2. TARGETING NEW GROWTH AREAS
2.6. Biotechnology R&D
Recent advances in the life sciences are proving the
prediction that this will be the century of biotechnol- Biotechnology firms
ogy. In two to three decades, new treatments and
Biotechnology firms can be broken down into
drugs, genetically modified foods, biologically con-
three types:
trolled production processes, new materials, biologi-
cally based computing and many other applications
1. Biotechnology firm: a firm engaged in biotech-
may well be part of our everyday lives, improving
nology using at least one biotechnology tech-
health, the environment, and industrial, agricultural
nique (as defined in the OECD list-based
and energy production.
definition of biotechnology techniques) to pro-
duce goods or services and/or to perform bio-
Data on business sector expenditure for biotechnol-
technology R&D. Some firms may be large,
ogy research and development (R&D) performed
with only a small share of total economic
within the country are available for 17 OECD countries
activity attributable to biotechnology.
and two non-member countries. However, data on
biotechnology R&D expenditure are not available for
Two subgroups of biotechnology firms are
Denmark, Japan and the United Kingdom, countries
largely defined by the data collection method.
which have substantial business sector capabilities in
2. Dedicated biotechnology firm: a firm whose
biotechnology.
main activity involves the application of bio-
Business sector expenditure on biotechnology R&D is technology techniques to produce goods or
highest in the United States (USD 25 101 million cur- services and/or to perform biotechnology R&D.
rent PPP). This represents 75% of firms total biotech-
3. Biotechnology R&D firm: a firm that performs
nology R&D expenditures in the 19 countries for
biotechnology R&D. Dedicated biotechnology
which data are available.
R&D firms, a subset of this group, are firms
that devote 75% or more of their total R&D to
Total business expenditure on biotechnology R&D as a
biotechnology R&D.
share of total business sector R&D expenditure is an
indicator of a research focus on biotechnology. The
The data available on firm type depends on the
average share for the 19 countries is 6.14%. Eight
way biotechnology data are collected.
countries have an above-average focus on biotechnol-
ogy R&D. It accounts for 21.7% of all business sector
R&D in Ireland, followed by Belgium (13.1%), Canada
(11.1%) and the United States (10.4%).
An alternative measure of research focus on biotechnol-
ogy is biotechnology R&D intensity, defined as biotech-
nology R&D expenditure as a share of total value added
Source
of the industry sector. The average share for the
19 countries is 0.12%. Seven countries have above- OECD (2009),  OECD Biotechnology Statistics 2009 ,
average biotechnology R&D intensities. The United www.oecd.org/dataoecd/4/23/42833898.pdf.
States leads with 0.31%, followed by Switzerland (0.28%),
Ireland (0.27%), Belgium (0.26%) and Sweden (0.24%).
Going further
The share of total biotechnology R&D (in all sectors)
performed in the services sector is available for bio-
OECD (2005),  A Framework for Biotechnology Statis-
technology R&D firms in 13 countries. It ranges from
tics , www.oecd.org/dataoecd/5/48/34935605.pdf.
2% in Belgium to 86% in France, with an average of 41%
for the 13 countries. In the United States, 73% of all
Figure notes
biotechnology R&D firms are in the non-manufacturing
sector, but only 27% of all biotechnology R&D is attrib-
Data for Slovenia are underestimated.
uted to the non-manufacturing sector (which includes
services, mining, construction and utilities). In The services sector is defined as non-manufacturing
Switzerland, 75% of all biotechnology R&D is performed for the United States. Biotechnology R&D firms for the
outside the services sector. United States, Switzerland and Norway. Data for
Ireland are underestimated.
Although most biotechnology firms have fewer than
50 employees, most biotechnology R&D is performed by Small biotechnological firms refer to dedicated bio-
large firms with over 250 employees. For the United technology firms only for Germany and Canada. Small
States and France, the two countries spending the most biotechnological firms refer to biotechnological firms
on biotechnology R&D, some 75% of all biotechnology with fewer than 100 employees in Switzerland and to
R&D is performed by large biotechnology R&D firms. all biotechnology firms in Poland.
OECD SCIENCE, TECHNOLOGY AND INDUSTRY SCOREBOARD 2009 � OECD 2009
62
2. TARGETING NEW GROWTH AREAS
2.6. Biotechnology R&D
Total biotechnology R&D expenditures in the business sector, 2006
Millions of USD PPP
Total biotechnology R&D (left-hand scale) Biotechnology R&D firms Dedicated biotechnology firms
Biotechnology R&D as a percentage of total business expenditures on R&D (right-hand scale)
%
25 101
3 000 30
2 000 20
1 000 10
0 0
1 2 http://dx.doi.org/10.1787/743350060163
Biotechnology R&D intensity, 2006
Biotechnology R&D as a percentage of industry value added
Biotechnology R&D firms Dedicated biotechnology firms
%
0.40
0.30
0.20
0.10
0.00
1 2 http://dx.doi.org/10.1787/743376071204
Percentage of biotechnology R&D performed Percentage of biotechnology R&D performed
in the services sector by dedicated biotechnology by small biotechnology R&D firms, 2006
R&D firms, 2006
Firms with fewer than 50 employees
% %
100 100
75 75
50 50
25 25
0
0
1 2 http://dx.doi.org/10.1787/743412400851
1 2 http://dx.doi.org/10.1787/743424631181
OECD SCIENCE, TECHNOLOGY AND INDUSTRY SCOREBOARD 2009 � OECD 2009
63
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