**2. Biotechnology in the global market and Brazilian government programs**

### **2.1. Biotechnology in the global market**

This technological progress has induced a new paradigm based on the development of a set of intensive knowledge on scientific technologies, which represent many applications of scientific discoveries, whose core is to develop an increasing competence to manage information and knowledge. In this contemporary setting, the intangibles assets such as knowledge (know how), patents, and intellectual capital become increasing value strategic elements to be the

Biotechnology as a highly scientific sector is one of the most knowledge-intensive activities in the contemporary economy, having a direct and indirect impact on regional and national economies. The phenomenon of growth in the production of biotechnological products is relatively new, and in the long term, the growth potential is probably associated with the greater diffusion and use of your products and processes due to its convergence with nano-

In this context, biotechnology is considered as one of the most important technological tools nowadays. It is considered a key "future-bearing technology" and its applications have contributed to the structuring of new economic and social systems [4]. In this sense, biotechnology appears to have the characteristics of a core technology, with the potential to underpin a

Biotechnology represents a set of technologies "that use biological systems, living organisms, or their derivatives to produce or modify products and processes for a specific use" [5]. Biotechnology features a multidimensional nature, involving different knowledges, scientific and technological. Indeed, biotechnology can be considered as the result of a scientific revolution that involves many disciplines. In other words, it is a "constellation of scientific revolutions" [6], which is based on different areas of knowledge such as molecular biology,

The large set of biotechnological methods along with its different forms of application results in different interpretations about the dimensions that compose the biotechnology [7]. It has helped to generate new high-impact services in various segments such as health area with impressive revolution in the treatment of diseases as well as the use of new drugs for humans. It is also possible to verify its impact on agriculture with the development of functional foods and the reproduction of plant species; in the chemical and petrochemical industries with treatments of

When assessing the potential application of modern biotechnology for the next 20 years, some authors assert that areas such as genomics, proteomics (spatial identification of protein structures), biomaterials, bioengineering, pharmacogenomics, genetic engineering, genetically

In view of these future prospects, the monitoring and research of scientific advances and trends in this area of knowledge have become essential for searching opportunities in research and development (R&D), as well as for potential innovations and business opportunities, in the developed countries and mainly in countries of emerging economies such as Brazil [2]. Countries with rich biodiversity, mainly South American countries such as Brazil and Colombia, have tried to develop national capacities in science and technology (through

wastes and wastewaters; and the sustainable use of biodiversity, among other areas [2].

modified foods, and synthetic biology will have a great impact on the future [2, 8].

center of contemporary forms of capital accumulation [2].

new technoeconomic paradigm.

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technologies, information technologies, and other applied sciences [3].

biochemistry, computer science, biophysics, engineering, and others.

For centuries, humans have used biotechnology in their daily lives. Biotechnology presents as the growth area and development products and technologies observed in different areas of economy, which use live microorganisms or parts of them [10], showing up as a promising area among the diverse emerging technological developments. Being a multidisciplinary area presents the possibility of new products and processes. The bioindustry has contributed to the economic and social growth by bringing new solutions to problems concerning to human and animal health, to agribusiness, the environment, and the creation of new materials. In these aspects, biotechnology is a technological innovation that also provides products or processes with social or commercial use [11].

As technological progress advances based on life sciences, the possibilities of obtaining products with higher added value or lower production costs increase. The most prospected areas of biotechnology are health (pharmaceutical) and agriculture (food) [2]. On the economic bias, biotechnology is a major focus of activities on research, development, and innovation in the developed countries and it is becoming increasingly central in developing countries due to the potential of exploiting great biodiversity [12].

For a long time, it has been emphasized about the biotechnology potential and the future full of innovations that it provides. However, today, we can observe that the largest potential innovators are in the United States and Europe (the United Kingdom, Germany, and France). Due to their investments in the chemical and pharmaceutical corporations they become owner of biotechnology companies, enlarge their capabilities of innovation, or maximized new products generation [13].

