OECD report highlights Europe’s strengths – and structural challenges – in biosolutions

At a pivotal moment for Europe’s industrial policy, the OECD has published a new flagship Working Paper comparing the innovation ecosystems and regulatory frameworks for biosolutions in the European Union and the United States.

The report provides a timely and evidence-based contribution to the policy debate ahead of the European Commission’s forthcoming Biotech Act II.

As the Commission gears up to present Biotech Acts II later this year, biotechnology and biomanufacturing are emerging as strategic industries at the heart of the EU’s new industrial policy.

Yet despite strong infrastructure and scientific capacity, a recent analysis by the OECD shows how Europe risks falling behind the United States in investment, scale-up and regulatory performance for biosolutions.

In the Working Paper, the OECD analyses the industrial structures of the biosolutions sector in the EU and the USA providing granular analysis and data on where the EU is doing well – and where it is losing ground.

The Alliance for BioSolutions is sharing the report here to highlight the importance of its analysis and its findings.  

“This report provides an important and much-needed evidence base for the policy discussions currently taking place in Europe. Europe has strong scientific capabilities and industrial foundations in biosolutions, but if we are to remain globally competitive, we must address the regulatory fragmentation and scale-up barriers identified in the analysis. Biotech Act II presents a crucial opportunity to strengthen Europe’s framework conditions and ensure that innovation can be translated into growth and green transition at scale,” says Anne Lerche.

The report is part of the OECD’s Science, Technology and Industry working paper series and its analysis and conclusions are the OECD’s own. It has been realised with the support of Think Tank EUROPA.

Key findings from the OECD analysis

The Working Paper offers a detailed comparison of the two regions’ industrial structures and framework conditions. Among its findings, the OECD highlights:

• Comparable levels of greenfield foreign direct investment in the EU and the US, but significantly higher levels of patenting and venture capital investment in the United States.

• Strong European bio-manufacturing infrastructure, though facing increasing competitive pressure globally.

• Similar access to skilled labour across both regions, alongside persistent bottlenecks – particularly at technician level.

• A decline in the number of new biotech start-ups in both regions, from a significantly higher baseline in the United States.

• Structural challenges in the EU linked to regulatory complexity, fragmentation and lengthy approval procedures.

By making this report available, the Alliance for BioSolutions aims to contribute constructively to the ongoing European debate and to support a policy framework that enables innovation, investment and industrial scale-up in biosolutions.

Access the full publication at OECD's website through this link: A comparison of the innovation and regulatory environments for biotechnology and biosolutions across the European Union and the United States | OECD

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