Stem cells: Researchers warn of lost ground

Some of Australia's most eminent researchers have warned that Australia must get creative to stay on top in the increasingly competitive global stem cell research and business landscape.

In 2002, Australia could proudly claim to be a world leader in stem cell research. The US government had banned federal funding of ES cell research, but Australia not only allowed the research within carefully regulated limits, but had also specifically funded a national centre of excellence for both embryonic and adult stem cell research -- the Australian Stem Cell Centre. And Australia had not just one, but three commercial ventures focused on ES cells.

Now, Australia's position is not quite so clear. Of the three stem cell companies, BresaGen (ASX:BGN) sold its technology to a Californian player, and ES Cell International moved to Singapore, where the environment for stem cell research is more congenial. Of the commercial ventures, only Stem Cell Sciences -- with facilities in Australia, Scotland and Japan -- remains local.

"It's disappointing that Australia has gone from having quite a lot of commercial investment in stem cells to a lot going overseas," says Paul Simmons at the Peter MacCallum Institute. "The whole thing disappoints me -- for a country that has 0.1 per cent of the world's population we had a huge proportion of the companies, and that's now been eroded away."

But the diminishing commercial side of the science is only one aspect of Australia's slide from the limelight. While there hasn't been an overt brain drain of stem cell scientists leaving Australia for more permissive shores -- as occurred in the US after the federal funding restrictions were enacted in 2001 -- there hasn't been the expected influx of stem cell scientists eager to work here either.

"There are a lot more scientists in the space in many more institutes in many more countries -- it makes the field more competitive," says Monash University researcher Dr Alan Trounson. "It's difficult to know if we are slipping behind -- and I'm concerned. It's going to be harder and harder to compete. We'll need to work harder and smarter and be more niche-focused. But I still think we have the best scientists."

Trounson says there are still scientists keen to work in Australia or to collaborate with Australian groups. But the lure of California's recent US$3 billion stem cell initiative is hard for any country to compete with.

"We need to set up really good relationships with global players, to encourage exchange of scientists, flexibility and fast access to new ideas and technology," Trounson says.

See The hard cell for more on the upcoming stem cell research debate.