Tracking progress: Two approaches to biotechnology development – Cases from Central Europe

Abstract

A number of emerging economies increasingly expend resources to improve national innovative capabilities and create knowledge economies through the development of biotechnology industries. Standard measures and ways of tracking biotechnology industry progress, such as those used by the OECD, were designed for developed economies. In this paper we review critically a recent report funded by the European Union which also assesses biotechnology industry development in the new member states of Central Europe. Going beyond the report we identify additional characteristics important for an evaluation of nascent biotechnology industries and apply them to Hungary and Poland. Our analysis reveals that the two countries are pursuing different approaches to biotechnology industry development with Hungary following a relatively well-funded national strategy of launching a biotechnology sector specialised in innovative drug discovery whereas Poland has adopted a more hands-off approach. Developing appropriate measures and tools to monitor the potential and progress of an emerging biotechnology industry can help avoid expensive and wasteful policy failures and also provide investors with more reliable information on which to base their decisions. However, those measures should take into account the differing policy objectives and national strategies pursued by different countries.