Risk is the R in R&D

Research and development (R&D) teams in every organization tend to be risk-averse. Given all the scientific hurdles and regulatory red tape, why risk the money and personal capital on a new blockbuster when you can more easily develop a first generation generic. Many layered, process driven companies bring this on themselves with a lack of trust in their people and lost focus on creativity and entrepreneurship. On the upside, this has created many opportunities for entrepreneurs and start-up businesses to recognize gaps in innovation, assume the risk and bring these ideas to market.

Entrepreneurs and start-ups are generally more nimble and agile than large companies and can be more willing to take risks. They often have a more specific focus, and may be more willing to invest in developing niche products or technologies some larger companies may not see as profitable.

The high costs and regulations associated with R&D in the animal health industry can also make it difficult for larger companies to justify investing in new products, leaving room for smaller companies to fill in the gap. Start-up businesses often have less resources, but also fewer regulations and lower costs, which can make them more competitive in this field.

In addition, entrepreneurs and start-ups are often more willing to challenge the status quo and think "outside the box," which can lead to new and innovative solutions in the animal health and agtech sectors. They may be more willing to take a chance on new technologies or business models, which can drive the industry to new levels.

Finally, the trend of venture capital and private equity investment in the animal health and agtech sectors has also made it easier for start-ups to secure funding and grow their businesses.

Overall, while animal health companies may be risk-averse in R&D, this can create opportunities for entrepreneurs and start-up businesses to drive innovation in animal health and agtech. These smaller companies can bring new perspectives, technologies, and business models to the industry, helping to push it forward.