Modern Biotechnology Activity
in New Zealand
Modern Biotechnology Activity
in New Zealand
Statistics New Zealand gives no warranty that the information or data supplied contains
no errors. However, all care and diligence has been used in processing, analysing and
extracting the information. Statistics New Zealand shall not be liable for any loss or damage
suffered by the customer consequent upon the use directly, or indirectly, of the information
supplied in this product.
Published in April 2001 by
Statistics New Zealand
Te Tari Tatau
Wellington, New Zealand
ISBN 0-478-20767-0
Preface
This report contains the first set of official statistics on the modern biotechnology industry in New
Zealand. It was undertaken by Statistics New Zealand, with funding sponsorship from the
Ministry of Research, Science and Technology.
The analysis is based on a survey of known participants in the industry; the first of its type carried
out in New Zealand and only the third of its type carried out by any statistical office in the OECD.
The survey, known as the 1998/99 Biotechnology Survey, drew upon the experience of overseas
statistical offices and the advice of a group of industry experts from within New Zealand.
The industry experts provided advice on the processes and products that were likely to be used by
enterprises involved in modern biotechnology activity in New Zealand. This helped define the
scope of the survey. The expert panel comprised:
Professor Diana Hill
Global Technologies Limited
Dr Max Kennedy
Past President of New Zealand Biotechnology Association
Industrial Research Limited
Dr Selwyn York
Chairman of New Zealand Biotechnology Association
New Zealand Pharmaceuticals Limited
Dr William Rolleston
President of Biotenz
South Pacific Sera Limited
Statistics New Zealand is grateful for the support provided by these individuals and for the
cooperation of the enterprises that participated in the Biotechnology Survey.
Brian Pink
Government Statistician
Blank Page 4
Contents
Page
Introduction
7
Defining Modern Biotechnology
8
Development of Modern Biotechnology Activity in New Zealand
9
Summary Statistics
10
2.00 Survey Results
11
2.01 Analysing the Enterprises that Use Biotechnology Processes
11
2.02 Utilisation of Specific Biotechnologies
12
2.03 Nature of the Utilisation of Specific Biotechnologies
13
2.04 Biotechnology Activity Output
14
2.05 Adoption of New Products and Processes
16
2.06 Strategic Alliances
18
2.07 Intellectual Property Rights
20
2.08 Measurement of Human and Financial Resources
23
2.09 Barriers to Acquiring and Implementing Biotechnology
25
2.10 Recruitment from Overseas
26
3.00 Survey and Methodology
27
3.01 Criterion for Selecting the Survey Population
27
3.02 Creation of the Survey Population
29
3.03 Survey Response Rate
29
3.04 Classification of Biotechnology Processes
30
3.05 Classification of Activities Utilising Biotechnology Output
31
3.06 Industrial Groupings for Classifying Respondents to the Survey
32
Contents - continued
Appendix 1 Post Survey Study
34
Appendix 2 Supplementary tables
39
Appendix 3 Glossary of Terms
43
Classification of Biotechnology Output Activity (Biotechnology Activity Output)
48
Glossary of Statistics New Zealand Terms
50
References
51
Modern Biotechnology Activity in New Zealand
7
Introduction
Modern biotechnology has potential applications across a broad spectrum of human
activities, ranging from the production of food to the treatment of illnesses and the
management of waste products. The realisation of this potential over coming decades
may significantly increase the contribution of ‘modern biotechnology’ to the New
Zealand economy. The 1998/99 Biotechnology Survey and this accompanying
analysis are intended to establish a benchmark measure of this contribution, as well as
improving our understanding of the uses of modern biotechnology in New Zealand.
The funding and development of the survey predated the voluntary moratorium on
new trials of genetically modified products initiated, on 14 June 2000.
The analysis contained in this report is based almost exclusively on the 1998/99
Biotechnology Survey, a postal survey of 426 enterprises that were identified as being
those most likely to participate, either exclusively or otherwise, in biotechnology
activities. Of the 419 enterprises that responded to the survey (a response rate of 98.3
percent), 180 indicated they used at least one biotechnology process.
Modern biotechnology embraces a set of processes. These processes can be used in a
variety of industries to produce a range of outputs. However, it is not an industry or an
output. Therefore, the analysis of this activity takes place outside the statistical
industry-based framework, which a statistical agency will typically use. Instead the
outputs of modern biotechnology have been classified into a framework that links
output to the activity in which it is used. The framework used to classify the output of
biotechnology activity is described in section 3.05 at the rear of this report.
Because the 1998/99 Biotechnology Survey was the first of its kind conducted in New
Zealand, Statistics New Zealand also conducted a Post Survey Study (PSS) to
evaluate the quality of its survey responses. This study, which is reported in detail in
Appendix 1, employed the technique of telephone re-interviewing a sample of the
initial survey respondents. The major finding of the PSS was that respondents had
considerable difficulty in isolating and measuring the human and financial resources
that enterprises devoted to modern biotechnology. This, together with noted
variability between respondents in their understanding of what is meant by modern
biotechnology, suggests caution in the use of quantitative financial and human
resource data contained in this report.
8
Modern Biotechnology Activity in New Zealand
Defining Modern Biotechnology
There are many definitions of modern biotechnology. A broad interpretation might be
the application of any modern technologies to the processing of biological materials,
or the processing of material by biological agents. A narrower interpretation relates to
genetic engineering and covers a range of different but related technologies, including
gene manipulation, gene transfer, DNA typing and cloning.
A narrower definition was accepted as being more appropriate to this study, and
appeared in the Biotechnology Survey as:
“The application of scientific and engineering principles to the processing
of material by biological agents, and the processing of biological materials
to improve the quality of life, by isolating, modifying and synthesising the
genetic instructions responsible for actual biological processes.”
In practice, the latter part of this definition proved to be too narrow, so after initial
contact with survey respondents, the definition was expanded to include processes
which are dependent on genetic manipulation. An example of such a process is the
manufacture of vaccines. Where a new vaccine is developed on the basis of genetic
modification, or where the production of antibodies is stimulated through the
introduction of gene constructs, the production of the vaccine can be defined as
modern biotechnology, even though the specific production process may not use
genetic manipulation.
Modern biotechnology, therefore involves genetic manipulation and includes the
following:
•
•
•
•
•
•
Bioprocessing - manufacture of fermented products like cheeses, yoghurt, breads,
brewing, pharmaceutical and vaccine manufacture and so on, provided that
genetic manipulation has occurred.
Bio-prospecting - genetic engineering to produce new goods or services whose
practical applications may not yet be known.
Modern gene/protein technologies (genomics and proteomics): eg producing
genetically modified organisms.
Other genetic manipulations eg antibiotic strain improvement and selection.
DNA based services - includes gene technologies used in diagnostics (medical,
food hygiene, and forensic and environmental diagnostics).
Bio-informatics - the electronic data management of biological information, such
as the archiving of gene sequencing information.
Enterprises involved in modern biotechnology will also frequently be involved in
other productive activities that include the more traditional biotechnologies. Given the
difficulty of defining a biotechnology as modern or traditional, it is possible that the
survey results may include data related to modern processes which do not include
genetic engineering, and hence are outside the intended scope of the survey.
