Biotechnology Industry: Innovation, Strategy, and Future Prospects

This essay offers a comprehensive analysis of the biotechnology industry, exploring its evolution, current trends, and future prospects. It delves into the impact of biotechnology on various sectors, including healthcare and agriculture, highlighting key innovations like genetic engineering, drug discovery, and new technologies. The essay examines the global competitiveness of the industry, focusing on the roles of the United States, Germany, and China, while also addressing the challenges and opportunities faced by biotechnology companies. Furthermore, it provides a SWOT analysis, assessing the strengths, weaknesses, opportunities, and threats within the industry. The essay also discusses the impact of biotechnology on drug discovery, the changing landscape of clinical practice, and the influence of new technologies such as CRISPR and gene therapy. Overall, the essay provides a detailed overview of the biotechnology industry, its challenges, and its potential for future growth.

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Industrial biotechnology in nowadays is the best method to get prevention from the
pollution and conservation of resources. Biotechnology has a higher impact on the health care
industry. Industrial technology provides businesses, which can operate at a reduced cost.
Biotechnology industry in the last past year’s shows that human is used organism in the form of
microorganisms to produce products like beer, cheese, and wine. In earlier times, the
biotechnology industry relies on the environment ideal organism like in the production procedure
the microbial inoculum used in the form of lactic acid bacteria. The productions of sour milk in
the ancient times were left upon the micro-evolutionary forces. Earlier the success and level of
profit was depending on the isolation process (Key Life Science Industry Trends in 2019, 2019)
The current condition of the biotechnology industry, they also use traditional plant bleeding
techniques with the micro-evolutionary forces, for example, DNA technology. Current
biotechnology in the genetic engineering produces biotechnology enzymes example, cellulase
may use in the detergent and textile industry (Sertkaya, 2016). There is a new reform in the
biotechnology industry as in the genetic engineering developed biological cells, microorganisms,
and cells. In the current era of biotechnology, it finds new elements and genes and how will they
work. Biotechnology industry also finds new ways in transgenic animals and plants. In recent
times, the biotechnology industry developed many techniques such as labeling and detection,
directed mutagenesis and nucleic acid amplification (s-ge.com, 2018).
Now the discussion is on the medical and agricultural biotech markets, this market plays a
major role in the biotech industry. Biotechnology applied into different areas like industrial
manufacture of chemicals and bioremediation. The production of chemicals and bioremediation
in this industry is limited and specialized (Schuhmacher, 2016). This industry is under the
biotech revolutions such as new development programs and to innovation strategies to produce
organisms and biomolecule. The industry of biotechnology develops a new method of drug
development in pharmaceutical companies that not simply integrated with a chemically focused
approach. Many start-up companies come into the biotechnology industry in recent years. Many
innovation hubs grow in the United States in the last years. Due to the innovation in the
biotechnology industry, revenue is increase to $150 billion annually. This start company has
focused on proteins or genes of a particular disease that use a target in drugs and diagnostic
markets (Bedroussian, 2011).

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Medical biotech companies have their research programs on biotechnology for drug
discovery and other medicines. Along with pharmaceutical companies, other companies as small
companies also shift their focus on drug development and new clinical diagnostics. The customer
market base in the biotechnology industry in increasing day by day so due to this many emerging
companies developing research programs in the industry.
Further discussion is on the agricultural biotechnology, the same drug development method
can also apply in this industry. As compared to other companies, there are less agriculture
biotech startups. They technological reforms in biotechnology industry did not affect too much
agricultural biotech companies. The major working of the biotechnology industry is to cultivate
crops and livestock to optimize genetics. The other working of this industry is to improve yields
and other convenient new methods. Many agricultural biotechnology companies integrated
Research and development programs such as Dow and Monsanto (Cockburn, 2001).
International leadership in the biotechnology sector
The United States, the biotechnological industry in the US have a long industry in
pharmaceuticals and medical devices. The United States entered into the partnership with the
universities, potential entrepreneur and large firms with the motive to gain access to venture
capital. The United States performs a leading role in the biomedical industry with flexible
government funding. The US continues to provide innovative technologies example, they are
attracting embryonic stem cell leading researchers in their industry. The United States will
remain a leader in the biotechnology industry by adopting correct policies in commercial
application and production. United States has potential policies and procedures in the R&D
department. The United States has forward-thinking methods in policy, regulation and
government funding (Diehl, An Overview of Biotechnology and the Biotech Industry, 2019)