The biotechnology industry has been grown rapidly in recent years, more than doubled its worldwide revenue in the last decade, going from US\$ 8 billion in 1993 to US\$ 20 billion in 1999 [14]. According to the study presented in Ref. [15], the worldwide market for biotechnology resources moves expressive values of about \$ 410 billion per year. The worldwide market for biotechnology between 2002 and 2006 grew at a compound annual growth rate (CAGR) of 13.4% [16]. Figures in this market are not very consistent. According to the study presented in Ref. [17], the United States alone moved the biotechnology industry resources of US\$ 3.7 billion in 2009, being the market that moves much capital in this biotechnology market.

Regarding innovative effort, we can affirm that the United States is the country that spent more on R&D in biotechnology. In 2009, it spent only in entrepreneurial sector, US\$ 22 billion on R&D, followed by France, Germany, and Canada, with the total expense on R&D about US\$ 2.5, 1.3, and 1 billion, respectively [18].

In Asia and Pacific, among the countries that are more prominent, Japan is the most advanced in the biotechnology area, due mainly to the cooperation work developed by Japanese government, universities and private sector, directed especially to build an adequate infrastructure for innovative business *start*-*ups* [18]. After that the focus turns on Singapore, Taiwan, China, India, and Australia. The Chinese government, for example, invested about US\$ 40 billion in the biotechnology industry in 2012 and, the Singapore government hopes to increase 20% biotechnology investments in the next 5 years, that is, it is intended to spend about US\$ 12.5 billion in R&D in this sector [18].

### **2.2. Biotechnology in Brazilian government programs**

The biotechnology segment holds a special place among the priorities at government policies, as much for the developed country and as for developing countries. The wide set of opportunities created by biotechnology, especially in health and agriculture areas, show the essentiality of its development as competitive strategy and expansion input in international market, mainly in developing countries such as Brazil. Brazil is a country with great potential for the development of agricultural biotechnology because it has a wide biological diversity and is rich in plants, animals, and microorganisms [19]. Since the 1970s, the biotechnology applied in agriculture has been productive and economic relevance in the country.

This chapter focuses on the characteristics and development of biotechnology in Brazil and refers to the public investment, with the main aspects of the most noteworthy programs and financing structure. There is a governmental structure in the country directed for the development of the area. This structure is composed of the following ministries: the Ministry of Science, Technology and Innovation (MST&I); Environment and Agriculture; Production and Trade; and Health and Social Development. At the same time, the government also acts through its government agencies, the private sector, and academia [2].

The government policies to support the development and financing on biotechnology in Brazil have started since 1980 with the promotion of several programs dedicated to the area, the Integrated Genetic Program, which aimed at introducing some specific actions on genetic engineering. In 1981, the government officially unveiled the National Program for Biotechnology (Pronab) which was to consolidate public investments for maintenance of the research groups in areas related to the program.

In 1984, the Ministry of Science and Technology (MST) had created a wide program in order to support, finance, and develop strategic areas in the country. This program was the development support to Scientific and Technological Program (PADCT), cofinanced by International Bank for Reconstruction and Development (BIRD). Since its beginning, biotechnology has been seen as a strategic area for the scientific development in the country and, thus, established a specific subprogram to support it, the Biotechnology Subprogram (SBIO). PADCT started in 1985 and its actions were continued until the 2000s. At first, PADCT prioritized the development of some activities such as molecular biology, genetic engineering, and biosafety, without forgetting areas such as biochemistry, microbiology, and agronomy.

for biotechnology between 2002 and 2006 grew at a compound annual growth rate (CAGR) of 13.4% [16]. Figures in this market are not very consistent. According to the study presented in Ref. [17], the United States alone moved the biotechnology industry resources of US\$ 3.7 billion in 2009, being the market that moves much capital in this biotechnology market.

Regarding innovative effort, we can affirm that the United States is the country that spent more on R&D in biotechnology. In 2009, it spent only in entrepreneurial sector, US\$ 22 billion on R&D, followed by France, Germany, and Canada, with the total expense on R&D about

In Asia and Pacific, among the countries that are more prominent, Japan is the most advanced in the biotechnology area, due mainly to the cooperation work developed by Japanese government, universities and private sector, directed especially to build an adequate infrastructure for innovative business *start*-*ups* [18]. After that the focus turns on Singapore, Taiwan, China, India, and Australia. The Chinese government, for example, invested about US\$ 40 billion in the biotechnology industry in 2012 and, the Singapore government hopes to increase 20% biotechnology investments in the next 5 years, that is, it is intended to spend about US\$ 12.5 billion in R&D in this sector [18].

