The biotechnology research and production capabilities of the EU’s newest member states are stable and growing, according to a new report from the 14allbio project. Earlier this month, the 14allbio project, which is funded by the EU’s Sixth Framework Program, published a report prepared by the European Association for Bioindustries and Venture Valuation AG. “Biotech in the New EU Member States: An Emerging Sector” examines the biotechnology industry in the 12 new EU member states and two candidate countries.

There are 260 biotechnology companies in the 14 countries covered by the report. As the graph on page 6 illustrates, four countries—Hungary, Poland, the Czech Republic and Estonia—account for more than three-quarters of these firms. The report states that the biotech industries in these four countries are the most well developed among the 14 countries. Based on the report’s Development Capacity Index, which calculates the advancement of each country’s biotech sector, Hungary was ranked as the country with the most developed biotech sector, followed by Poland, the Czech Republic and Estonia. The factors given the most weight in the Index were technology-transfer capabilities, the presence of technology parks or clusters, and intellectual property protection and awareness.

The activity in which the largest percentage of countries in the EU’s new member states and candidate countries are involved is contract research and manufacturing. Twenty percent of the companies tracked by the report are involved in these businesses. Diagnostics and analytical services, and “other “services and suppliers each account for 19% of new member states and candidate countries’ biotech firms. Bioinformatics and bioelectronics, genomics and proteomics, and therapeutics represent 8%, 7% and 7%, of company activities in the countries, respectively.

Among the 14 countries covered by the report, Hungary has the largest number of biotech companies involved in biotech and R&D services at 55. The Czech Republic is home to the largest number of companies involved in biotech therapeutics, while Poland has the largest number of companies classified as “Biotech-other.”

Forty-three percent of biotech companies operating in the EU new member states and candidate countries are small enterprises, which employ between 11 and 50 people. Thirty-four percent of biotech companies in the 14 countries employ between 1 and 10 people. Fifteen percent are medium enterprises, employing between 51 and 250 people, and 8% are large companies, which employ more than 250 employees.

Small companies account for the largest percentage of biotech enterprises in Estonia, Hungary and Poland. Small companies represent 46%, 54% and 38% of all biotech firms in the respective countries. In contrast, in the Czech Republic, the largest share of biotech enterprises, 40%, employ less than 10 people.

In total, biotech companies in EU’s new member states and candidate countries employ more than 10,000 people, according to the report. Poland has the largest number of biotech workers (both R&D and non-R&D employees) with a total of 4,348. Hungary and the Czech Republic have the second and third largest number of biotech workers with 1,107 and 1,078, respectively.

R&D employees represent 19% of all biotech employees in the 14 countries. Among the countries, Turkey has the highest number of biotech R&D employees with 528. Hungarian biotech companies have a total of 481 R&D employees. As the graph on this page shows, these two countries account for more than half of the biotech R&D employees among the 14 countries.

Chart: Biotech Companies in EU New Member States and Candidate Countries by Leading Countries

Hungary 77

Poland 52

Czech 39

Estonia 29

Other 63

Chart: Biotech R&D Employees in EU New Member States and Candidate Countries

Turkey 528

Hungary 481

Poland 337

Czech 211

Other 366

Chart: Exports of Pharmaceutical Products

2006 2007 2008

Hungary 1,788.1 2,391.4 3,311.2

Poland 708.8 1,066.5 1,664.6

Czech Republic 761.4 1,021.5 1,260.4