Département fédéral de l'intérieur DFI Office fédéral de la statistique OFS FSO News 4 National Economy Neuchâtel, February 2008 Biotechnology R&D in Switzerland “Science and Technology” Indicators Organisation - Structure - Finance - Personnel Information: May Lévy, FSO, tel.: +41 32 71 36828, e-mail: [email protected] Elisabeth Pastor Cardinet, FSO, tel.: +41 32 71 36299, e-mail: [email protected] Section Economic Structures and Cycle Order number: 139-0405 Espace de l'Europe 10 CH-2010 Neuchâtel www.statistique.admin.ch FSO NEWS . Contents 1. Introduction 5 5 Swiss biotechnology R&D in the international context 11 1.1 Scope of the analysis of biotechnology 5 6 Enterprises in Switzerland specialised in 1.2 Statistical framework and methods for biotechnology R&D 13 biotechnology 5 6.1 Profile of enterprises specialised in biotechnology 1.3 Field of biotechnology under six headings 5 R&D 14 2 Organisation of biotechnology 6 6.2 Research strategy of enterprises specialised in biotechnology R&D 15 2.1 Areas of activity in biotechnology 6 2.2 Action plan of biotechnology enterprises 6 7 Summary and conclusions 18 2.3 Dynamics of biotechnology clusters 6 Bibliography 19 2.4 Collaborative network of large groups 6 Abbreviations 19 3 Types of enterprise in the industrial biotechnology sector 7 4 Situation of biotechnology in national R&D 8 4.1 Enterprises active in biotechnology R&D 8 4.2 Resources in biotechnology R&D 9 4.3 Structure of enterprises active in biotechnology R&D 10 3 FSO NEWS . 1 Introduction 1.1 Scope of the analysis of biotechnology 1.2 Statistical framework and methods for biotechnology As noted by the Forward Planning Staff of the Swiss The results of this publication are set in a particularly Federal Administration in its report “Challenges 2007- dynamic international context. Indeed the Organization 2011” (p.103) modern biotechnology is now at the for Economic Cooperation and Development (OECD) forefront of the international scientific, social and political recently developed a statistical framework to give scenes. Moreover, biotechnology is an innovative area of guidance on assessing R&D and the production of goods research and development (R&D), and it holds an and services in the area of biotechnology (OECD, 2005). important position in Switzerland. Information generated Moreover, on an experimental basis, the OECD, with a by R&D in general, and by biotechnology in particular few member countries is currently defining a method to brings knowledge, innovation and growth into new areas identify characteristics of enterprises active in such as human and animal health, the agro-food industry biotechnology, and their contribution to economic and the environment business. Swiss industry is development. The present publication is largely based on expanding in this innovative niche. Other R&D activities this conceptual framework, so the results for Switzerland are taking part in this boom, but the subject of this study can be compared with those of other countries. is private enterprises in Switzerland. This field of activity is particularly important, and the 1.3 Field of biotechnology under six headings Swiss Federal Statistical Office (FSO) wishes to contribute This publication describes the field of biotechnology in to studies carried out in this area, by exploiting the private enterprises under the following six headings. available official statistics to a maximum. Therefore the Heading 2 presents the organisational set-up and the main objective of this publication is to present the profile types of enterprise working in industrial biotechnology. and strategy of enterprises active in biotechnology R&D Heading 3 gives a formal definition of biotechnology, in Switzerland. This report attaches particular importance and distinguishes between the different areas in which to enterprises that work only in this area. To do this, the biotechnology is applied. The position that biotechnology results of the 2004 R&D survey (economiesuisse / FSO, occupies in Switzerland is analysed under heading 4, 2006) conducted by the FSO among private companies using various parameters, with these results set in an are analysed thoroughly. international perspective under heading 5. Heading 6 concentrates on the main characteristics of the enterprises specialised in biotechnology R&D in Switzerland; it presents the typical profile and the research strategy of these enterprises. Finally heading 7 summarises the main elements identified under the previous headings, and sets them in a longer-term context. 5 FSO NEWS . .. 