Modern Biotechnology Activity in New Zealand
9
Where possible, the data relating to the following traditional biotechnologies were
excluded from the scope of the survey:
•
•
•
Fermentation (as in traditional beer brewing and bread making).
Use of oxidation ponds to treat sewerage.
The use of screening and filtration, or reed beds to treat sewerage.
These processes are excluded because they are not likely to include the modification
of genetic material.
The products and processes produced by modern biotechnology activity in New
Zealand are utilised in:
•
•
•
The process of producing other goods and services, for example the use of gene
technologies in diagnostics (medical, food hygiene, forensic and environmental
diagnostics).
The production of output that can be sold directly to an end user, for example the
development of vaccines involving genetic modification of genetic materials.
Inputs into research and development, an example of this is the development of
Bio-informatics which is the electronic data management of biological
information, such as archiving gene sequencing information.
Development of Modern Biotechnology Activity in New Zealand
In the early stages of the adoption of a new technology, the majority of the activity
utilising the technology is usually focused on research and development. The research
and development activity is aimed at adapting the technology to suit local conditions
and the development of new processes that have application to local conditions.
The results of the survey indicate that the majority of known modern biotechnology
activity is centred on research and development. The majority of responses indicating
the use of modern biotechnology processes were in the research and development
phase. Enterprises in the scientific research and tertiary education industrial groupings
utilised the largest number of modern biotechnology processes. A significant number
of respondents indicated that they had implemented either a new biotechnology
product or process in the last three years. Enterprises in the survey had registered 59
biotechnology-related patents in the year to June 1999.
The importance of research and development in the utilisation of modern
biotechnology processes and the introduction of new products and processes in the
last three years indicates that the introduction of modern biotechnology to New
Zealand is in its early stages of development. The new products and processes
produced by the research and development activity are likely to be utilised by
enterprises outside the scientific research and tertiary education industrial groupings
in the future as the activity matures in New Zealand.
10
Modern Biotechnology Activity in New Zealand
Summary Statistics
The results of the survey are summarised below:
•
The value of income estimated by respondents to be associated with modern
biotechnology is $475 million, in the year ended June 1999. This compares with
the furniture manufacturing industry, which has total income of $938 million1.
Respondents in the private sector estimated they earned $326 from modern
biotechnology activity. Respondents in the public sector estimated they earned
$149 million from modern biotechnology activity.
•
The value of expenditure estimated by respondents to be associated with modern
biotechnology is $405 million, in the year ended June 1999. Respondents in the
private sector estimated they spent $276 on modern biotechnology activity.
Respondents in the public sector estimated they spent $129 million on modern
biotechnology activity.
•
Biotechnology processes currently are most frequently utilised at the research and
development stage.
•
Enterprises classified to the scientific research and tertiary education industrial
groupings currently utilise the largest number of biotechnology processes.
•
Thirty seven percent of respondents indicated they had implemented a new
biotechnology product in the last three years.
•
Thirty eight percent of respondents indicated they had implemented a new
biotechnology process in the last three years.
•
Enterprises involved in biotechnology activity had registered 59 patents in the
year to June 1999. In the last five years 156 biotechnology related patents were
issued.
•
Enterprises that are undertaking biotechnology are more likely to be aligned with
New Zealand based Crown research institutes and universities than foreign-based
institutions.
•
The lack of capital, regulations, and access to suitably trained and suitably
experienced personnel are identified by survey respondents as barriers to the
development of biotechnology.
•
Employment in the biotechnology activity represents 0.2 percent of the total
employment. Forty percent of employees involved in modern biotechnology hold
a post-graduate qualification.
1
1999 Annual Enterprise Survey, Statistics New Zealand.
Modern Biotechnology Activity in New Zealand
11
2.00 Survey Results
The following sections describe the way in which processes are used, the outputs
produced, the industries in which biotechnology is used, the development of new
processes and products, and the financial and human resources devoted to
biotechnology. There is also a discussion of strategic alliances used by enterprises
involved in modern biotechnology; use of intellectual property rights; the problems
associated with the development of modern biotechnology; and recruitment from
overseas.
The data in the tables produced in the main body of the report and the appendices
which represent counts of responses have been randomly rounded to comply with the
confidentiality provisions of the Statistics Act 1975.
2.01 Analysing the Enterprises that Use Biotechnology Processes
Identification of the types of firms that use modern biotechnology processes will
enable a better understanding of the characteristics of the modern biotechnology in
New Zealand.
One hundred and eighty one enterprises2 indicated use of at least one form of modern
biotechnology process. The industrial groupings used in Table 2.04 are defined in
section 3.06 of the chapter on survey methodology.
Table 2.01 Industrial Classification of Enterprises that Used at Least One Biotechnology
Process
Industrial grouping
Primary products
Food manufacturing
Non-food manufacturing
Scientific research
Local government
administration
Tertiary education
Health services
Other
Total
8,122
1,268
591
5,404
Number of
enterprises
involved in
modern
biotechnology
activity
6
33
24
36
Number of
processes used
by enterprises
in each
industrial
grouping
33
207
153
522
201
76
3,536
25,036
44,234
33
9
24
12
180
150
723
237
60
2,088
Total number
of enterprises
in each
industrial
groupings3
The food manufacturing, scientific research and local government administration
industrial groupings reported the largest number of enterprises involved in
biotechnology. However, enterprises in the scientific research and tertiary education
industrial groupings reported using the largest number of processes.
2
3
Please refer to the glossary at the end of the report for a definition of an enterprise.
1999 New Zealand Business Demography Statistics, Statistics New Zealand.
12
Modern Biotechnology Activity in New Zealand
To give some indication of the significance of modern biotechnology activity, the 180
enterprises involved in the activity compares with approximately 1200 enterprises in
the Research and Development Survey administered by Statistics New Zealand.
Enterprises in the Research and Development Survey population have indicated they
are involved in research and development through their response to the Statistics New
Zealand Annual Business Frame Update Survey, or they have received funding from
the Foundation of Research Science and Technology. All universities and most Crown
research institutes participate in research and development activity.
Less than 0.1 percent of the total number of enteprises recorded on Statistics New
Zealand’s Business Frame4 have an involvement in modern biotechnology.
2.02 Utilisation of Specific Biotechnologies
In order to identify the biotechnology processes used by enterprises involved in
modern biotechnology activity, a range of 58 biotechnology processes was included in
the questionnaire. The processes ranged from fermentation to genetic
engineering/recombinant DNA.
The processes were grouped together into four categories:
•
DNA based technologies using chemistry of DNA as a major component.
•
Biochemistry/immunochemistry based: technologies which utilise
immunochemistry/antibodies or enzymes as a major component.
•
Environmental Biotechnologies: technologies used for pollution control.
•
Bioprocessing based: technologies that process any natural material or material of
biological origin.
Table 2.02 records the number of responses to the questions on the types of
biotechnology processes used. For example, enterprises in the primary products
industrial group indicated they use 6 processes that involved DNA technology.
4
Please refer to the glossary at the end of the report for a description of the Statistics New Zealand
Business Frame.
Modern Biotechnology Activity in New Zealand
13
Table 2.02 Distribution of Modern Biotechnology Processes by Industrial
Grouping.
