Biotechnology Survey: 2007

Commentary

Biotechnology Survey 2007

The Biotechnology Survey 2007 measures the use of biotechnologies and the characteristics of biotechnology organisations, including the use of strategic alliances, information sharing and constraints to biotechnology work. The information gathered is intended to assist in the formation of policies and procedures in support of biotechnology business activity.

Guide to interpreting the data

The following summary highlights the main points to consider when analysing the Biotechnology Survey 2007 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 2007 was conducted as a postal survey of all 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.

Organisations active in biotechnology

In order to determine the organisations are actively involved in biotechnology, the survey collects information about past, current and intended future use of biotechnologies. Organisations active in biotechnology are defined as those that either currently undertake biotechnology, or that will in the next two years.

The number of organisations active in biotechnology in 2007 was 168, in increase of one third over the 126 organisations active in biotechnology reported in the Biotechnology Survey 2005, which continues an upward trend from 110 organisations active in biotechnology in 2004.

 Graph, organisations Active in Biotechnology

This increase between 2005 and 2007 is accounted for by growth in the number of smaller organisations conducting biotechnology. Organisations with less than 10 employees increased from 30 in 2005 to 69 in 2007. Organisations with 10 to 49 employees also increased from 27 in 2005 to 42 in 2007. Organisations with between 50 and 99 employees have remained steady at 12. However, there has been a drop in the number of organisations with 100 or more employees, falling from 60 in 2005 to 45 in 2007. This decrease appears to be due to a combination of the restructuring of some large organisations into smaller separate units and variation in levels of reported biotechnology activity.

Use of biotechnologies in New Zealand

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

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

The use of biotechnology techniques has remained reasonably stable over the last two years. Of the techniques used by New Zealand organisations in 2007, 67 percent were at the R&D stage, 21 percent were as part a production process and 13 percent were as part of the product sold. These results are also consistent with finding from previous biotechnology surveys, which showed the greatest use in the R&D stage. Corresponding figures from 2005 were 66 percent of biotechnology techniques used at the R&D stage, 20 percent at the part of the production process stage, and 14 percent at the part of the product sold stage.

Specific uses of biotechnology techniques

Process biotechnology in the production stage was the most common form of biotechnology reported. This is followed by DNA – the coding, as part of the product sold and R&D stage, and proteins and molecules at the R&D stage.

A further breakdown shows that DNA sequencing/synthesis/amplification and cell/tissue culture, tissue engineering account for the most common types of biotechnologies used, both 38 percent, at the R&D stage. Fermentation and bioprocessing accounts for 27 percent of the development within the part of the production process stage. At the part of the product sold stage, fermentation and bioprocessing accounts for 11 percent of biotechnology used.

Biotechnology area of application

In 2007 the most common area of biotechnology application in New Zealand was the environmental area at 32 percent, which is similar to 2005. This was followed by plant improvement, plant growth, functional foods/nutriceuticals, biomanufacturing and medical diagnostics/devices, all reported at 25 percent.

Biotechnology use by region

Regional breakdowns of biotechnology use were collected for the first time in the 2007 survey. Most biotechnology organisations are active in Auckland region, (21 percent), followed by the upper South Island region, (17 percent). Levels of biotechnology are similar across the rest of the regions within New Zealand, ranging from 11 to 13 percent. New Zealand organisations can also carry out biotechnology activities overseas, 12 percent of organisations active in biotechnology indicated they were undertaking work in overseas locations.

 Graph, Regional Use of Biotechnology.

Across all regions, human health and agricultural biotechnology (other than animal health) were the two predominant areas of biotechnology at 22 and 23 percent. These were followed by animal health and industrial and environmental biotechnology being undertaken, both at 16 percent. Least common was biotechnology in the area of medical devices at 8 percent.

Biotechnology patents

In the two years ending 30 June 2007, 225 biotechnology-related patents were granted to New Zealand organisations. This compares with 189 biotechnology-related patents granted in 2005. The highest number of patents (108) were granted to the private sector, compared with 93 in 2005. This was followed by 75 patents granted to the public sector (including State-owned enterprises) and 48 patents for the higher education sector.

Constraints to biotechnology R&D

The most common constraint to biotechnology R&D faced by organisations was access to capital. Fifty percent of organisations saw this as a constraint, compared with 43 percent in 2005.

As with results from 2005, the next reported constraints were access to qualified biotechnology research and technical experts, and access to suitably experienced biotechnology research and technical experts, both 25 percent in 2007, compared with 24 percent in 2005.

Regulations also continue to be a constraint, reported by a number of organisations, 23 percent saw this as a constraint to biotechnology R&D in 2007. There has been a decrease in organisations that report the implications of the Treaty of Waitangi as a constraint, dropping from 10 percent in 2005 to 5 percent in 2007.

Overseas recruitment of staff

Results show that figures for successful and unsuccessful recruitment of biotechnology staff from overseas have remained reasonably stable from 2005 to 2007, with roughly two thirds of organisations recruiting successfully from overseas.

In 2007 there was a two-fold increase in the proportion of organisations successfully recruiting staff from the United States, with 30 percent recruiting staff from the United States, (up from 19 percent in 2005). Staff recruited from Asia has also increased, from 10 percent in 2005 to 19 percent in 2007. The percentage of organisations with staff recruited from Europe and Australia decreased. These regions were the source of 26 and 22 percent respectively of biotechnology staff recruited in 2007. The corresponding figures for 2005 were 38 and 24 percent respectively.

 Graph, Overseas Recruitment of Biotechnology staff.

The principal reason for unsuccessful recruitment of staff remained the inability to match overseas salary levels. Fifty-five percent of organisations reporting they were unsuccessful in their overseas recruitment listed this as a reason, up from 42 percent in 2005. In both years this was the most common reason and was much more prevalent than any other response.

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Income, expenditure, exports and staff

Previous biotechnology surveys have published results around biotechnology income, expenditure and exports earnings.

These were collected once again in the 2007 survey, but feedback from key respondents indicated that this information was difficult to distinguish from corresponding overall figures for organisations in industries where bioprocesses are an inherent part of their traditional production process. The same issue also affects the number of biotechnology staff.

The impact of these difficulties can be a large variation in reported figures, which are dependant on individual respondent's interpretation of biotechnology definitions or processes. As such, these figures have not been published from the 2007 survey and further investigation will be undertaken to better understand these issues and their impact on financial and employment measures of biotechnology activity.

 

For technical information contact:
Meighan Ragg
Wellington 04 931 4600
Email: info@stats.govt.nz