Globally, the biotechnology industry is recognized as an economic engine that provides high wage, high-skilled jobs across a broad range of occupations. There is an easily recognizable correlation between economies with pro-innovation policy frameworks and those achieving strong biotechnology outputs.
More than in any other industry, the interplay between biotechnology innovation and regulation has important social and economic development implications. As developing nations seek to grow this industry, they must strike a balance between incentivizing innovation and delivering optimal return on investment without dampening economic efficiency.
For India, the biotechnology industry holds great potential to substantially propel economic growth and deliver on its long-term developmental goals. However, the government of India only spends around 1% of the country’s GDP on healthcare. That is lower than all other emerging economies and even lower than several heavily indebted nations. India’s vast economic growth over the last decade has clearly not been matched by an equivalent increase in public spending by the government.
Against this backdrop, the Institute for Competitiveness has issued a report analyzing the Indian biotechnology sector as it compares to other emerging biotechnology economies, such as China. The report addresses four areas essential to biotechnology industry growth – infrastructural facilities, access to capital, legal & regulatory system and human development.