Hungary has the most advanced biotechnology industry and the most favourable environment for future growth among the EU’s 14 newest member states and candidate countries, according to figures published today (24 September). Sharing bottom place are Bulgaria and Malta.
The results are part of a project funded by the European Commission’s 6th Framework Programme, to gather and analyse information about the biotechnology industry in these countries, an area where comparative data has so far been lacking. The project looked at the 12 newest member states – Bulgaria, Cyprus, the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, the Slovak Republic and Slovenia – and the candidate countries Croatia and Turkey.
To measure the status of biotech in these countries, a standardised Development Capacity Index (DCI) was established. This uses quantitative factors, such as how many companies there are and the number of products in the pipeline, to indicate the maturity of the sector, and qualitative factors, for example government support and the level of infrastructure development, as indicators of the potential for development.
On a par with the West
The top three countries – Hungary, Poland and the Czech Republic – are “already on par with some Western European countries”, according to the report, drawn up by the industry association EuropaBio and Venture Valuation AG, a specialist in assessing and evaluating companies in high-growth markets such as biotechnology and medical technology. Estonia isn’t far behind the leaders.
“Hungary, the Czech Republic, Poland and Estonia have mostly been the early movers in the biotechnology sector, or the ones with a coherent framework for biotechnology and innovation,” EuropaBio’s Secretary-General Willy De Greef and Venture Valuation’s CEO Patrick Frei write in the foreword to the report.
Many other countries are far less advanced than their western European neighbours. This gulf can be explained by factors including political instability in past decades, underdeveloped infrastructures, limited access to funding, and in many cases the relatively recent transition from a planned to a market economy.
Shifting focus
The financial crisis has exacerbated the situation, with the political focus shifting away from developing R&D and the biotechnology sector. One indication of the impact of the crisis is that in 2008 just two biotech companies were founded in the region. To put this figure in context, the study identified 260 biotechnology companies operating in the 14 countries.
Other obstacles highlighted by the report include limited collaboration between the academe and industry, and a lack of effective technology transfer mechanisms
“Scientists at academic institutes are focused on, and rewarded for, publishing their research with the purpose of obtaining grants for further research, while patenting and spinning-off or licensing their work is not encouraged,” the report says.
“Technology transfer offices exist in some of the countries but are largely in the beginning stages of development and many scientists remain unaware of the legal framework around patenting their inventions.”
The countries analysed are at different stages of development and have different areas of focus. Of the 260 companies identified, 29 are in drug discovery and development. Some 55 operate in other biotechnology areas such as veterinary therapeutics, agribio and industrial biotechnology. The vast majority, 176, provide biotechnology services such as contract research, diagnostics, manufacturing and analytical services.
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