Industrial
grouping5
Primary products
Food
manufacturing
Non-food
manufacturing
Scientific
research
Local
government
administration
Tertiary
education
Health services
Other
Total
DNA based
6
Categories of biotechnology processes6
Biochemistry/
Environmental
Bioprocessing
immunochemistry
based
based
9
0
18
Total
33
6
69
33
99
207
6
66
18
69
153
120
198
36
168
522
0
18
66
66
150
222
30
6
393
264
147
18
786
24
3
12
192
213
57
24
714
723
237
60
2,088
Biochemistry/immunochemistry based technology processes attracted the largest
number of responses. The largest number of the responses were sourced from
enterprises in the scientific research and tertiary education groupings.
Utilisation of bioprocessing based technologies is spread across a wide range of
industrial groupings. This is a result of the applicability of the bioprocessing based
technologies to a wide range of productive activities.
Environmental technologies are in the main used by the local government and food
and non-food manufacturing industrial groupings.
Enterprises in the scientific research and tertiary education industrial groupings
indicated they used the largest number of biotechnology processes, and between them
accounted for 60 percent of all processes used. This result is consistent with the
hypothesis that the adoption of modern biotechnology into New Zealand is at an early
stage.
2.03 Nature of the Utilisation of Specific Biotechnologies
The nature of the utilisation of a technology can provide an insight into the
development of the use of the technology. In the early stages of development, the
utilisation of the technology will centre on research and development
The questionnaire asked enterprises to indicate whether they used a biotechnology
process in ether the research and product process development, or as part of the
production process or as part of the product sold.
5
6
The industrial groupings are described in section 3.06 of the report.
A distribution of responses by process is given in table A2 in Appendix 2.
14
Modern Biotechnology Activity in New Zealand
The table below records the responses of enterprises that indicated they used at least
one form of biotechnology process. For example, 63 processes based on the use of
DNA based technologies are used in the production process.
Table 2.03 Summary of Responses to the Use of Biotechnology Processes and
their Utilisation Stages
Technologies
DNA based
Biochemistry/immuno
chemistry based
Environmental
Bioprocessing
Total
Research & product/
process development
Stage of utilisation
Part of the production
process
Part of product sold
360
63
30
579
81
297
132
168
30
489
1,506
348
843
141
369
Utilisation of biotechnology processes as part of research and product process
development attracted the largest number of responses.
Environmental technologies recorded the highest percentage of responses that
indicated their use in either the production process or the product sold. This results
from the use of environmental technologies by enterprises in the local authority
industrial group to treat sewage and wastewater.
Enterprises in the scientific research and tertiary education industrial groups indicated
they used the largest number of processes. These two results indicate a significant
proportion of biotechnology activity carried out by enterprises in the survey is focused
on research and development.
2.04 Biotechnology Activity Output
In New Zealand modern biotechnology is used to produce a range of products and
outputs that can be used across a range of activities. In the survey questionnaire,
respondents were asked to classify the activities that utilise the biotechnology
products and processes produced by their enterprise. The classification of the
activities is described in section 3.05 in the chapter on survey methodology.
Table 2.04 records the number of times respondents indicated their output was used
by an activity.
The output of modern biotechnology activity in New Zealand is mostly utilised in the
following activities:
• Environmental
• Human health biotechnology
• Agriculture biotechnology
• Food processing.
Modern Biotechnology Activity in New Zealand
15
Environmental activity attracted the largest number of responses. Enterprises in the
scientific research, tertiary education and local authority administration industrial
groupings provided the largest number of outputs to this category. The enterprises in
the local authority administration industrial group use these processes in their
treatment of sewage and wastewater.
Human health biotechnology activity mainly utilised processes associated with
diagnostic testing and the development of new treatment techniques in research
facilities such as universities and Crown research institutes. Agriculture
biotechnology activity will be utilising biotechnology processes in areas such as the
treatment of disease and the production of new and improved products.
Food processing activity utilises biotechnology processes in areas such as testing to
ensure that their output meets quality standards for domestic and foreign markets.
Enterprises in the tertiary education and scientific research industrial groups are most
active in human health and agricultural biotechnology activities.
16
Modern Biotechnology Activity in New Zealand
Table 2.04 Classification of Use of Biotechnology Output by Industrial Grouping
and Activity
Activity
Primary
products
Human health biotechnology
Bio-informatics
Agriculture biotechnology
Food processing
Aquaculture
Mining/energy/petroleum/chemicals
Forest products
Environment
Other
Total
0
3
3
0
0
3
3
0
0
9
Industrial grouping
Food
Non-food
manufacturing manufacturing
0
0
3
36
0
0
0
3
3
48
9
0
21
9
3
0
3
9
3
57
Scientific
research
21
12
33
15
15
3
3
27
6
135
Table 2.04 Continued
Activity
Human health biotechnology
Bio-informatics
Agriculture biotechnology
Food processing
Aquaculture
Mining/energy/petroleum/chemicals
Forest Products
Environment
Other
Total
Industrial grouping
Local
government
Tertiary
education
0
0
3
0
0
0
0
51
3
57
48
24
36
18
18
0
6
30
9
186
Health
services
27
3
3
0
0
0
0
3
0
33
Other
0
0
6
3
3
0
3
12
3
27
National
total
108
42
102
81
36
6
15
135
27
555
2.05 Adoption of New Products and Processes
As noted in earlier chapters, the results of the survey indicate that a large proportion
of modern biotechnology activity is devoted to research and development. One
outcome of research and development activity is the development of new processes
and products that can be used in either production processes or in further research and
development.
Respondents were asked about the new or significantly improved products and
processes that had been implemented in the last three years, or that they planned to
implement in the next three years.
Modern Biotechnology Activity in New Zealand
17
New Products
Sixty-six respondents (or approximately 37 percent of respondents who use at least
one form of biotechnology process) indicated they had implemented new
biotechnology products in the last three years.
Enterprises in the scientific research industrial group plan to introduce the largest
number of new biotechnology products in the next three years.
Table 2.05 Implementation of New Biotechnology Products
Industrial group
Primary
production
Food
manufacturing
Non-food
manufacturing
Scientific research
Local authorities
Tertiary education
Health services
Rest of the world
Total
Number of
respondents that
implemented a
new
biotechnology
product in the
last three years
Number of new
biotechnology
products
implemented in
the last three
years
Number of
respondents that
plan to introduce
a new
biotechnology
product in the
next three years
Number of new
biotechnology
products planned
to be
implemented in
the next three
years
3
4
3
6
6
12
11
26
12
18
3
9
9
6
66
33
44
4
24
44
15
180
16
20
6
22
13
3
94
48
84
9
66
50
9
298
Enterprises in the scientific research, tertiary education, and health services industrial
groupings introduced the largest number of new biotechnology products in the last
three years.
A larger number of new biotechnology products were planned to be introduced in the
next three years. Enterprises in the food and non-food manufacturing industrial
groupings plan to introduce 26 and 48 new products respectively in the next three
years.
The survey was conducted before the voluntary moratorium on field tests of
genetically modified organisms initiated on 14 June 2000. The voluntary moratorium
may influence plans to introduce new biotechnology products.
New Processes
Sixty-nine respondents (or approximately 37 percent of respondents who use at least
one form of biotechnology process) indicated that they had implemented a new
biotechnology process in the last three years.