The biotechnology segment holds a special place among the priorities at government policies, as much for the developed country and as for developing countries. The wide set of opportunities created by biotechnology, especially in health and agriculture areas, show the essentiality of its development as competitive strategy and expansion input in international market, mainly in developing countries such as Brazil. Brazil is a country with great potential for the development of agricultural biotechnology because it has a wide biological diversity and is rich in plants, animals, and microorganisms [19]. Since the 1970s, the biotechnology applied

This chapter focuses on the characteristics and development of biotechnology in Brazil and refers to the public investment, with the main aspects of the most noteworthy programs and financing structure. There is a governmental structure in the country directed for the development of the area. This structure is composed of the following ministries: the Ministry of Science, Technology and Innovation (MST&I); Environment and Agriculture; Production and Trade; and Health and Social Development. At the same time, the government also acts

The government policies to support the development and financing on biotechnology in Brazil have started since 1980 with the promotion of several programs dedicated to the area, the Integrated Genetic Program, which aimed at introducing some specific actions on genetic engineering. In 1981, the government officially unveiled the National Program for Biotechnology (Pronab) which was to consolidate public investments for maintenance of the

In 1984, the Ministry of Science and Technology (MST) had created a wide program in order to support, finance, and develop strategic areas in the country. This program was the development

in agriculture has been productive and economic relevance in the country.

through its government agencies, the private sector, and academia [2].

research groups in areas related to the program.

US\$ 2.5, 1.3, and 1 billion, respectively [18].

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**2.2. Biotechnology in Brazilian government programs**

From the wide vision, PADCT aimed to build physical structures for research centers and development projects in cooperation in order to attract private investment, promote dissemination, and technology transfer from academic centers to the production sector. During this period, the first biotech products emerged that were human insulin, biodegradable plastics, biofilm, genetically modified plants, among others.

Early in the 1990s, both the government and the private sector have reduced the resources applied to biotechnology due to low commercial return of biotech products developed so far.

In 1999, the government changed the pathway of financing in Brazil through the creation of sources of fiscal financing from various economic sectors, called sectoral funds. In 2001, the biotechnology sector fund was created and its main objective was to ensure the continuity of biotechnology research, especially those considered as strategic for the country. Somehow, the creation of Biotech fund strengthens the National Program of Biotechnology and Genetic, established in 2000 and under MST&I responsibility. The program emphasized actions to "conservation genetic resources and development of biotechnological products and processes with applications in industries, agriculture, and human health". Several of these opportunities have been adopted as strategy of the project management in networking way in order to increase the flow of innovation and the results to society.

Among the many action plans applied from 2002, it is worth mentioning the following: Brazilian Genome Project, Structural Biology Network, Brazilian Proteomics Network, the development of biopharmaceuticals and immunobiology, and the development of new technological routes.

In 2004, the government using the Brazil's Industrial, Technological and Foreign Trade Policy (PITCE) pointed out biotechnology as the "future-bearing technology." On that political occasion, the Biotechnology Competitiveness Forum had created in order to put together all actors involved in the production chain in favor of strengthening industrial competitiveness.

Biotechnology research is funded by federal, private, and international agencies. The Organic Law of Science, Technology and Innovation (Decree No. 10.973 of 2/12/2004) defines some coordination organizations on the national level, and the Ministry for Science, Technology and Innovation (MST&I) represents the leading national organization [2].

From Biotechnology Competitiveness Forum, in 2007, begun the Biotechnology Development Policy (PDB), which established the National Biotechnology Committee (CNB). On the whole policy, structuring actions were defined in order to promote transfer of technology, investments, training of human resources, strengthen networks, regulatory framework, and to improve infrastructure for research centers and R&D. Examples of priority areas supported were: plant and animal breeding, food technology, bioinformatics and immunology, diagnosis and prospecting on biotechnology, and detection of genetically modified organisms.
