Biotechnologies: SMEs key to boost economic growth

They account for approximately 65% of biotech SMEs under Italian control and represent the main innovation factor in an open innovation framework. Over a fourth of them was created in the last five years and they provided the basis for the development  of actual innovation hubs both from a territorial and sectoral point of view, especially taking into account the spin-offs of Public Research.

They are the biotech SMEs under Italian control, highlighted in a new study conducted by Assobiotec- the National Association for the Development of Biotechnologies which is part of Federchimica – ENEA and APSTI. “ The development of the Biotech Industry in Italy: considerations on the role and the experiences of the SMEs between innovation and support policies”.

The analysis, presented in Rome at the Ministry of the Economic Development, provided the base for a discussion of the measures necessary to make biotech SMEs  an engine for the Country’s development.

As underscored in the study, they could provide a tremendous opportunity for boosting Italy’s economic  growth, with a view to internationalization: one need only think about the high research rate and innovation and the resilience shown in these years of strong economic downturn, during which the biotech sector has proved to be alive and kicking.

Nevertheless, in this scenario, small and micro size, difficulty in raising funds, lack of Venture Capital and specialized Private Equity, fragmentation of the system, difficulty in developing industrial partnerships, lack of a national cultural framework for technology transfer, are great obstacles to development.

“Understanding strengths and weaknesses of the system in which the innovation process of the biotech SMEs is taking place, is crucial to shaping support policies necessary to promoting the consolidation of the sector and prepare it to meet the challenges associated with the growing competitiveness of international markets – Leonardo Vigiani, Director of Assobiotec explained – Of course the support policies implemented by the Government are heading in the right direction, but new measures could mark a real change of pace.

I think in particular of the tax credit on R&D investments. A measure of the highest importance which, however, does not take fully into account that many biotech SMEs have already high levels of R&D expenditures. It would be advisable to refrain from applying the measure to all R&D investments, not just to the sole incremental expenditure”.

“Collaboration between the world of public research and the business community – Carmela Marino, Head of the ENEA Division Technologies and Methodologies for Health Protection, pointed out – plays a crucial role in the innovation process of the Italian biotech companies, as highlighted in the study presented today. ENEA has a long-standing commitment in the application of biotechnologies to the different productive sectors: in the field of health, for instance, with the formulation of new generation plant-made vaccines and biopharmaceuticals but also in “green” chemistry with the production processes of bioethanol and hydrogen or in cultural heritage protection with the biotechnology process for the removal of organic residues from artworks”.

“Science and Technology Parks must be regarded as fully-fledged innovation ecosystems – Gianluca Carenzo, President of the APSTI, remarked – capable of supporting companies, especially biotech ones - in the growth, acceleration and market positioning path. The mapping and study activities preceding the publication of the report highlighted that the APSTI system today represents, for the innovative companies in the biotechnology sector, an important opportunity for growth and  consolidation in the market, both for its capability of attracting new capital necessary to support the activities in the early years, and the networking of the know-how and the technological transfer of the knowledge from the research community.  The Italian Science Parks are in fact a big opportunity to pool and attract capabilities, infrastructures and networks and transfer best technological and managerial practices to boost the national economic system”.