18
Modern Biotechnology Activity in New Zealand
Enterprises in the tertiary education and the scientific research industrial groups
implemented the largest number of processes that were either new to New Zealand or
new to the world. This result is consistent with the two industrial groups’ significant
utilisation of biotechnology processes at the research and product process
development phase.
Table 2.051 Adoption of New Biotechnology Processes
Industrial
grouping
Primary
production
Food
manufacturing
Non-food
manufacturing
Scientific research
Local authorities
Tertiary education
Health services
Rest of the world
Total
Number of
respondents
indicating that
they implemented
a new process in
the last three
years
Number of
new processes
implemented
in the last
three years
Number of
processes new
to the
business
Number of
processes new
to New
Zealand
Number of
processes
new to the
world
3
11
6
6
2
6
6
6
4
0
15
18
6
9
12
3
69
42
36
6
27
38
11
177
36
30
6
21
33
12
144
19
17
1
14
1
2
64
9
15
0
13
0
0
39
Enterprises in the scientific research, tertiary education, health services, and non-food
manufacturing industrial groupings introduced the largest number of new
biotechnology processes in the last three years.
The research and development focus of enterprises in the scientific research and
tertiary education industry groupings means they are more likely to either develop
new or significantly improved processes or adapt existing processes as part of their
focus on research and development.
The enterprises in the health services and food manufacturing industrial groupings
would have either adopted processes developed within New Zealand or imported
processes previously developed overseas.
A significant number of the processes developed by enterprises in the scientific
research and tertiary education industrial groupings were either new to New Zealand
or new to the world.
2.06 Strategic Alliances
Cooperation between enterprises that have an interest in the technology is an
important component in the development of new technology. The questionnaire asked
respondents if they had a strategic alliance, the purpose of the alliance, and the nature
of their strategic partners.
Modern Biotechnology Activity in New Zealand
19
Table 2.06 Alliances Used by Enterprises Involved in Modern Biotechnology
Types of alliances used by
biotechnology enterprises
Product/process development
Clinical/field trial
Manufacturing
Marketing/distribution
Regulatory affairs
Finance
Other
Total
Number of
alliances
reported by
respondents
96
48
27
30
24
9
18
249
Percentage
39
19
11
12
10
4
7
100
Fifty-eight percent of alliances were for either product/process development or
clinical/field trial, both of which are elements in the development of new
biotechnology products and processes. This is consistent with the results from the
question on the nature of the utilisation of biotechnology, where the majority of
responses were in the use of the processes in the research and product/process
development.
Table 2.061 New Zealand Based Strategic Partners
Organisations with whom biotechnology
enterprises have alliances
Crown research institute
University
Polytechnic
Related-business research/professional
association
Unrelated-business research/professional
association
Total
Number of
alliances
reported by
respondents
69
66
3
Percentage
37
33
2
39
21
12
189
6
100
Seventy percent of partners in alliances were either Crown research institutes or
universities. These two sets of institutions have been classified in the scientific
research and tertiary education industrial groups. Enterprises in the scientific research
and tertiary education industrial groups provided the largest number of responses to
the utilisation of biotechnology processes at the research and product/process
development stage.
Table 2.062 Distribution of Foreign Based Strategic Partners
Type of overseas organisations
University
Research
Other organisation
Australia
24
0
18
USA
24
0
24
Country
Europe
Asia
21
12
0
0
18
9
Other
3
24
3
Total
87
24
69
20
Modern Biotechnology Activity in New Zealand
The majority of enterprises with a foreign-based strategic alliance are involved in an
alliance with a foreign university.
2.07 Intellectual Property Rights
The biotechnology industry is based upon knowledge acquired from research and
development. Unfortunately, the knowledge gained through the investment in research
and development can be lost through theft or the loss of staff. Biotechnology
companies and research institutions have attempted to protect their investment by
acquiring patents. The use of patents enables research institutions to protect their
intellectual property and control its dissemination.
The section on intellectual property rights in the questionnaire was designed to obtain
information from respondents on the following topics:
•
•
•
•
•
The role of intellectual property rights in the development of biotechnology
projects
Disputes surrounding the availability of information and data necessary for
projects to go ahead
Informal arrangements to share information
Acquisition of intellectual property and successful patent applications
Publications from biotechnology enterprises.
The respondents were asked to indicate if they have had to abandon or not start
biotechnology activity as a result of intellectual property rights or some knowledge
protected by another organisation. They were also asked to indicate the cause for the
abandonment.
A small number of respondents indicated that intellectual property rights hindered the
development of projects. Eleven of the 17 respondents were from enterprises in the
scientific research and tertiary education industrial groupings.
Table 2.07 Intellectual Property Rights
Question
Has this organisation ever had to abandon, or not start a biotechnology
development activity because further work was blocked by intellectual
property rights or some knowledge protected by another organisation
Reasons why the project was abandoned:
Project abandoned because enterprise is unable to purchase the IP
Project abandoned because enterprise is unable to license the IP
Any other reason
Total
Number of
positive
responses
15
9
6
9
21
Less than ten percent of respondents indicated they had to abandon projects as a result
of access to research data.
Modern Biotechnology Activity in New Zealand
21
Table 2.071 Litigation concerning Patents and Access to Research Information
In the last 3 years has this
business been involved in
litigation relating to patent
infringements
In the last 3 years has this
business been involved in
disputes relating to access
to research information
Number of positive
responses
Number of cases
or disputes
12
16
15
41
Ten of the 27 responses to these two questions were from enterprises in the scientific
research and tertiary education industrial groupings. A further eleven responses came
from enterprises in the food and non-food manufacturing industrial groupings.
Table 2.072 Informal Agreements Concerning the Sharing of Information
Classification of partner
Another business
University
Crown research institutes
Hospital
Other
Total
Partner in New Zealand
Number
Percentage
63
26
72
29
75
30
27
11
12
5
249
100
Partner outside New Zealand
Number
Percentage
51
55
39
39
0
0
3
3
6
3
99
100
Universities and Crown research institutes are involved in the majority of information
sharing agreements.
The majority of foreign partners in informal agreements were classified as ‘another
business’.
Table 2.073 Source of Intellectual Property Rights Acquired
Source of patents acquired by
respondents
Another business
University
Crown Research Institute
Hospital
Other
Total
Based in
New Zealand
18
21
21
3
3
60
Based outside
New Zealand
18
9
0
0
3
27
The majority of respondents indicated that they acquired their intellectual property
rights from either a university or a Crown Research Institute.
The number of successful applications for patents can be viewed as an indication of
the progress in the development of modern biotechnology processes. Table 2.074 lists
the number of successful patent applications by enterprises in this survey.
22
Modern Biotechnology Activity in New Zealand
Table 2.074 Successful Application for Patents
Period in which successful
applications were made
In the year ended June 1999
In the last 5 years
Number of
successful
applications
56
156
7
Total patents
granted in
New Zealand8
3,806
16,400
Biotechnology related patents represented 2 percent of the total number of patents
issued in the year to June 1999 and 1 percent of total patents issued in the last five
years. The total number of patents issued in New Zealand is boosted by a large
number of patents applied for by foreign companies in the areas of pharmaceuticals
and electronics.
