41 business R&D in biotechnology

Intramural business enterprise expenditure on R&D (BERD) in the field of biotechnology totalled €3.0 billion in 2014, accounting for around 10% of BERD. The proportion of firms active in this field of research has remained stable compared to 2013, at 11%. Firms that specialise in biotechnology are mostly small enterprises.

In 2014 (semi-finalised data), business enterprises spent a total of €3.0 billion on R&D in biotechnology (stable over the last year). 10% of business intramural expenditure on R&D (BERD) was dedicated to biotechnology (table 41.01). In terms of the number of businesses, 11% of all companies carrying out R&D in France were involved in this field (chart 41.02).

The overall BERD of the businesses concerned was €5.5 billion: intramural expenditure on the 'biotechnology' field therefore corresponds to around 56% of their total BERD.

More than three out of five of active biotechnology firms are called dedicated, i.e. they devote at least 75% of their intramural expenditure on R&D to it. Dedicated biotechnology firms spent nine-tenths of all expenditure in biotechnology within France, representing a total of €2.7 billion in investment.

R&D in biotechnology is carried out by small companies (chart 41.03): 56% of active biotechnology firms and 62% of dedicated biotechnology companies in this field employed fewer than 20 people in 2014. By comparison, only one business in two active in R&D employed fewer than 20 people. The proportion of small businesses is even more marked in other countries. In Spain, 87% of of active biotechnology firms have fewer than 50 employees. In the United Kingdom or Germany, 84% and 71% respectively (2015 data) of active biotechnology firms have fewer than 50 employees (compared to 70% in France, in 2014). The proportion is a little lower in the United States (69%) and South Korea (60%).

By contrast, there are relatively few large structures among dedicated biotechnology companies. Only 6% have at least 250 employees, compared to 10% of companies active in this field and all companies active in R&D. Dedicated companies have an average of 87 employees, compared to 306 for active biotechnology firms and 240 for businesses active in R&D (table 41.01).

The ‘Manufacture of basic pharmaceutical products and pharmaceutical preparations’ remained the main research branch investing in this field in 2014, accounting for 63% of R&D expenditure in biotechnology (chart 41.04), although only 10% of businesses were active in this field. Together with ‘Professional, scientific and technical activities’, these two branches accounted for more than three quarters of all R&D expenditure allocated to the ‘biotechnology’ field. Although the latter group accounted for much less expenditure, it did include a higher proportion of active firms (46% in 2014). The chemical industry still occupied third place in the proportion of expenditure targeted at biotechnology (7%).

Stéphane Montenache