scientific colleagues in the West, had also sought world-wide patent protection for its discoveries. Fur­thermore, Sierra Ventures was able and willing to undertake the international negotiations and secure the government approvals required for RiboGene's for­mation. Finally, the Institute of Protein Research was willing to let a Western partner set the pace and direction of future collaboration. This set of conditions is likely to be required for comparable collaboration in other fields. Social and governmental changes in Eastern Europe should facilitate the creation of these conditions. Sierra Venture's success with RiboGene has in­creased awareness of and interest in such collaboration among other U.S. venture capitalists. CURRENT STATUS RiboGene has met with both scientific and financial investors as it begins com­mercializing its technology. Several California venture funds are close to invest­ing in the company and initial reactions of target customers have been extremely favorable. Scientific investigation also continues, and RiboGene's recent discov­eries suggest that cell-free protein synthesis technology will be widely ap­plicable. The Institute of Protein Research and the USSR Academy of Sciences are receiving several benefits from this collaboration, which should encourage fu-

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