New-Zealand's bio-tech industry is flourishing and the government is dedicated to speeding up the development of this knowledge based industry. The opportunities for investors will continue to grow as a result of the government taking a series of positive steps to promote the growth. It has established a US $ 40 m venture investment fund specifically for the development of bio-tech sectors.
Biotechnology has been recognized by the NZ Government as a sector with the potential to make substantial contributions to social well being and economic growth of the country. Here, it has been included in the Growth and Innovation Framework. The NZ government's Biotechnology Strategy was released in 2003. The primary objectives of the strategy involve promoting growth of the sector to raise economic and community welfare. It also focuses on the regulations that offer robust safeguards without obstruction innovation.
In current times, most of the biotechnology research and related business is concentrated on health and well being related applications and knowledge. The NZ government has applied no restrictions on the percentage of equity a foreign investor can have in biotechnology ventures. This sector is poised for high growth due to many reasons. Biology based industries account for 60% of gross national product. Biotechnology industries in NZ have become world leaders due to investments in genetic management, process development and land management. This past foundation of scientific achievement gives the current investor a competitive edge in biotechnology projects.
Biotechnology Industry has a legacy in NZ as the country mainly depended on commercial exports of bio tech products. NZ has a unparallel environment which is supported by rich natural resources. This has invariably provided the building blocks of world-class biological science. The development has been cemented by the fact that successful Governments have supported the increased investment and development of biological research. Currently the primary focus is focused on research areas to develop medium term commercial applications in biological sciences. The government has many ranges of grants that can be availed by local and international organizations.
The royal commission of inquiry has stated in its report that genetic modification and its application need to be supported and NZ stands to miss huge opportunities if it fails to do so. This provides sufficient evidence that potential investment in biotech industries will be welcomed and supported in NZ.
Setting up a biotech industry in NZ has many advantages.
• It has a good supply of animal obtained biological materials
• Good supply of marine derived natural products
• A constant source of raw materials for human and animal pharmaceutical products.
• Manufacture of wide range of blood based products such as antibodies and proteins.
The cost of biotechnology research and development facilities in NZ is 40% to 50% less than Europe and USA. Thus, this serves to be a great advantage for foreign investors who are looking for cost efficient research and development. The cost structure of clinical studies in New Zealand is also quite attractive. Companies can cooperate with New Zealand research groups that have strong foundations and brief history in the biological science field. Affordable access to bio-prospecting facilities, pure raw materials and NZ unique flora are some of the distinct advantages offered by NZ to foreign investors looking to invest in biotechnology projects.