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Figure: US drug production
Source: (bio.org, 2019)
The United States maintained its leadership by addressing environmental challenges and
innovative manufacturing processes. The United States increased productivity in the agricultural
sector of biotechnology while growing jobs and security. The United States is currently a leader
in the biotechnological industry but at the end of 2020, China has the opportunity to overtake the
position by investing in research and development department. The future prospects of the
United States in the biotechnological industry as they adopted IGEM synthetic biology
competition. The Boston is a powerhouse of the United States in the biotechnological sector. The
United States introduced 1,896 new drugs in the biotechnological sector (Damond, 2018).
Germany has a group of 580 biotechnological companies. The biotechnological industry of
Germany earned EUR 3 billion annually. The major part of the revenue Germany invests in its
research and development sector. Germany has a significant method to develop customized
solutions. The biotechnological industry of Germany has a high level of innovation and
technology. One of the different features of the biotechnological industry of Germany is they did
not innovate splendid isolation. Germany biotechnological company invests 344 billion annually.
Germany biotechnological companies work with the overseas partners and members to bring the
leadership in the biotechnological industry.
China is also a leader in the biotechnological industry by innovating the new molecules and
innovation in biotech. China biotechnological industry addressing the ways to fight with the
diseases and this step of China proves why they are leaders in the biotechnological industry. The
biotechnological companies of China have a set of international standards to develop the follow

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on biologics and biosimilars. The biological industry of China has a turning point in last some
years as it finding ways to cure cancer, diabetes, and neurology, for example, 42 new cancer
drugs introduced by China (Ellis, 2018).
Further discussion is on the impact of biotechnology on drug discovery; biotechnology
has a potential impact because of the development of small-molecule drugs and new
biopharmaceuticals. Innovation in drug discovery happened because of biological effect in the
appropriate testing. The advancement of DNA technology has shifted from the scientific
invention to pharmaceutical discovery procedure. For the treatment of life-threatening
indications biotechnologically derived the chronic replacement theories. As a result, innovation
in the biotechnological industry includes a better understanding of disease processes and the
evolution of the new treatments. The major impact of drug discovery includes development in
tools such as microarrays, rational drug design, and ligand receptor. There are several novel drug
classes introduced such as cancer vaccines and antisense strands ( Handfield, 2015).
Change in the drug discovery, as scientific knowledge developed by the biotechnology.
The major change in the biotechnological industry shows that the 5000-10,000 candidates
generating a single drug molecule on a daily basis. Due to the high prices of drugs US
biotechnological companies investing less in the research and development operations. In 2017
and 2018, growth has been increasing on the global level. Cell therapy and gene editing are
innovations of the biotechnological industry. Biotechnological industry increased its R&D
efficiency. The biotechnology industry has come far by enhancing the knowledge of disease and
patient or further interactions with therapeutic molecules.
Biotechnology industry in Europe, have different strategies as they use an interdisciplinary
approach to use renewable biological resources and environmental protection methods. In order
to improve the global public health biotechnological companies using advanced technologies
example, small companies in the biological sector are growing faster compared to the other
nuclear companies. Synthetic and transgenic technology is using by small companies to bring
innovation in the biological industry. The biotechnological sector is Swiss has potential
leadership in the biotechnological industry. Swiss is also providing employment opportunities by
employing 15,000 staff. In 2016, there are 281 companies in the biotechnological industry of
Swiss ( Heebink , 2017).

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The scale of change in clinical practice of biotechnology sector shows that there is a
substantial change in the drug targets by biological companies. Biotechnology companies
bringing change in the genetic tests by supporting early interventions. The international
biotechnology industry has a large range of pharmaceuticals companies with diverse activities
such as crop pest-resistant, genetic mapping for livestock breeding in the biotechnological
industry. Small and large biotechnological companies have intensive policies for research and
development for pharmaceutical companies. Many biotechnological companies operating in
different other countries with the strategy of venture capital, collaborative agreements, an IPO
(initial public offerings). The pharmaceutical companies have specialized in-house R&D
resources and significant production and distribution processes. Novartis International AG,
Roche Holding AG, and Gilead Sciences Ltd are leading companies of the biotechnological
industry. The biotechnological sector has different parts such as environmental technologies,
human health technologies, industrial technologies, and agricultural technologies. The major
operators used molecular and cellular, living organism’s method to develop or grow the products
that utilize in industrial, diet, agriculture and medical production ( Heebink , 2017).
The key industry changes in the biotechnology sector; this industry is rapidly changing
nature. This industry is affect by regular innovations and global challenges. The example of a
major change is CRISPR and gene therapy because of this major change company is facing
challenges of regulatory laws and regulations and patent expirations. The FDA conducting
regular checks in the manufacturing of medicines and other clinics in emerging economies
changes the security guidelines in the biotechnology sector. There is an innovative change in the
research department of pharmaceutical companies as they increase their research in
immunotherapy and microbiome. Genomic research gives pharmaceutical companies a better
understanding of the disease, development in treatments and improved diagnosis (Hopkins,
2007).
SWOT analysis shows the changing environment of in the biotechnological industry:
Strength of the biotechnological industry is physical and human capital components that are
under control of the biological industry. The major strength of biotechnological companies is
High return on return on investment (ROI) and low staff turnover. Laboratory equipment of
biotechnological companies is comparatively low (Kashangura, 2018)

