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Country Focus

Biotechnology in Sweden

03.07.2007

The biotech scene in Sweden can consider itself lucky: Great Britain aside, no other country has such a liberal attitude towards scientists. A swirling debate about stem cell research, as experienced in Germany, is simply not conceivable in Sweden. Largely owing to these basic conditions, the majority of Swedish biotech companies concentrate on medical applications, which are developed for the market with the assistance of outstanding research facilities. Nevertheless, fresh capital is increasingly hard to find in this small northern country. This is particularly true for companies in early development phases, for whom almost no investors are forthcoming. Tax breaks for research-intensive companies have therefore been demanded for some time. Many have been alarmed by the example set by Cellartis: The stem cell lines manufacturer recently shifted its production location from Sweden to Scotland. And why? For tax purposes.

Research Landscape and Research Politics

Many important inventions in the field of biotechnology from the last 50 years have their origins in Sweden. In the 1940s, Sweden invented the first local anaesthetic, Xylocaindas, and a replacement for blood plasma - Dextran (Macrodex). The pacemaker and the world’s first artificial kidney were also developed in Sweden. The proton pump inhibitor Losec, for the treatment of ulcers, was the global top-selling prescribed medicine for four years during the 90s and is an example of the strong cooperative nature and strong networking ability of basic scientific research and industrial development in Sweden. In 1987, the world’s first human recombinant growth hormone, Genotropin (KabiVitrum and Genentech U.S.), arrived on the market.Das Karolinska Institutet in Stockholm mti Präsidentin Harriet Wallberg-HenrikssonLightbox-LinkSource: Lasse Skog/Karolinska Institutet

Renowned Swedish research establishment: The Karolinska Institute in Stockholm, pictured here with president Harrien Wallberg Henriksson. Source: Lasse Skog

Swedens R&D investment volume of 3% of GDP (Gross Domestic Product) makes it one of the more generous OECD countries when it comes to R&D funding. Of this, according to data from internationale-kooperation.de, 75% is spent by industry, whereas 25 % is granted to universities. In 2002, according to data from the Swedish Research Council, 3.8 % of GDP, or 9.2 billion euros, was invested in R&D as well as in university and university education. This puts Sweden, alongside Finland, at the top of the table of all OECD countries, followed by Japan (3%) and the USA (2,75%). The European Union invests a total of 2% of GDP on average (Eurostat 2006). In 2005, the Swedish government passed a National Biotech Strategy Program, by which, over a period of four years, scientific biomedical research in particular and biotechnology transfer will be strengthened with a total of 2.34 billion Swedish Crowns (approx. 252 million euros). From 2008, in order to keep Sweden at a world-class level in the Life Sciences, it has also been decided to begin investing 1% of GDP into basic research. VINNOVA (Swedish Agency for Innovation Systems) is one of the agencies coordinating targeted support measures for various sub-categories in the biotechnology industry on behalf of the government.

The scientists’ focus: Pharmaceutical development

The research that is underway is concentrated in particular on pharmaceutical development. Leading the way are the regions Stockholm Uppsala and Malmö Lund. Alongside, the regions around Gothenburg, Linköping and Umeå are also growing. The cluster region around Stockholm Uppsala, considered to be the largest Life Science cluster in Europe, alongside the Stockholm and Uppsala Universities, eleven university clinics as well as the outstanding Karolinska Institute, is home to over 2,000 scientists researching in the life sciences in the fields of applied microbiology, immunology, endocrinology, diabetes, infection and autoimmune diseases, neurosciences and cancer. Over 40% of all clinical studies in phase II and III in the region Stockholm Uppsala are carried out according to European Union GCP (Good Clinical Practice) standards. Good international networking is also standard practice for Swedish researchers. Furthermore, North European contacts - for example in the Baltic Sea network Scanbalt – are playing an ever stronger role.


Das Klonen basiert auf dem somatischen Zellkerntransfer: Dabei wird der Zellkern einer Eizelle entfernt und durch den Zellkern einer Körperzelle ersetzt.Lightbox-LinkDas Klonen basiert auf dem somatischen Zellkerntransfer: Dabei wird der Zellkern einer Eizelle entfernt und durch den Zellkern einer Körperzelle ersetzt.

In particular, stem cell research is one of the core areas of the Swedish research landscape, due in large part to the fact that therapeutic cloning is permitted in Sweden. Stem cell research is promoted by state institutions such as the Swedish Research Council or Foundation for Strategic Research and private funding mechanisms such as the Knut and Alice Wallenberg Foundation. Approximately 260 million Swedish crowns will flow into stem cell research between 2003 and 2008. The three most important research establishments working with stem cells are in Stockholm, Lund and Gothenburg. The Swedish government is supporting the creation of a national stem cell database at Sahlgrenska University in Gothenburg with 1.6 million euros. The database has as its goal the development of improved treatments for serious illnesses such as leukaemia. As a result of close cooperation in the field of stem cell research with the US National Institutes of Health (NIH), Sweden meanwhile is home to the largest number of embryonic stem cell lines worldwide - 79 established cell lines – just in front of the USA (75). In 2003, the Lund Centre for Stem Cell Biology and Cell Therapy, one of six competence centres in the field of Life Science, was created with public funds. With over 130 employees and nine research groups, it is one of the largest institutes in the area of stem cell research.

Industrial pilot plants for power production using wood chippings

According to data from GMO compass, between 1992 and 2007 there were a total of 95 approved scientific field tests with genetically modified plants in the area of green genetic engineering. The studies were concentrated on the cultivation of rapeseed (42%) potatoes (34%), followed by sugar beet (12%) and the model organism of green genetic engineering - the common wallcress Arabidopsis thaliana.

Aside from agrobiotechnology, traditional industrial biotechnology also plays a role, in particular businesses developing new techniques for biomass utilisation. As the paper industry in Sweden is highly important, a number of researchers are working on the European Union "Lignoboost" project, which aims to better utilise the waste wood product lignin. In the meantime, together with industrial partners, a first large-scale pilot plant has been constructed. The processes for lignin extraction may be optimised in such way that it could be used as a raw material for the enhancement of biofuels, by supplying electricity and heating for 1,300 households from an extraction of 4000 tons per year.

 
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Context

Companies:about 220

Main focus: Medicine und diagnostics

Companies association: Swedenbio www.swedenbio.se

Funding authority for applied research: Swedish Agency for Innovation Systems Vinnova

Funding authority for basic research: The Swedish Research Council VR
Foundation for Strategic Research  FSR

Special funding focus: molecular medicine, stem cells

Legal basis: therapeutic cloning allowed, no genetic engineering law 

Downloads

Status of Swedish Innovation and Financing System

SwedenBio Position Paper, 2007 Download PDF (350.7 KB)

Attraction of Life Science Financing: An international benchmark of investment incentives

Author: SwedenBio, Stockholm School of Entrepreneurship; 2006 Download PDF (481.6 KB)

Analysis of the Swedish Biotech Pipeline

Author: SwedenBio, Vinnova; April 2007 Download PDF (127.8 KB)