The Importance Of The Biotechnology Industry

Describe the biotechnology industry? Subsectors and most important ones?

Industrial biotechnology is believed to be the most adequate approach in order to battle pollution, cost reduction and resource conservation. It is often referred to as the third wave in biotechnology. If developed to its full potential, industrial biotechnology may have a larger impact on the world than health care and agricultural biotechnology. It offers businesses a way to reduce costs and create new markets while protecting the environment. Also, since many of its products do not require the lengthy review times that drug products must undergo, it 's a quicker, easier pathway to the market. Today, new industrial processes can be taken from lab study to commercial

This article compares the evolution of networks of companies specializing in biotechnology for the two main application areas of biotechnology that are food and health. Networks and alliances in biotechnology industry is among the industries that have the highest rates of alliance formation. In 1988, Ernest & Young reported that more than 70% of the US biotechnology firms were involved in strategic alliances and on average, each firm had 10 partners. Indeed, OECD statistics also show that based on a literature-based survey (reports from newspaper, trade journals, etc.), the number of alliances has increased from 45 in 1990 to 526 in

Acquiring a company, after all, means buying its weaknesses along with its strengths. A successful alliance can lead to an acquisition, and many do, but the likelihood of a good marriage is enhanced in these cases by a period of living together.

Driven to align by market forces often beyond their control, the biotech and pharmaceutical companies have spun enough webs to serve as a virtual laboratory for the creation of alliances. A close examination of their experiences sheds light on both the potential benefits and the inevitable problems of the alliance process, offering useful lessons for companies in any fast-moving industry.

It is simplistic to say that biotech companies are the product innovators and pharmaceutical companies the market deliverers, but it is along these lines that the two groups are coming together. Biotechnology, in effect, is becoming a supplier, selling its drug discovery capabilities to the pharmaceutical manufacturers. For their part, the drug companies are effectively "outsourcing" the R portion of R.&D., leveraging their development expertise with other companies '