2 Organisation of biotechnology 2.1 Areas of activity in biotechnology 2.3 Dynamics of biotechnology clusters Preventing new diseases, improving the resistance of Switzerland has four biotechnology clusters, which have plants to harmful organisms, optimising the detection of developed in the trans-boundary regions of Basel (Bio diseases, treating human infertility, combating pollution, Valley), Zurich (Mednet), the Lake Geneva area (Bio etc. are all areas that have developed as a result of new Alps) and the Ticino (Bio Polo). These four clusters alone knowledge, recently-developed methods and new account for nearly 80 percent of Swiss biotechnology biotechnology products. Current discoveries in the area enterprises and for universities, research laboratories, of life-sciences arise from innovations that contribute to non-profit institutions, venture capital companies and transforming the economy and society. business angels. The clusters attract key knowledge, resources and highly competent people, reaching the Box I: Definition (OECD, 2005) critical mass necessary to encourage the creation of Biotechnology enterprises, to promote alliances and to develop To define biotechnology, the OECD uses both a single networks of collaboration between the players in definition and also a list-based definition of biotechnology. biotechnology techniques. The provisional single definition of biotechnology 2.4 Collaborative network of large groups recommended by the OECD (2005) is deliberately broad. It covers all modern biotechnology but also The major pharmaceutical groups occupy a specific many traditional or borderline activities: “The position in R&D and in biotechnological innovation. They application of science and technology to living are increasingly driven to outsource part of their organisms, as well as parts, products and models biotechnology work to young technology enterprises. In thereof, to alter living or non-living materials for the these companies most of the work is involved in production of knowledge, goods and services.” innovative projects, exploiting the results of R&D and setting up innovations in the area of biotechnology. 2.2 Action plan of biotechnology enterprises In order to create value added to their scientific research and innovation, and to benefit from synergies, enterprises and institutions in the area of biotechnology are usually concentrated in a trans-national geographical area. This strategy is based on the principles of complementarities, cooperation, similarities and competition. The close relationships between sectors and geographical proximity facilitate exchanges between enterprises. This type of organisation is known as a cluster (Avenir suisse, 2006 and ODEC 2003) and in the area of biotechnology this provides particularly interesting conditions for invention, innovation and reaping profits. 6 FSO NEWS . 3 Types of enterprise in the industrial biotechnology sector The industrial biotechnology sector consists of all The areas of application of biotechnology correspond enterprises active in biotechnology. The OECD (2005) to groupings of industries. defines an “enterprise active in biotechnology” as a firm An enterprise will be classified in the category of red, that carries out key activities in the field of green, white or other types of biotechnology according biotechnology, for instance applying of at least one to the industry in which it is involved1 (OECD, 2006). biotechnology technique in the production of goods or services and /or carrying out R&D activities in bio- technology. The OECD (2005) distinguishes between enterprises active in different areas of biotechnology, here described as red, green, white and other types (see G1). G1 Biotechnology applications Red biotechnology Medical applications: human and animal health Gre en biotechnology Agro-food applications: agriculture, forestry, fishing, food industry and food processing White biotechnology Industrial and environmental applications: industrial processes, natural resources and environmental protection Other types of biotechnology Applications: bio-informatics, aquaculture and products from the petroleum, chemical, forestry, mining and energy industries, etc. Source: OECD, Biotechnology Statistics © Federal Statistical Office (FSO) 1 This delimitation of areas of application of biotechnology based on industries underestimates in particular enterprises active in red biotechnology because many companies active in the field of health are classified in the R&D industry and are therefore allocated to “other types of biotechnology”. 7 FSO NEWS . .. 4Titre Situation de chapitre of biotechnology in national R&D 4.1 Enterprises active in biotechnology R&D We have no precise information on the type of research carried out by the remaining 245 enterprises (see G2). Among enterprises active in R&D in Switzerland, some dedicate part or all of their efforts to R&D in Box II: Definitions (OECD, 2002) biotechnology. In