Enterprises in the scientific research and tertiary education industrial groupings
obtained 49 of the 56 patents granted in the year ended June 1999. Enterprises in these
two industrial groupings also obtained 120 of the 156 patents related to biotechnology
in the last five years, that were granted to respondents to the survey. This result
reflects the high level of research and development activity carried out by these two
industrial groups.
Respondents were asked to indicate if they had a staff member who in the year to June
1999 had:
• Published an article on biotechnology in a refereed journal, or
• Attended a conference (national or international) on a biotechnology subject, or
• Presented a research paper at such a conference (national or international) on
biotechnology.
Table 2.075 Biotechnology Related Conference, Presentation and Publishing
Activity
Publications and conferences attended by
employees of biotechnology enterprises
Publish an article on biotechnology in a
refereed journal
Attend a (national or international)
biotechnology conference
Present a research paper to a conference
(national or international) on biotechnology
Total
number of
responses
Responses from enterprises
in scientific research and
tertiary education industrial
groupings
66
54
162
75
90
60
Table 2.075 shows that most people publishing articles or presenting research papers
at conferences were employees in the scientific research and tertiary education
industrial groupings. This is consistent with the emphasis on research and
development within these industrial groups.
7
8
Intellectual Property Office
Total may include biotechnology patents issued to enterprises not covered in this survey.
Modern Biotechnology Activity in New Zealand
23
2.08 Measurement of Human and Financial Resources
Respondents to the survey were asked to quantify the financial and human resources
the enterprise devoted to modern biotechnology. They were asked the total income
and expenditure of the enterprise and the percentages of both that were associated
with modern biotechnology activity. The human resources supporting modern
biotechnology activity were measured in terms of a head count and the number of full
time equivalent employees.
The Post Survey Study found that respondents had difficulty in determining the
financial and human resources the enterprise devoted to modern biotechnology. The
difficulty resulted from the following factors:
a) Enterprises were involved in producing goods and services other than modern
biotechnology output. The modern biotechnology process utilised was a
component of the production process. This made identification of the cost and
revenue associated with the modern biotechnology component difficult.
b) Employees have a range of tasks including those associated with modern
biotechnology. This made it difficult for respondents to estimate the proportion of
time their employees spent on modern biotechnology activity.
The values of the quantitative variables produced below are based on estimates made
by respondents, so care should be taken when interpreting the results.
Estimated Income and Expenditure
The value of income estimated by respondents to be associated with modern
biotechnology is $475 million. Respondents in the private sector estimated they
earned $326 million from modern biotechnology activity. Respondents in the public
sector estimated they earned $149 million from modern biotechnology activity.
The Public Good Science Fund contributed $17.5 million to revenue earned by
respondents through its investment in research involving genetic engineering.
The value of expenditure estimated by respondents to be associated with modern
biotechnology is $405 million. Respondents in the private sector estimated they spent
$276 million on modern biotechnology activity. Respondents in the public sector
estimated they spent $129 million on modern biotechnology activity.
24
Modern Biotechnology Activity in New Zealand
Table 2.08 Distribution of Estimated Income and Expenditure Associated with
Biotechnology Activity
Range
$million
Less than 1.0
1.0 – 5.0
5.0 - 10.0
10.0 plus
Total
Percentage of respondents
whose estimated income from
biotechnology fell within the
range
63.4
22.6
5.3
8.7
100.0
Percentage of respondents
whose estimated expenditure
associated biotechnology fell
within the range
67.5
20.6
4.1
7.7
100.0
The significance of the activity can be gauged by comparing the ranges to the point
estimates for the following industries from Statistics New Zealand’s 1999 Annual
Enterprise Survey data.
Table 2.09 Income and Expenditure Comparison with Other Industries
Industry
Modern biotechnology activity
Furniture manufacturing 9
Food beverage and tobacco
manufacturing 9
Other health services including
pathology and laboratory services 9
Estimated
income
$ million
475
938
Estimated
expenditure
$ million
405
907
18,872
18,918
1,099
935
Respondents were asked to indicate the level of human resources supporting modern
biotechnology activity in terms of:
• Head count as at 30 June 1999
• Full-time equivalent employees involved during the year ended 30 June 1999.
Table 2.10 The Number of Employees Supporting Biotechnology Processes by
Qualification
Qualification
Bachelor of Science degree
Master of Science degree
PhD
Diploma/certificate
Other
Total
Head count of Employees
associated with
biotechnology
735
390
702
588
315
2,727
Percentage distribution
26
14
27
22
12
100
Sixty-seven percent of employees held a graduate or postgraduate degree. These
qualifications are important in research and development of new products and
processes, which requires a high level of technical and theoretical knowledge.
9
1999 Annual Enterprise Survey, Statistics New Zealand.
Modern Biotechnology Activity in New Zealand
25
Employment in the modern biotechnology activity represents 0.2 percent of total
employment.
Table 2.11 presents the results from a 1993 survey carried out by the New Zealand
Biotechnology Association. In the survey, 97 organisations identified as users of
biotechnology were asked for information on the qualifications of trained employees.
The distribution of responses to the 1993 survey is very similar to those recorded in
the 1999 survey.
Table 2.11 Results of the 1993 New Zealand Biotechnology Association Survey on
Qualifications of Employees Employed by Members of the Association
Qualification
Bachelor of Science degree
Master of Science degree
PhD
Diploma/certificate
Total
Head count of
employees associated
with biotechnology
106
40
148
54
348
Percentage
distribution
30
11
43
16
100
2.09 Barriers to Acquiring and Implementing Biotechnology
Analysis of the barriers to the development of modern biotechnology activity aids the
understanding of the current state of the activity in New Zealand.
Table 2.12 Barriers to the Development of Modern Biotechnology
Factors acting as barriers to the development of
modern biotechnology activity
Number of
responses
Access to capital
96
Access to management experts
27
Access to personnel suitably trained in biotechnology
51
Access to suitably experienced biotechnology personnel
48
Access to biotechnology research data and/or information
21
Access to technology
39
Lack of information about markets
33
Regulations
66
Implications of Treaty of Waitangi claims
21
Other
24
Access to capital was identified as the greatest barrier to development. As noted in
chapter 2.03, the majority of biotechnology processes are being utilised at the research
and product processes development phase. Investors may be reluctant to put funds
into research and development given the uncertainty as to whether it will result in a
commercial application.
26
Modern Biotechnology Activity in New Zealand
A significant number of respondents to the survey identified regulations and access to
suitably trained and suitably experienced biotechnology personnel as barriers to the
development of modern biotechnology. The lack of personnel will impede both the
adoption of new processes and the creation of new and significantly improved
biotechnology processes by enterprises in New Zealand.
The funding and development of the survey predated the voluntary moratorium on
new trials of genetically modified products that was initiated on 14 June 2000.
2.10 Recruitment from Overseas
Respondents indicated that staff shortages are a barrier to development. Of these 27
attempted to recruit staff from overseas.
Table 2.13 Recruitment from Overseas.
Questions
Recruited from overseas
Responses
27
Country of origin
Australia
9
Asia
6
Europe
15
USA
12
Other
6
Twenty-four of the 27 enterprises which successfully recruited from overseas were in
the scientific research and tertiary education industrial groupings.
Seven respondents indicated that they were unable to recruit staff from overseas. The
largest given cause of the failure to attract overseas staff was the inability to match the
salaries being offered by overseas enterprises.
