According to a recent survey carried out by the Research Institute of the Finnish Economy, there were about 120 fully operating biotechnology companies in Finland at the end of 2001, i.e. ten per cent of the number in Europe.

Most of the development of biotechnology applications is in pharmaceuticals and diagnostics, but it is also taking place in food and biomaterials.

Biotechnology is a field where expectations are high. Financing is a crucial matter for biotechnology companies, because a considerable number of the products and services are only at the research and development stage.

Most of the Finnish biotechnology companies are young and at the start of their careers. Of the young companies that have been in existence for less than ten years 40 per cent are making a loss. If a company is still alive ten years after its establishment, it must be producing a turnover. Without the major pharmaceuticals companies the turnover in the bio sector is just under EUR 700 million; with the major companies it is almost EUR 2 billion.

Funding is crucial for biotechnology companies because a considerable number of the products are only at the research and development stage. In Finland young biotechnology companies are helped with their funding by the National Technology Agency (TEKES) and National Fund for Research and Development (SITRA). The sector has been extremely active in Finland in recent years, with both TEKES's technology programme policy and SITRA's investment policy contributing to this.

The bio sector is one of the most regulated industrial sectors in the world. In order to obtain sales licences, the quality and quality-control systems as well as the documentation for research, product development and production must be in accordance with regulations. Because the Finnish market is so small, most of the companies have their eyes set on the world market. The expression 'long term' typifies the bio sector: the research and development stage lasts at least five years.

Of the Finnish biotechnology companies 90 per cent expect to be exporting to the EU region in five years' time. Between 60 and 80 per cent expect to be exporting to North America and more than half to Asia.

The trend towards mergers, which has already started in the United States, is proceeding in Finland as well. More than 15 per cent of the companies have a Finnish or foreign company as the biggest shareholder.

Finland's capital spurts to the front in biotechnology

The Helsinki Business and Science Park and the business incubator at Viikki, which is in northern Helsinki, are combining their business operations and state-of-the-art technology. The expertise of Finnish biotechnology companies, which are scattered all over the country, is being supplemented by creating networks and collaboration at the national level.

Biotechnology companies in Finland are concentrated in the most important growth centres i.e. Helsinki, Tampere, Turku, Oulu and Kuopio. The objective is an increasing degree of networking and cooperation.

Finland's success in biotechnology calls for a sharp focus. The core areas are bioinformatics, new pharmaceuticals and diagnostic methods, biomaterials and functional foods. Finland is investing in quality both in both education and biosciences. Concentrating research and development work on the growth centres is also crucial.

In the space of ten years and with investment of EUR 150 million Viikki has developed into a Silicon Valley based on bioscience and food science. The European Food Authority has also been sketched in for the same area.

The science park is owned by the University of Helsinki, the City of Helsinki, SITRA and industrial federations. With support from the Government and the City of Helsinki Viikki has sprouted a scientific community that focuses not only on basic biological sciences operate but also applied sciences, agricultural and food sciences, forestry sciences and veterinary medicine. The National Veterinary and Food Research Institute and the Finnish Environment Institute are also moving to the area.

Viikki Food Centre, which belongs to the National Food Expertise Center (ELO), is the focal point for food companies in the Uusimaa and eastern Uusimaa regions and combines their research, development and training. The ELO's main target group consists of Finnish SMEs operating in the food sector. The whole of Finland is the operating area for the ELO, which has been networked nationally.

The business incubator Cultivator has been operating at Viikki for more than ten years, and another will start up at the beginning of 2003.

The gene technology and molecular biology expertise centre in Helsinki focuses on developing quality systems for bio companies, on national and transnational official regulations in its role as a regulator of business operations, and on ethical and social matters relating to marketing.

Finland is a unique target country for research into disease genes. In Finland there is a high standard of health care and the population is similar genetically. Pioneering research work into genes has been done for more than 20 years by Helsinki University and the Gene Department at the National Public Health Institute.

Human genotype on the Internet

All the genes of a human being and their structure have been made accessible on the Internet for everybody at the address http:/www.ncbi.nim.nih.gov/genome/guide/human/. The information is mainly used by research workers, but the ordinary person, too, can find interesting things on the pages, such as how many chromosomes a person has, what factors affect Down's syndrome or a certain type of high hereditary cholesterol. What the multitude of causes are behind illnesses
and what predisposes people to them.

Location of Finnish biotechnology companies

>> www.sciencepark.helsinki.fi
>> www.etla.fi

The business incubator, Cultivator, at Viikki