Biotechnology

Biotechnology – essentially the use of living things to solve problems and make products – is an important and growing industry in New Zealand. It was identified by the Government as one of three areas of significance to New Zealand’s economic future (New Zealand Official Yearbook, 2006). Many of New Zealand’s most important companies and industries rely on biotechnological advances. It is particularly important in the health field, with the development of new diagnostic tests and medicines often reliant on biotechnological advances.

Biotechnology includes a range of research methods from molecular and cellular biochemistry, through to gene technology and genetic modification. Examples of biotechnology research projects include: developing plant-derived petrol and plastics; anti-tooth decay products using beneficial microbes; easily digested grasses to improve animal growth and reduce greenhouse gas emissions; bio-controls for grape disease; and the genetic modification of cows to produce milk with medically valuable proteins.

The major employers in the industry include research institutes, universities, government departments and a growing number of private companies. Opportunities for research are largely influenced by the amount of funding available from the Government, private investment and international partnerships.

Funding remains a major issue for all life science-related research and development in New Zealand. The Government’s total public investment in research, science and technology was equivalent to 0.52 per cent of GDP (Gross Domestic Product) in 2005. This figure is low compared to most OECD (Organisation for Economic Co-operation and Development) countries. New Zealand also has one of the lowest levels of private sector investment in research and development. However, at 34 per cent of total government R&D investment, this investment is proportionally higher than the OECD government average of 25 per cent (NZ Official Yearbook 2006).

However, in 2003 a Biotechnology Task Force made a number of recommendations for the industry, such as:

  • More support for biotechnology education in schools
  • Fostering the creative potential of Maori as innovators
  • More support of biotechnology companies
  • Encouraging collaboration between research providers and businesses
  • The establishment of a biotechnology investment fund
  • The provision of funding to increase the rate of commercialisation
  • The promotion of New Zealand biotechnology overseas

In response to the task force recommendations, the Government has increased its funding and strategies to promote growth. The Research and Development Survey 2006 showed a 10 per cent increase in research and development investment since 2004. And the Government has also introduced a $630 million tax incentive in the 2007 Budget to promote research in the private business biotechnology sector. Overall, the impact of these initiatives is expected to boost annual export earnings from $250 million to $1 billion by 2010.

Significant stats
  • New Zealand organisations employed 2,464 biotechnology employees in 2005
  • $640 million in funding was invested in the biotechnology sector in 2005
  • In 2007, the Marsden Fund increased its funding to $44 million which will fund 93 new research projects
  • Biotechnology sector income was valued at $811 million in 2005.

Statistics sources: Statistics New Zealand; New Zealand Biotechnology Industry Growth Report, 2006; Royal Society of New Zealand

Except where indicated, this profile is based on edited extracts from www.careers.govt.nz