Modern Biotechnology Activity in New Zealand
27
3.00 Survey and Methodology
This chapter describes the survey methodology used for the Biotechnology Survey.
3.01 Criterion for Selecting the Survey Population
Enterprises selected for the survey were those that fitted the following two categories:
•
•
Units whose predominant activity was likely to be modern biotechnology.
Units whose predominant activity was not modern biotechnology, but who were
considered likely to engage in some modern biotechnology activity.
The approach was adopted because modern biotechnology is a process that cannot be
tied into an industrial classification as set out in the Australia and New Zealand
Standard Industrial Classification (ANZSIC)10. Experiences of other statistical offices
that have attempted to measure the activity have found that the users of modern
biotechnology are likely to be spread over a range of industrial classifications.
The following set of criteria was constructed with the assistance of the expert panel,
drawing on the experience of overseas statistical offices that have attempted to
measure biotechnology activity.
Criterion one: units whose predominant activity is likely to be modern
biotechnology.
This category includes
1) All enterprises on Statistics New Zealand’s Business Frame with any of the
following key words in their legal and or trading name:
• Bio-informatics
• Bioprocessing
• Bioreagent
• Biotechnology
• Biotransformation(s)
• Chromatography
• Clonal
• Concentrates
• Extract
• Extraction
• Fluid Extraction
• Functional Foods
• Genetic(s)
• Genomic(s)
• Industrial Microbiology
• Monoclonal
• Nutraceutical(s)
10
Please refer to the glossary at the end of the report for a description of the Australia and New
Zealand Standard Industrial Classification.
28
•
•
•
Modern Biotechnology Activity in New Zealand
Proteomic(s)
Supercritical
Transgenic.
2) Enterprises whose names appear on the Biotenz membership list.
3) Enterprises whose names appear on the New Zealand Biotechnology Association’s
membership list.
4) All institutions whose names appear on the 1997 and/or 1998 Foundation of
Research, Science and Technology (FoRST) lists of applicants receiving funding to
carry out biotechnology related research and/or development activity.
5) Local authority sewerage treatment facilities
6) Crown research institutes (CRIs).
7) University departments that have an interest in biotechnology
8) Microbiology units in metropolitan hospitals.
9) The New Zealand Blood Service.
10) Institutions on the Health Research Council list of funding contracts for the
support of biotechnology-related research and/or development activity.
Criterion two: Businesses whose predominant activity is not modern
biotechnology, but who are likely to engage in some modern Biotechnology
activity.
This category includes
1) All enterprises on Statistics New Zealand’s Business Frame with any of the
following key words in their legal and/or trading name:
• Biological
• Bioscience(s)
• Diagnostics
• Health
• Life Science(s)
• Pharmaceutical(s)
• Pharmaceutics
• Science(s)
• Scientific
• Serum.
All enterprises that have geographic units11 on Statistics New Zealand’s Business
Frame with one of the following ANZSIC codes. These industries were identified as
most likely to make use of biotechnology processes:
• A0301 Forestry
• B1101 Black Coal Mining
• B1200 Oil and Gas Extraction
• C2121 Milk and Cream Manufacturing
2)
11
Please refer to the glossary at the end of the report for a definition of a geographic unit.
Modern Biotechnology Activity in New Zealand
•
•
•
•
•
•
•
•
•
•
•
•
29
C2122 Ice Cream Manufacturing
C2129 Dairy Product Manufacturing
C2161 Bread Manufacturing
C2182 Beer and Malt Manufacturing
C2183 Wine Manufacturing
C2331 Pulp, Paper and Paperboard Manufacturing
C2543 Medicinal and Pharmaceutical Product Manufacturing
C2544 Pesticide Manufacturing
L7810 Scientific Research
L7829 Technical Services nec
O8431 Higher Education
O8611 Hospitals.
3.02 Creation of the Survey Population
The various membership lists were not always fully up to date, so they were matched
against the Statistics New Zealand Business Frame to identify those units that were no
longer functioning. These were removed from the survey population.
Enterprises that fitted criterion two were selected from the Statistics New Zealand’s
Business Frame with information on the number of full time equivalent employees
and the level of GST sales income activities. Those enterprises whose GST sales were
less than $5 million per annum were removed from the list of potential respondents to
the survey. Modern biotechnology is a capital-intensive activity. Enterprises, whose
predominant activity is not modern biotechnology, will require a cash flow that will
be sufficient to finance the capital requirements of both their predominant and modern
biotechnology. The $5 million GST sales cut-off is consistent with the cut-off applied
by other statistical offices that have attempted to measure biotechnology activity.
Enterprises that fitted criterion one were assumed to be enterprises whose
predominate activity was biotechnology, so, the $5 million GST sales cut-off was not
applied to those units.
A list of enterprises that met the criterion listed above was then drawn up. The
enterprises were then contacted to see if they were involved in modern biotechnology
activity. Those that indicated that they did not undertake modern biotechnology
activity were removed from the survey population. The pre-notification phone call
also enabled the identification of the staff member(s) who were best able to complete
the questionnaire.
3.03 Survey Response Rate
Questionnaires were sent to 426 enterprises. The diverse nature of departments at
universities and hospitals made it difficult for one person to complete the
questionnaire on behalf of the whole organisation, and as a result some universities
and hospitals completed more than one questionnaire.
The survey achieved a 98.3 percent response rate. Of the enterprises that responded to
the survey 42 percent or 180 enterprises indicated that they used at least one
biotechnology process. All known significant participants in the activity responded to
the survey.
30
Modern Biotechnology Activity in New Zealand
The main emphasis of the respondent follow up process, was on those enterprises
whose predominant activity was modern biotechnology. The enterprises whose
predominant activity was not modern biotechnology were also included in the
respondent follow up process, but were given a lower priority. The responses could
not be obtained from seven enterprises in this category. No imputation was made
because only a small percentage of these enterprises would be involved in modern
biotechnology.
3.04 Classification of Biotechnology Processes
Modern biotechnology is a process. This differentiates it from an industry or an output
that would fit into a standard industrial classification used by statistical offices.
Fifty-eight biotechnology processes were listed in the questionnaire. The processes
and the groupings are based on the experience of overseas statistical offices and the
advice of an expert panel. The expert panel validated the use of the processes in New
Zealand and the classification of the processes within each group. The processes were
grouped as indicated in Table 3:01.
