ETLA’s (a private, non-profit economic research institute) new report “The Finnish Biotechnology Sector: Status, Growth and Challenges” presents, for the first time, a comprehensive overview of the scope and dynamics of the industry, reports Finnish Bioindustries.

The biggest hurdle

Finland hosts 834 biotechnology companies, with a combined turnover of EUR 7.1 billion and 19,400 employees. At the core of modern biotechnology are 124 companies, generating EUR 220 million in value added and employing around 2,800 people. Growth appetite is exceptionally strong, but the biggest hurdles are regulatory approval processes and weaknesses in sales, marketing, and distribution.

Modern biotechnology

In the report, modern biotechnology refers to technologies based on molecular biology (e.g. drug and diagnostics development, enzymes, biomaterials, synthetic biology). In Finland, the enzyme sector is particularly strong, while value creation is concentrated in pharmaceuticals, diagnostics, and industrial enzymes.

Finland’s modern biotech field is young, the reports shows. Four out of five companies are under 15 years old. According to survey results, 76% of companies are strongly growth-oriented – far higher than the business sector average (19%). Still, growth faces obstacles: 58% cite regulatory approval processes as a barrier, while commercialization challenges remain, especially in sales and marketing expertise and the functionality of sales/distribution channels. Financing also slows growth: equity financing is the most critical for many investments, while debt financing is less emphasized.

By streamlining regulatory processes and strengthening commercialization skills (sales, marketing, channels), Finland has excellent conditions for significant growth, states Finnish Bioindustries.

download the full report