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Feasibility study for an Estonian Materials Technology Programme

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<strong>Feasibility</strong> <strong>study</strong> <strong>for</strong> <strong>an</strong> Estoni<strong>an</strong> <strong>Materials</strong> <strong>Technology</strong> <strong>Programme</strong><br />

2. <strong>Materials</strong> technology in Estonia<br />

Crystalsol is now run by Austri<strong>an</strong> business partners <strong>an</strong>d consequently was not included in the interviewed<br />

cases. Currently, Crystalsol operates at two locations. Research <strong>an</strong>d development of the semiconductor powder<br />

takes place in Tallinn. Development of the device <strong>an</strong>d the production process is based in Vienna, Austria.<br />

Crystalsol develops <strong>an</strong> entirely new type of flexible photovoltaic module with a signific<strong>an</strong>t cost <strong>an</strong>d versatility<br />

adv<strong>an</strong>tage compared to all currently known photovoltaic technologies. The technology is based on decades of<br />

research <strong>for</strong> the Russi<strong>an</strong> military <strong>an</strong>d Philips semiconductor know-how from the 1960s. The core innovations<br />

are the crystalline semiconductor powder made from a patented new material <strong>an</strong>d the low-cost roll-to-roll<br />

production process. Crystalsol’s technology leads to cost reduction of 50-60% compared to current industry<br />

average. This me<strong>an</strong>s production cost below 0.3 EUR per Watt peak achievable in the medium term. At<br />

this cost level the generated electricity is cost competitive with conventional energy sources. According to<br />

Professor Mellikov at Tallinn University of <strong>Technology</strong>, who is one of the founders of the comp<strong>an</strong>y, one of the<br />

reasons to establish the spin-off was to create a place <strong>for</strong> his PhDs to go work once they graduate.<br />

Case: Baltic Technologies Development<br />

Background is R&D<br />

Baltic Technologies Development (BTD) is a biotechnology comp<strong>an</strong>y orginally established in 1993 with the<br />

business pl<strong>an</strong> to sell services from Estonia to Finl<strong>an</strong>d. Today the comp<strong>an</strong>y has taken one of the R&D approaches<br />

developed in its sister comp<strong>an</strong>y Molcode with <strong>an</strong> aim to develop novel plat<strong>for</strong>ms <strong>for</strong> medical drugs. BTD has<br />

lifted over 5 ME of investment money <strong>an</strong>d is a limited liability comp<strong>an</strong>y with shareholders from the US, Estonia<br />

<strong>an</strong>d Finl<strong>an</strong>d. The comp<strong>an</strong>y has not sold <strong>an</strong>y products yet. The comp<strong>an</strong>y employs 5 PhDs.<br />

<strong>Technology</strong> is based on teaching computers to construct new compound properties <strong>an</strong>d future products under<br />

development include:<br />

New generation <strong>an</strong>tisense gene-silencing technology<br />

Novel <strong>an</strong>tivirals<br />

Neurotrophic factor mimetics as the potential drug c<strong>an</strong>dites targeting<br />

Neurotrophic factor artemin mimetics as the potential drug c<strong>an</strong>didates targeting neuropathetic pain<br />

The first big application area is in neurodegerative diseases. For neurology, new componds mimicing proteins<br />

are developed to keep neurons alive. In case of neurodegenerative diseases, such as Parkinson’s, the<br />

neurons die due to lack of nutrition.<br />

Their competive adv<strong>an</strong>tage compared to other pharmaceutical comp<strong>an</strong>ies is the new kind of plat<strong>for</strong>m.<br />

Traditional pharmaceutical comp<strong>an</strong>ies slow down the progress of the disease, whereas BTD future products try<br />

to cure the cause.<br />

Vision: To have production started by the end of 2011. Partnerships <strong>an</strong>d confidentiality agreements have<br />

been signed with very m<strong>an</strong>y big pharmaceutical comp<strong>an</strong>ies.<br />

University-Comp<strong>an</strong>y collaboration<br />

Majority of the research is conducted as contract research at the universities with partial help from Estoni<strong>an</strong><br />

public funding. In addition to Tartu University <strong>an</strong>d Tallinn Technical University, university partners also include<br />

Helsinki University in Finl<strong>an</strong>d. Research results have been published in high-class journals.<br />

Lessons learned/key success factors from the interview<br />

Plat<strong>for</strong>m development, especially <strong>for</strong> the pharmaceutical industry, takes a long time <strong>an</strong>d a lot of money.<br />

The comp<strong>an</strong>y has brilli<strong>an</strong>t technology with potential <strong>for</strong> a large return.<br />

Comp<strong>an</strong>y was created by a professor in Estonia because he believed he had enough educated people to<br />

work at them.<br />

The comp<strong>an</strong>y c<strong>an</strong> be categorised both under biotechnology as well as a novel materials technology<br />

development.<br />

Contact <strong>an</strong>d more in<strong>for</strong>mation: Professor Mati Karelsson, mati.karelson@ut.ee

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