The structure of the biotechnology sector

In 2008, a total of 501 companies in Germany dealt exclusively or predominantly with modern biotechnological procedures and are thus defined by the OECD as dedicated biotechnology companies. Here, the figures have grown slightly compared to the previous year (496). For a further 92 companies, biotechnology is a business activity alongside others. The OECD defines these as other biotechnologically active companies. Included in this group in particular are pharma firms as well as chemicals and seeds manufacturers. They are active in the fields of health (42), agriculture (33) and industry (11). Unless otherwise indicated, the following information from the survey refers exclusively to the dedicated biotech enterprises.

Geographical distribution of dedicated biotechnology companies. The size of the symbols is proportional to the number of companies located in the region. Clusters are shown cumulatively.Source: biotechnologie.de

Founding dynamics show slight decline

Regarding the founding dynamics of the last two years, they showed a slight decline. Only 15 new companies were founded in 2008, as little as in 2007. In 2006, there had been 31. Nevertheless, some newcomers have hit the market especially in the field of industrial biotechnology. Most of which developed near the five clusters aided by the BioIndustry 2021 competition of the BMBF. In contrast, the number of companies no longer operating (due to insolvencies and mergers) has leveled off to about a good dozen (2008: 16), approximately the same as in the previous year (2007: 13). This is a clear decrease compared to the years before. In 2006, it still reached 33. All in all, the number of biotech companies remains nearly unchanged and has stabilised in Germany at around 500.

Geografische Verteilung der Biotechnologie-Unternehmen nach BundesländernSource: biotechnologie.de

On average, these companies are 8.6 years old. Approximately 30% have been active for more than ten years, whereas 13% were founded in only the past three years. To date, the largest founding wave in German biotechnology was following the BMBF’s 1996 BioRegio competition, which was active from 1997 to 2001. About 60% of all biotech companies operating today began their business activities around this time. The outcome of the BioRegio competition is also reflected in the current distribution of companies, where three of the four largest biotechnology clusters are found in the winning regions – Munich and Rhineland (Cologne). The region of Berlin-Brandenburg, with 80 enterprises, as well as Baden-Württemberg, with 77 companies, are also well established as important hubs on the German biotechnology landscape. Most of the other biotechnologically active companies are situated in the federal states North Rhine-Westphalia, Hesse and Lower Saxony, reflecting the strong industrial focus of the German far west on the one hand, as well as the agricultural and nutritional focus in Germany’s centre on the other hand.