Table 3.01 Classification of Biotechnology Processes
Classification
Biotechnology processes
DNA based: technologies using the chemistry of Genetic engineering/recombinant
DNA as a major component
DNA, gene probes
Bio-informatics
Genomics
Pharmacogentics
DNA sequencing
DNA synthesis
DNA amplification
Gene therapy
Rational drug design
Peptide synthesis
Biochemistry/immunochemistry based:
Vaccines
technologies, which utilise
Immune stimulants
immunochemistry/antibodies or enzymes as a
Drug design and delivery
major component
Combinational chemistry
Diagnostic tests
Peptide/protein sequencing
Cell receptors
Cell signalling
Bio-sensing
Pheromones
Three dimensional molecular modelling
Structural biology
Antigens
Monoclonal antibodies
Microbiology/microbial ecology
Biomaterials
Environmental biotechnologies: technologies
Bioaugmentation
used for pollution control
Bioreactors
Biological gas cleaning
Bio-remediation
Phytoremediation
Modern Biotechnology Activity in New Zealand
31
Table 3.01 Continued
Classification
Bioprocessing based: technologies that process
any natural material or material of biological
origin
Biotechnology processes
Cell culture
Tissue culture
Embryo culture
Cell manipulation
Tissue manipulation
Embryo manipulation
Fermentation
Bioprocessing
Biotransformation
Bio-leaching
Biopulping
Bio-bleaching
Bio-desulphurisation
Bio-pesticide manufacturing
Extraction/concentration/purification/separation
Biofiltration
Bioindicators
Micro-selected breeding of plants and animals
Micro-inoculates
Somantic embryo-genesis
3.05 Classification of Activities Utilising Biotechnology Output
The processes developed by modern biotechnology activity can be applied to a range
of outputs. Therefore, the analysis of this activity takes place outside the statistical
industry-based framework that a statistical agency will typically use. Hence, a
framework for classifying the output of the activity was created. The framework is
based on the classification of the activities that utilise the output of the enterprises
involved in the activity. This differs from a standard statistical classification for an
industry that centres on the characteristics of the commodities produced by the
industry.
As noted above, the output produced from modern biotechnology activity can be used
across a range of activities. In order to classify the output of modern biotechnology it
is necessary to link its output to an activity in which it is used. Set out below is a
classification framework for the output of modern biotechnology that links output to
the activity in which it is used. The classification system is based on the experience of
overseas statistical offices and has been validated by members of the expert panel.
1) Human health biology
a) Diagnostics
b) Therapeutics
c) Gene therapy
2) Bio-informatics
a) Genomics and molecular modelling
3) Agricultural biology
a) Plant biotechnology
32
Modern Biotechnology Activity in New Zealand
b) Animal biotechnology
c) Biofertilisers/biopesticides/bioherbicides/biological feed additives/microbial
pest control
d) Non-food applications of agricultural products
4) Food processing
a) Brewing/wine producing
b) Baking
c) Dairy
d) Functional foods/nutriceuticals
5) Aquaculture
a) Fish health
b) Broodstock genetics
c) Bioextraction
6) Mining/energy/petroleum/chemicals
a) Microbiologically enhanced petroleum/mineral recovery
b) Cleaner industrial processing in mining; petroleum; and chemical production
7) Forest products
a) Silviculture
b) Cleaner industrial processing of forest products
8) Environment
a) Biofiltration
b) Bioremediation and phytoremediation
c) Diagnostics
c) Custom synthesis - chemical or biological
9) Other
3.06 Industrial Groupings for Classifying Respondents to the Survey
Each enterprise in the survey was assigned to one of eight industry groupings using
the Australian and New Zealand Industrial Classification (ANSZIC) for it on the
Statistics New Zealand Business Frame. The industry groupings were created by
combining together groups of industries, which are likely to be using processes in a
similar way. The industrial groupings were developed to take into account the context
in which the processes were utilised, for example, enterprises in the food
manufacturing group are likely to be utilising biotechnology processes differently
from enterprises in the health services group. The industrial groupings were also
constructed in order to protect the confidentiality of the respondents of the survey.
Modern Biotechnology Activity in New Zealand
Table 3.02 Industry Groupings for the Analysis of the Results of the Survey.
Three digit ANZSIC classification
A021 Services to Agriculture
A030 Forestry & Logging
B120 Oil & Gas Extraction
C211 Meat and Meat product Manufacturing
C212 Dairy Product Manufacturing
C215 Flour Mill and Cereal Food Manufacturing
C216 Bakery Product Manufacturing
C217 Other Food Manufacturing
C218 Beverage and Malt Manufacturing
Industrial
grouping
Primary
Products
Food
Manufacturing
C233 Paper and Paper Product Manufacturing
C253 Basic Chemical Manufacturing
C254 Other Chemical Manufacturing
C272 Basic Non-ferrous Metal Product
Manufacturing
Non-food
Manufacturing
L781 Scientific Research
L782 Technical Services
Scientific
Research
M811 Government Administration
Government
Administration
Tertiary
Education
Health Services
N843 Post School Education
O861 Hospitals and Nursing Homes
O863 Other Health Services
D370 Water Supply, Sewerage and Drainage
Services
F452 Mineral, Metal and Chemical Wholesaling
F471 Food, Drink and Tobacco Wholesaling
F479 Other Wholesaling
L785 Marketing and Business Management
Services
O864 Veterinary Services
P923 Parks and gardens
Q952 Other Personal Services
Q963 Public Order and Safety Services
Other
33
34
Modern Biotechnology Activity in New Zealand
Appendix 1 Post Survey Study
Introduction
This appendix summarises the results of the post survey study (PSS) of the
Biotechnology Survey 1998/99. The complete study report will be published
separately.
The purpose of the Biotechnology Survey PSS was to assess the quality of survey
data. It involved checking and clarifying answers from a sample of 50 businesses
selected from those that returned questionnaires.
Why Carry Out a Post Survey Study?
Two main reasons prompted Statistics New Zealand to undertake the study. Firstly,
there has been limited international experience with conducting biotechnology
surveys. As with any of our surveys, Statistics New Zealand carries out a range of
testing to try to ensure that the questionnaire will meet the data needs and be easily
and consistently understood by respondents. However, despite this testing, Statistics
New Zealand was still concerned that some questions may not have been consistently
understood by respondents, in particular from the perspective of modern
biotechnology.
Secondly, the absence of any single ANZSIC category describing this industry meant
that it was necessary to ask a series of filter questions in the questionnaire to assist in
determining the survey population. As with any collection, which relies on a survey
population developed in part from industry lists as well as survey questions, there was
a risk that the survey population would not be an accurate representation of the true
population engaged in modern biotechnology. The study gave Statistics New Zealand
an opportunity to assess whether the filter questions were correctly screening the
survey population.
Post Survey Study Methodology
The PSS was based on a sample of 50 businesses. These were selected from among
those who completed and returned their survey questionnaires. For the purpose of
sampling, the respondents to Biotechnology Survey population were classified into
ten groups based on their industry activity. Approximately five units were selected
from each group to represent both biotechnology businesses and those which did not
carry out biotechnology activities. In the sample, about one-half of the units were
active biotechnology businesses, while the rest were not.
The people who completed the survey questionnaire in the selected businesses were
contacted by phone to request their assistance as part of a survey audit. An indirect
approach to checking their answers was used. This involved asking a description of
their business activity combined with probing to determine whether their business was
actively engaged in modern biotechnology.
Modern Biotechnology Activity in New Zealand
35
The key areas checked were involvement of the business in modern biotechnology,
the activity which respondents indicated utilised their biotechnology output, business
income and expenditure, staff numbers involved, biotechnology partnerships and
problems in commercialising biotechnology.
Three types of analyses were done of the activities of biotechnology businesses.
Firstly, they were analysed in order to determine whether or not each unit was actively
involved in modern biotechnology. Secondly, the processes used by the business were
checked to see if they were consistent with the definition of modern biotechnology
used in the survey questionnaire. Finally, the information on the output produced by
the business was used to derive the bio-industry sector applicable to the business.
