Biotechnology Survey: 2005

Biotechnology Survey 2005

The Biotechnology Survey 2005 measures the use of biotechnologies and their contribution to the New Zealand economy. The survey also looks at the characteristics of biotechnology organisations, including the use of strategic alliances, information sharing and constraints to biotechnology work.

A full report on the Biotechnology Survey 2005 will be released in June 2006. A copy of Biotechnology in New Zealand 2004, which analyses the results of the Biotechnology Survey 2004, can be found on the Statistics New Zealand website (refer www.stats.govt.nz).

Guide to interpreting the data

The following summary highlights the main points to consider when analysing the Biotechnology Survey 2005 results. A full technical description is contained in the Technical notes of this release.

Definition of biotechnology

The definition of biotechnology which is used in this survey is consistent with the Organisation for Economic Co-operation and Development (OECD) recommendations outlined in the draft Biotechnology Statistical Framework (refer www.oecd.org).

The OECD defines biotechnology as "the application of science and technology to living organisms, as well as parts, products and models thereof, to alter living or non-living materials for the production of knowledge, goods and services."

The following list of techniques was published by the OECD in 2004 as an indicative guideline of what biotechnology includes:

DNA – the coding: genomics, pharmaco-genetics, gene probes, DNA sequencing/synthesis/amplification, genetic modification

Proteins and molecules – the functional blocks: protein/peptide sequencing/synthesis, lipid/protein glyco-engineering, proteomics, hormones, and growth factors, cell receptors/signalling/pheromones

Cell/tissue culture and engineering: cell/tissue culture, tissue engineering, hybridisation, cellular fusion, vaccine/immune stimulants, embryo manipulation

Process biotechnologies: bioreactors, fermentation, bioprocessing, bioleaching, bio-pulping, bio-bleaching, biodesulphurisation, bioremediation, and biofiltration

Sub-cellular organisms: gene therapy, viral vectors

Other: bioinformatics, nanobiotechnologies, other.

Data collection

The Biotechnology Survey 2005 was conducted as a postal survey of all known organisations that were thought to be involved in biotechnology. Further information on the selection and size of the population can be found in the Technical notes of this release.

Use of biotechnologies in New Zealand

In 2005, 135 organisations indicated that they had used one or more biotechnology techniques in the previous two years. Of these 135 organisations, 126 currently used, or would continue in the next two years to use, these biotechnology techniques. This compares with 110 organisations in 2004.

The use of biotechnology techniques can be broken down into three categories, according to which development stage the technique was used in. The development stages are:

• research and development (R&D)
• part of a production process
• part of the product sold.

Of the biotechnology techniques used by New Zealand organisations in 2005, 66 percent were being used at the research and development stage, 20 percent were as part of a production process and 14 percent as part of the product sold. 

These results are consistent with findings in the Biotechnology Survey 2004, where the R&D development stage was also by far the largest use of biotechnology techniques, making up 62 percent of all uses.

Specific uses of biotechnology techniques

The most common type of biotechnology technique being used in the R&D development stage was DNA sequencing/synthesis/amplification, with 51 organisations utilising this technique. This has increased from 39 organisations in 2004, where it was the equal-largest technique in use.

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Fermentation and bioprocessing was the most common biotechnology technique used in both the part of a production process, and part of the product sold, development stages.

Biotechnology area of application

Biotechnology income and expenditure

The figures for income and expenditure attributable to biotechnology in 2005 now include data from universities. Data on this was not published in 2004, due to methodology difficulties related to the collection of this type of data. Statistics New Zealand has improved this area for the Biotechnology Survey 2005.

Figures on biotechnology income and expenditure are subject to large variation and are the most difficult to collect reliable time-series data on. This is most commonly because of varying interpretations of the definition of biotechnology among respondents. Data has been released as, despite its variation at the unit record level, it continues to offer the best possible estimate of income and expenditure on biotechnology, and the questionnaire is consistent with the OECD and international best practice.

Biotechnology income in New Zealand for the 2005 financial year was valued at $811 million, of which $135 million can be attributed to the higher education sector. In 2004, biotechnology income (excluding universities) was measured at $675 million.

This compares in size with the fishing industry, which had a total income of $978 million, as reported in the . Annual Enterprise Survey: 2004 financial year (provisional)

Biotechnology expenditure in New Zealand for the 2005 financial year was valued at $642 million. Of this, $125 million was spent by the higher education sector. This compares with biotechnology expenditure (excluding universities) of $430 million in 2004.

Biotechnology research and development (R&D)

The R&D Survey 2004 collected information about biotechnology R&D expenditure. This differs from total income and expenditure on biotechnology, as not all expenditure recorded in the Biotechnology Survey is on research and development. The R&D Survey 2004 was the first time that information on biotechnology R&D had been measured in the New Zealand economy, and it used the same definition of biotechnology as the Biotechnology Survey 2005.

Results from the R&D Survey 2004 showed that total biotechnology R&D expenditure amounted to $363 million for the 2004 reference year, equivalent to 23 percent of total R&D expenditure in New Zealand. When breaking this figure down by sector, business accounted for $141 million, government $136 million and universities the remaining $86 million.

Biotechnology employment and qualifications

In 2005, the biotechnology sector employed 2,424 people in New Zealand. This compares with 2,264 (revised figure) in 2004.

A large proportion of employees in the biotechnology sector are highly qualified. In 2005, 34 percent of biotechnology employees held a doctorate, while a further 39 percent held a postgraduate or undergraduate qualification.

Although there has been an increase in biotechnology employment between 2004 and 2005, there has been a decrease in the number of employees with a doctorate qualification (836 PhD-qualified employees in 2005, compared with 913 in 2004). The overall increase in employment is due to greater employment of those with Technical and trade, or Other, qualifications.

Biotechnology patents

In the two years ended 30 June 2005, 190 biotechnology-related patents were granted to New Zealand organisations. The private sector was responsible for the highest number of these patents (92).

Constraints to biotechnology R&D

The most common constraint to biotechnology R&D faced by organisations was access to capital, with 54 organisations seeing this as a constraint. This is consistent with the 2004 survey, where access to capital was also considered the largest constraint to biotechnology R&D work.

The next-largest constraints were access to qualified biotechnology research and technical experts, and access to suitably experienced research and technical experts (both 30 organisations).