Biotechnology's European Economic Impact

The total European market for goods which are dependent on biotechnology is already extensive and is now worth around 38 billion Ecu ($46.7 billion) in sectors as diverse as pharmaceuticals, chemicals, diagnostics, agriculture and food, according to a report from Ernst & Young, entitled Biotechnology's Economic Impact in Europe: A Survey of its Future Role in Competitiveness.

In spite of the already significant investments in Europe, says the report, previous studies have commented on the attractiveness of the USA when considering biotechnology-related investment. The USA is perceived to have a greater public-sector support for investment, a more predictable regulatory structure and a more positive public climate towards the industry.

The survey conducted by Ernst & Young showed that future investment intentions among biotechnology companies demonstrates a distinct bias towards the USA. Investment for all companies in Europe is expected to show a decline of almost one third, with a commensurate rise in investment in the USA. With respect to smaller companies (less than 1,000 employees), the downward investment curve for Europe is less pronounced, with a projected downturn of one quarter. The slack is expected to be taken up by the USA.