Biotechnology and agritech - growth industries

• State of the Sector
• Strategy
• Strategic Initiatives
• Operating Unit Initiatives 
• Key events
• Australia New Zealand Biotechnology Partnership Fund  

State of the Sector

The biotechnology sector plays an important role in New Zealand’s economy:

• Expenditure on biotechnology increased by more than 20 per cent between 2004 and 2005, now totalling more than $640 million.
• Biotechnology export revenue experienced more than 30 per cent growth in the same period.
• Biotechnology contributes $300-$400 million per year to the New Zealand economy through the primary sector. 

The sector has experienced strong growth and continues to build critical mass:

• Biotechnology now employs more than 2200 people in New Zealand, in 126 private and public sector entities.
• The majority of growth has come from the private sector, consistent with a vibrant industry in strong growth mode.
• There are 10 biotechnology companies listed on the New Zealand stock exchange and an additional four listed on the Australian stock exchange.

New Zealand’s biotechnology industry covers a range of niche sectors:

• Agricultural biotechnology accounts for 41 per cent of expenditure and 35 per cent of overall industry employment.  This is consistent with New Zealand’s global position in sectors such as dairy and sheep, forestry and horticulture.
• Medical devices and diagnostics represent 23 per cent of expenditure and 28 per cent of employment.
• Human health applications (such as functional foods and nutraceuticals) represent 17 per cent of expenditure and 23 per cent of employment.
• Industrial applications represent 19 per cent of expenditure and 14 per cent of employment
  

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Strategy

NZTE’s strategy to date has drawn heavily on the recommendations within the Biotechnology Taskforce Report May 2003

We will continue to draw on these recommendations, but our strategy moving forward will place an increased emphasis on support for selected projects.  This reflects the fact that a more mature sector now exists.

Biotechnology is a globally competitive industry.  The NZTE biotech sector team works in partnership with the industry, other NZTE sector teams, and numerous organisations around the world to help insure New Zealand continues to achieve industry growth: 

Access to competitive intelligence:

• Overseas market advice and information from our offshore offices
• Training and mentoring
• Market analysis and research
• Investment opportunities

Faster access to better networks:

• Advice and assistance through NZTE’s Beachheads programme
• Established strategic relationships programmes around the world

Direct funding/grant support:

• Economic Development Grant for Capability Building
• Economic Development Grant for Market Development
• Growth Services Fund
• Australia New Zealand Biotechnology Partnership Fund

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Strategic Initiatives

A Strategic Initiative as defined by NZTE, is a concentration of activity intended to exploit where New Zealand’s competitive advantage intersects with global trends.

NZTE has adopted eight cross-sector Strategic Initiatives to encourage growth in New Zealand’s economy.  The biotechnology sector team is focused on the following two:

• Integrated healthcare
• Creating value from the Primary Sector

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Operating Unit Initiatives

In addition to Strategic Initiatives, the biotechnology sector team is also involved in the following:

• Japan partnership programme
• North American Market Development Plan
• Bio 2008
• Supporting outward missions, e.g. AusBiotech and Medica
• Supporting a European biotech partnership with UK Trade and Investment
• Industry body engagement - www.nzbio.org.nz
• University of Auckland Master of Bioscience Enterprise sponsorship

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Key events

NZTE will be supporting New Zealand companies and organisations to attend the following key international event:

• Bio 2008 San Diego, California, 17- 20 June 2008 

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Australia New Zealand Biotechnology Partnership Fund (ANZBPF)

The Australia New Zealand Biotechnology Partnership Fund is intended to accelerate growth in the New Zealand biotechnology sector through facilitating joint activities in biotechnology development, marketing and manufacturing.

To read more about the sector and key organisations, visit MarketNewZealand.com and NZBio, New Zealand's biotechnology industry organisation.