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The weakness of the biotechnological industry, regular innovative change in the industry creates
problems for biotechnological companies. This industry has high-risk because of regular change.
Medical equipment of biotechnological companies is very costly that increases the cost of the
company. Low staff morale and poor branding are weaknesses for the pharmaceutical firm.
Opportunities for the biotechnological companies, which means a chance for companies to grow
and take competitive advantage. The major opportunity for biotechnological companies is using
innovative public research. As we know, consumers are more health conscious these days so the
company can use this as an opportunity. Due to the health, conscious nature of customers’
demands for the pharmaceuticals products is increasing. Changing in the standards of food and
drugs administration and health care norms is also an opportunity for the companies
(Schuhmacher, 2016)
Threats for biotechnological companies, environmental forces are also a threat for companies.
Changing government regulations and declining economy may create threats for companies.
There is a high level of cost is involved in the research and development part of the company.
Biotechnology companies also have a threat from competitors.
New technologies in biotechnology companies
Insect-resistant crops are new technologies in the biotechnology industry; these types of crops
mainly indulge in crop plants. Commercialization is also a new step taken by the companies, for
example, Bacillus thuringiensis. Patents are very important while implementing new
technologies to prevent their products from the copy ( Mowery , 2019).
Herbicide-tolerant crops are upcoming new technology in the biotechnology industry. Many
crops are included in this new technology such as IMI corn and Roundup Ready soybeans. New
technology in the biotechnology industry helps to sustain the agricultural industry and reduce the
sacrifice of animals in the industry.
Virus-resistant crops are not developed and it is under development process. New technologies
developed to fight with the fungal disease and nematodes. In this new technology, the production
of grows squash and Monsanto’s potato is included (Niosi, 2005)

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The value chain of the biotechnology industry, leading biotechnology companies must cop-up
with the trends in the global competition, new procedures, and pricing pressures. The companies
must fulfill all the new regulation which stated by the government. The biotechnology industry is
going under major value chain transformation. The supply chain of pharmaceutical companies
includes pharma track and travel. The major objective of biotechnology companies in the value
chain supply is to maintain the temperature. The biotech companies improving the source
structure in their set up. Biogen Idec is one of the famous pharmaceutical co. earns $4 billion
annual revenues with the improved supply chain.
Key biotechnology drivers for companies in 2018, It has been a tough year for the
biotechnology companies because of the high-risk factor. The biotech industry entered into 2018
with strategic missions and procedures. In the upcoming months, the prices of drugs will reduce
by the government with the efficient procedure of the drug approvals. Heated mergers and
acquisitions are new key drivers for the biotechnology companies. There will be efficient growth
in the biotechnology industry. The evolution and sustainability of the pharmaceutical industry
majorly depend upon the micro and small-scale companies to attract good investment.
Biotechnology companies adopt the Global Leadership program to reduce the impacts of
innovation in new products. Through this program, Biotechnology companies can easily adapt to
the change in the industry (Thersa, 2019).
International competitiveness, business strategy, and innovation
Vertical model and platform model is a business strategy for the biotech companies and these
strategies help the companies to earn the revenue on several levels of business. The vertical
model can efficiently use to dominance the single market. In simple words, this model helps the
company to earn profit by depending on each other departments. For example, raw materials,
bioprocessing, Production Company, and storing and packaging companies all depend on each
other. The platform model is a business strategy of biotech companies in which they enhance the
technology stage and licensing it. This model helps the company to survive long-term in the
market existing exclusively on licensing revenues. This model used by biotech companies as a
“service provider”. This model is different from other models as it maintains uniqueness in
innovative products and less expensive for companies (Pisano, 2018).

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Fully integrated pharmaceutical is also a business strategy for biotech companies. The main
object of this model is to enhance the quality of pharmaceutical products. In this model, the
inventor follows the value of an invention. The other strategies of biotech companies are they
evaluate the company’s skills and value and make improvement in them. The biotech companies
for growth collaborate and support on the international level. To adapt the innovation change in
the biotechnology industry it builds the strong team and expertise in the management. To achieve
the goal company maintains an efficient relationship with its external contact researchers. Better
communication and flexible culture is also a strategy of biotech companies. Biotech companies
maintain a strong team-focused approach and encourage innovation in the company (Renkoski,
2012).
Figure: Biologic drugs
Source: (Ogbru, 2019)
The biotechnology sector is more complex in nature but provide wellbeing to the peoples
through innovation in the medicines, treatment, and bio products. The USA is a major player in
the biotechnology industry with leading companies like Johnson & Johnson with the annual
revenue of $74.3 billion. USA is a leader in the global markets because the major investment of
biotech companies is in the R&D department. The biotech companies in the USA easily adopt

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the innovation change and evolve the restructuring in the industry. The USA market share in the
global biotechnology company is 16 percent. Thee chronic disease treatment is innovation in the
biotechnology sector in which 16,000 patients enrolled because of the efficient performance of
R&D. This industry gives job opportunities to 3.4 million people in the economy. The demands
of medicines are increasing day by day because of demographic conditions. The expected growth
rate of US companies in the biotechnology industry in the next five years is 2 percent (Timothy,
2019).
It concluded that the biotechnology industry is now exceeded the research expenditures in the
R&D department. Nowadays biotech companies in the industry pursuing the developments of
medicine and drugs. Nowadays biotech companies are more investing in the research and
development to achieve the goals and objectives of the biotechnology industry (Yoav , 2003, pp
1174-1186 ).

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