Convergence

Advances in science and engineering are driving previously separate sectors to collaborate and develop new highly profitable product offerings. The market potential of these converging technologies is substantial. Based on an analysis of existing estimates, McKinsey has shown that the cumulative market for converging bio-, info- and nanotechnologies could top $1 trillion by 2010.

Ireland is particularly well positioned to take advantage of the opportunity convergence offered by its core strategic industries. The Pharma, BioPharma, Medical Technology, ICT and the Food industries represent Ireland’s most important sectors comprising over 3,600 multinational and Irish-owned companies, with combined annual exports close to €100 billion per annum. These are also the sectors that have adopted convergence strategies and can benefit most from it.

The interpretation of what convergence means varies across the different sectors. In ICT it may mean media convergence, between device platforms or communications systems formats, e.g., three screen (TV, PC and mobile device) convergence. Alternatively it can mean the convergence between ICT and healthcare, e.g., in telemedicine or bioinformatics. It refers to the convergence between agriculture, food and pharmaceuticals e.g., pharming or neutraceuticals. It also means the convergence between Medical Technology and Pharmaceuticals or Biotech sectors, e.g., in combination products and regenerative medicine.

One of the immense advantages convergence offers over traditional models for new product development is the emphasis on strategic collaboration. Deriving benefits from technologies sometimes new, but often proven in other, fields being applied in new, but often already proven, markets, makes the business of innovation much more achievable and obtainable. Working with companies who already ‘own’ the ‘channels to market’ or possess viable and readily deployable technologies or processes or who have deep roots in research make for SMART, real and valuable options with reduced risk which increase the expectation and level of the return on the investment in R&D new product development and marketing.

Thus a country that’s home to 13 of the top 15 pharmaceutical companies, 15 of the worlds top 25 medical technologies companies, 8 of the top 10 ICT companies a country that possesses a world class food and agri businesses as well as a strong cohort of agile emerging indigenous companies in each of these strategic sectors offers an enormous resource to the international community of companies looking to seize on convergent technology and collaboration between partners.