Since the Covid-19 pandemic, the biotechnology sector has been recognized as a strategic tool globally, on par with industries such as energy, telecommunications, and defense. Suffice it to say that the United States initiated the National Security Commission on Emerging Biotechnology, charged by the U.S. Congress to conduct a thorough review of how advances in emerging biotechnology and related technologies will affect current and future Department of Defense activities.
Because of its strategic potential for public health and the circular bioeconomy, this sector is at the center of the economic and technological policy of the world’s leading powers. The Interim Report just released by theWorking Table for the Internationalization of Industries in the Biotechnology Sector (NWTIB) initiated by the Italian government, offersan overview of the initiatives of some of the leading countries in the field of biotechnology.
Here are some of the countries analyzed:
United States, global leadership
The United States maintains global leadership in biotechnology, with a market share of 41.6 percent in 2022 and a global value estimated at $1,370 billion. California, with its renowned San Diego and Bay Area clusters, is one of the most important hubs, backed by venture capital and prestigious research institutions such as Stanford and UC Berkeley. The city of Boston also represents a hub of excellence with Mass General Hospital and numerous innovative start-ups.
The interest of the Dragon
China has focused heavily on biotechnology growth, supporting a wide range of sectors: from vaccine production to gene editing and the bioeconomy. Thanks to a strategic funding policy and a large talent pool, China’s biotechnology sector has experienced significant growth in recent years, positioning itself as a future player on the world stage.
Germany on the BioNTech wave
In 2022, Germany had more than 750 biotechnology companies, generatingturnover of 25 billion euros and employing 47,000 people. The extraordinary success of Germany BioNTech has had a significant impact, with profits reaching 17 billion euros in 2021-2022 alone. However, production in the sector has shown signs of slowing down, with turnover forecast reduced to around 11 billion euros by 2023, due to various factors, including the energy crisis and a shortage of skilled labor.
Italian ambitions
According to data from the BioInItaly 2023 Report, the total turnover of Italian biotech companies in 2022 was 13.6 billion. Of these, 74% came from the healthcare sector. The NWTIB report states that Italy has the opportunity to play a role in global competition among the leading countries in biotechnology, provided that scientific research and biotech companies are elevated to a strategic priority and supported by targeted government actions and policies.
The French Healthcare Innovation 2030 Plan
France is the third largest biotechnology hub in Europe, with more than 5,500 employees in the sector, mainly in research and development. In the wake of the pandemic, the French government launched the “Healthcare Innovation 2030 Plan” with the goal of transforming France into the European leader in healthcare innovation by 2030. The plan includes creating biotechnology hotspots and simplifying market access for new treatments. Its leading research institutions include the Institut Curie and CNRS, along with venture capital firms such as Sofinnova Partners and Jeito Capital.
Hong Kong queen of IPOs
Hong Kong has emerged as an advanced biotechnology hub due to high life expectancy and a growing demand for healthcare services. The region has invested in projects such asthe InnoLife Healthtech Hub for life sciences, backed by a $10 billion fund. It is also a major global destination for biotech IPOs and collaborates closely with mainland China under the Greater Bay Area (GBA), facilitating the use of drugs and medical devices between the two regions
We have summarized these analyses in a presentation, which provides an overview of the world’s leading biotech economies:
