Promising new developments in the Netherlands

Only a few years ago, the Netherlands was one of the leading countries in European biotechnology. Nowadays it occupies seventh place in the European ranking because biotechnology has grown more quickly in other countries. However, The Netherlands has a relatively positive climate for biotechnology. In a recent policy paper the Dutch cabinet expressed the intention to 'stimulate the development of biotechnology in a considered way'. Although the debate on biotechnology is growing, public opinion is favourable to the technology. Combined with a broad scientific knowledge base this result is a good foundation for new growth in Dutch biotechnology. Several organisations are taking action to stimulate further growth.

The Netherlands has a good public scientific base in medical and healthcare biotechnology. Eight Dutch universities are involved in research in this area. These and other universities are also conducting a vast amount of research in related areas like molecular cell biology, virology, immunology and pharmacology.

However, the number of commercial pharmaceutical companies remains limited. In recent years, though, the numbers of Dutch biotechnological companies in healthcare and pharmaceuticals has started to grow and there are now about 50. Many started recently in areas such as genetherapy, the development of platform technologies, diagnostics, sequential analysis and the production of monoclonal antibodies.

Stimulated by the subsidies provided by the Dutch government, plant bio(techno)logical and other agricultural research has grown in every field. The main focus for this research is the Wageningen University and Research Centre, especially in genomics research. In addition, there are about 30 Dutch branches of large life sciences companies involved in crop improvement. Research for these smaller companies is usually done by specialised institutes and companies.

The development and application of biotechnology in animal breeding is relatively small in The Netherlands compared to plant biotechnology. Two research networks and two research schools are working on food biotechnology in The Netherlands. In addition, large food and food ingredients companies are conducting research in food biotechnology with industry and the scientific community work together.

Clusters of biotechnological activity

Commercial biotechnology in The Netherlands is clustered around the centres of scientific research. Leiden was one of the first strongholds with its Bio Science Park near to the university and its focus on biotechnology and medicine. Several biotechnology companies were formed around the Rijksuniversteit Groningen. Other companies in Groningen are working in environmental biotechnology, such as bioremediation. The Graduate School and Research Center BioCentrum Amsterdam is another important centre with research in biomolecular sciences and biotechnology. Amsterdam and its surroundings is home to a number of biotechnological companies and the Wageningen region has a world-renowned reputation in agricultural research. Wageningen University and Research Centre has nine separate institutes. These centres conduct research in agriculture, nutrition, nature and the rural area. In this region there is also some commercial biotechnological activity. In Lelystad a new BioScience Park has opened recently. This park is targeted to agricultural and pharmaceutical companies.

Public attitude

Public attitudes to biotechnology are more positive than in other European countries. Although people have some concerns, most are convinced that the benefits of biotechnology are high and the risks low. They expect to benefit from this science within the next five years. Applications with clear benefits can count on support in The Netherlands. Most Dutch people believe biotechnology will produce new medicines. There is also widespread support for biotechnology to replace chemicals in agriculture, to produce bio-plastics and to clean environmental pollution.

Governmental attitude

During a conference organized by the American embassy at the beginning of 2000, three Dutch cabinet ministers declared their support for biotechnology funding. The joint message was a powerful new signal about the benefits and possibilities of biotechnology. In September, five ministers presented the Integral Policy Paper on Biotechnology on behalf of the cabinet. This policy paper shows the intention of the cabinet to 'stimulate the development of biotechnology in a considered way'. Considered means that possible risks have to be acceptable in relation to the benefits of a biotechnological application. More concrete proposals of the cabinet are the banning of antibiotic resistance markers in crops, a public debate on biotechnology and food as well as measures to stimulate research and business in biotechnology. There should be a parliamentary debate on the policy paper next year.

Stimulating business

During the last decades of the Twentieth Century the government did not stimulate biotechnology as strongly as in other industrialised countries. However, earlier this year the Dutch Ministry of Economic Affairs presented the Actionplan Life Sciences directed at creating new business in biotechnology. This Actionplan is based on the answers to fundamental policy questions like: What makes a region successful in developing life science business? This question was addressed by many authors 1-7, and the emerging key success factors were:

  • Presence of seed and venture capital

  • Presence of a stock exchange for floating

  • Good fiscal regulations for young companies

  • Physical support facilities

  • Human resources of sufficient quality and quantity

  • Local availability of factors such as knowledge & information

  • Local availability of market pull factors such as large established industry nearby, which will act as the main customers of new small companies

In a recent report 8, commercialisation of life sciences in the Netherlands was compared to that in six other regions in the world. The results are represented in the table opposite. From this comparison, several recommendations resulted...

The Ministry of Economic Affairs should:

  • Bring money, knowledge, entrepreneurs & coaching together

  • Involve local governments

  • Provide independently managed seed funding

  • Involve a charismatic biotech manager

Universities should:

  • Let role models give entrepreneurial courses

  • Increase awareness about patents and their possibilities

  • Let scientists be entrepreneurial

  • Consider life sciences enterprise fellowships

The result of this study was that the Dutch government designed a programme to overcome the distance between the Netherlands and regions such as Boston, USA and Cambridge, UK. Government involvement can be extremely beneficial for the development of new entrepreneur-ship in high tech. In Germany, where the government has a very generous policy on the support of start-ups in biotechnology, 450 new companies were created in life sciences since 1985, and the market capitalisation of German biotechnology rose from DM 4 billion in 1999 to DM 18 billion in 2000. The Dutch Ministry of Economic Affairs dedicated Dfl 100 million (approx. Euro 45 mln) for the period 2000-2004 to stimulate entrepreneurship in life sciences.

This Actionplan Life Sciences is now named BioPartner because people involved want to be a partner in the creation of new life sciences business. The money will be used in five instruments, aiming at the creation of new start-ups:

  • BioPartner Network is dedicated to the stimulation and facilitation of entrepreneurship in life sciences in general in the Netherlands

  • BioPartner First Stage Grant is a subsidy that can be obtained by a research organisation together with an employee. This employee can then dedicate up to two years to transferring a promising idea into a business plan

  • BioPartner Facilities Support is designed as a revolving fund; the money provided can be used to buy equipment or facilities in an earlier stage than would be possible otherwise. The money earned by using the equipment in contract research should provide for paying back the loan

  • BioPartner Centers will be built in at least five towns; they will provide adequate housing, support, permits, facilities and so on for at least 10 start- ups in life sciences

  • BioPartner Start-up Ventures gives seed money (for equity) to starters in life sciences, provided that other private investors invest similar amounts.

These five instruments should result in at least 75 new start-ups in life sciences on top of those that would have emerged without government support. The programme came into operation in the middle of 2000 and the first clients will have received their money by the end of 2000. In addition to the Dfl 100 million of the Actionplan Life Sciences, the Dutch government will also provide research subsidies. In 2001 the Dutch government will decide on extra subsidies for genomics research.

Masterclass Biobusiness

Another initiative to stimulate business in the Netherlands was taken by Niaba, the Netherlands' Biotechnology Industry Association. This year, the association organized its third annual Masterclass Biobusiness in close co-operation with de Baak, Management Education Centre of VNO-NCW, one of the major Dutch employer's organisations. This Masterclass offers biotechnological knowledge as well as managerial and entrepreneurial skill to everyone who wants to approach biotechnology in a more entrepreneurial way. It has already proven to be attractive and useful to many scientists. It will enhance the chance of success of biotech start-ups and make employees of larger companies more business-minded. Niaba and BioPartner have started talks to explore ways to organise the next Masterclass in 2001.

BioPartner

  • Dr. ir. R.M. (Nettie) Buitelaar,

  • tel: +31 318 47 84 54,

  • buitelaar@biopartner.nl

Niaba

  • Drs. R.T.A. (Rob) Janssen,

  • tel: +31 70 327 04 64,

  • janssen@niaba.vnci.nl

Table 1
Full size table