You can’t navigate a new world with an old map

The scientific research landscape is changing rapidly. The US’s long-standing position as a global leader is facing increasing pressure. Most businesses are still operating on an old playbook, but the approach needs to change.

Understanding the underlying forces at play can help companies develop a deliberate, flexible strategy to address these challenges effectively. This isn't just about minor tweaks. It requires a fundamental shift in how the game is played.

Here's a comparison of the old and new orders, highlighting key shifts in the market.

Market focus

Previously US-centric, reliant on federal funding, now the market is becoming more globally diversified with numerous smaller, growing funding pockets worldwide.

Funding

Historically stable and increasing US federal research funding has become uncertain and declining.  Other regions like the UK, EU, Canada, South Korea, Japan, and China now show more stable or increasing R&D budgets.

Investment climate

Private investment, including venture capital, was more accessible across various stages of biotech development. Now, private investment is cautious, favouring later-stage companies with proven pipelines, with increased due diligence for early-stage biotechs. Stock market volatility is suppressing IPO valuations.

Risk mitigation

The US provided a large, stable and well-funded research base. Most companies launched products here first to take advantage of the scale that the US market offered.

The new order demands proactive planning and geographic diversification. Strong financial planning is needed to deal with budget delays, cuts and the increased cost of serving multiple markets.

Product demand

Previously labs wanted the latest instrumentation because new, cutting-edge instruments offered research advantages, particularly for foundational research. Now, there's increased demand for cost-effective solutions, refurbished equipment, and products demonstrating clear ROI (saving money, improving efficiency, accelerating research).

Business model

Previously mainly one-time capital purchase of equipment and products is giving way to multiple, flexible options. There is a shift towards a wider range of purchase and usage options e.g. reagent rental models, leasing or “pay-as-you-go” etc.

Competitive advantage

Previously having a leading-edge technology and robust product pipeline was sufficient for business success. Now a highly strategic and agile approach is needed that can adapt quickly to funding shifts, provide value-driven products and expand by partnering in new geographies. Innovation is more commercially focused, targeting emerging, funded areas (e.g., gene therapy, applied research).

Talent Flow

The US was a "brain magnet," attracting global scientific talent due to strong funding and research infrastructure. Now, federal funding cuts risk a "brain drain" from the US, while other countries actively recruit, leading to a "brain gain" in those regions.