This information, together with other data relevant to the biotechnology operations of
the business, was compared with what the survey had produced for the same unit.
These comparisons revealed whether or not the survey data were different from the
PSS and if so the extent to which the data from two sources deviated from each other.
This is the first post survey study of an economic survey that has been done by SNZ
or other statistical offices, so there is no benchmark for determining the significance
of the difference between the two responses.
It is likely that the differing collection methodologies and the use of two surveys to
collect information would have produced some variation in the results, although this
cannot be measured.
Key Findings
The PSS showed that the Biotechnology Survey collected a large amount of useful
information on modern biotechnology activity in New Zealand. However, there were
some questions that were not answered well by respondents and these are discussed
below.
Firstly, the results of the PSS showed that some respondents in the survey were
uncertain as to whether the biotechnology processes they used fitted into the
definition of modern biotechnology in the survey questionnaire. As a result, estimates
of the size of the modern biotechnology activity should be treated with care.
Secondly, the PSS showed that the respondents had considerable difficulty in isolating
and measuring the financial and human resources that businesses devoted to modern
biotechnology from the rest of their business activity. This suggests care should be
taken when interpreting quantitative data presented in the main report.
These issues raised by the PSS should be taken into account when interpreting the
results of the survey.
36
Modern Biotechnology Activity in New Zealand
Data Quality Issues
The PSS has identified six areas of concern. These issues are listed in the order that
they appear in the questionnaire:
•
•
•
•
•
•
Identifying modern biotechnology
Classification of output
Biotechnology partnerships
Income and expenditure
Number of biotechnology staff
Problems in commercialising biotechnology.
Identifying Modern Biotechnology
Of the 50 enterprises in the PSS, 18 enterprises reported involvement in modern
biotechnology. A further 18 enterprises reported involvement in modern
biotechnology when responding to the survey. However, only 15 enterprises indicated
in both the survey and the PSS that they were involved in modern biotechnology. This
occurred because three enterprises who indicated that they were not involved in
modern biotechnology in the survey, were recorded in the PSS as being involved in
modern biotechnology. Similarly three businesses which reported in the
Biotechnology Survey that they were involved in modern biotechnology, were not
involved in modern biotechnology according to the PSS. Accordingly, some care
needs to be taken when interpreting finer level breakdowns.
The variance noted above was mainly caused by the use of modern biotechnology
processes as a minor element of the processes used by the enterprise. Hence,
enterprises were more likely to see themselves as not being involved in modern
biotechnology.
At an overall level, the total number of businesses engaged in modern biotechnology
as shown by the survey is probably about right.
Classification of Output
The PSS results indicated that seven businesses had misclassified the activity that
utilised their biotechnology output. The misclassified sectors were related to forestry,
the environment and other activities. This was due to respondents not being able to
classify the most appropriate activity that utilised their output. As with the level of
biotechnology activity discussed earlier, there were no biases in any one direction.
Biotechnology Partnerships
The study had a sample of 50 enterprises. In the survey 10 of these reported 16
biotechnology partnerships. The PSS identified 18 enterprises, which had 22
biotechnology partnerships.
The PSS differed from the Biotechnology Survey at least in two areas. Firstly, the
PSS identified several new types of partners such as research associations, overseas
consortiums, international institutions, etc not listed in the survey questionnaire.
Modern Biotechnology Activity in New Zealand
37
Secondly, some enterprises did not report all their partnerships in the survey.
What the above suggests is that the survey data did show some of the broader types of
partnerships, but understated the complexity of the partnership types and their
combinations.
Income and Expenditure:
The PSS found income and expenditure estimates for seven out of nine biotechnology
businesses were significantly different between the survey and the study.
The PSS highlighted difficulties encountered by respondents in providing accurate
estimates of income and expenditure on modern biotechnology. The reason for the
difficulty is twofold. Firstly, the relevant figures are not recorded separately in
enterprise accounts. Secondly, the biotechnology processes used by enterprises are
closely integrated with the other activities carried out by the enterprise and were not
easily separated from the remainder of the processes used by the enterprise.
The values of income and expenditure published in the report are based on estimates
by respondents. Therefore they should be treated with care, especially when
desegregated.
Number of Biotechnology Staff
The PSS revealed that staff numbers and full-time equivalent staff were different for
11 out of 18 biotechnology businesses. As with other variables, the deviations
between the survey and the PSS were not biased.
Respondents reported that their difficulties arose from two factors:
i) Their staff worked on a range of tasks, which supported both modern biotechnology
activity and other activities. The systems used for recording the hours worked by staff
did not separately record time spent on modern biotechnology activity.
ii) The biotechnology processes used by enterprises are closely integrated with the
other activities carried out by the enterprise and were not easily separated from the
remainder of the processes used by the enterprise.
These factors made it difficult for respondents to measure the human resources
devoted to modern biotechnology activity and so care should be taken when
interpreting the results in this report.
38
Modern Biotechnology Activity in New Zealand
Problems in Commercialising Biotechnology
The PSS suggests that the range of problems encountered in commercialising
biotechnology may have been understated by some respondents, while for others the
problems may have been overstated. This question involves an element of opinion, so
the response will vary depending on circumstance.
The deviations between the survey and the PSS were unbiased.
Conclusions
The PSS found that some respondents may have misinterpreted the definition of
modern biotechnology leading to a situation where some units were excluded from the
results of the survey where they may have been included and vice versa. However, the
significance of the coverage issue is hard to measure.
The PSS highlighted the difficulty some respondents had in separating their
involvement in modern biotechnology activity from the other activity carried out by
their enterprise. This resulted in estimates being made of the human and financial
resources devoted to modern biotechnology.
It is likely that the differing collection methodologies for the Biotechnology Survey
and the PSS, and the use of two surveys to collect the same information would have
lead to variance in the information that was gathered by the two surveys. However,
the information gathered by the PSS has enabled further analysis of the survey results,
which would not have been possible without the study.
The issues raised by the PSS should be taken into account when interpreting these
results.
Modern Biotechnology Activity in New Zealand
Appendix 2 Supplementary Tables
Table A2 Distribution of Biotechnology Processes
DNA based
Number of responses
Bio-informatics
54
DNA amplification
69
DNA sequencing
48
DNA synthesis
39
Genetic engineering/recombinant DNA
45
Gene probes
60
Gene therapy
3
Genomics
42
Other DNA based
3
Pharmacogenetics
9
Rational drug design
15
Total
393
Biochemistry/immunochemistry based Number of responses
Antibodies
Antigens
Bio-sensing
Biomaterials
Cell receptors
Cell signalling
Combinatorial chemistry
Diagnostic tests
Drug design
Immune stimulants
Microbiology
Molecular modelling
Monoclonal antibodies
Other biochemistry
Peptide sequencing
Peptide synthesis
Pheromones
Structural biology
Vaccines
Total
Environmental biotechnologies
Bio-reactors
Bio-remediation
Bioaugmentation
Biological gas cleaning
Other environmental
Phytoremediation
Total
78
63
39
63
39
33
9
75
18
39
117
24
60
3
36
15
12
30
27
786
Number of responses
57
42
48
12
3
36
192
39
40
Modern Biotechnology Activity in New Zealand
Table A2 Continued
Bioprocessing based
Bio-bleaching
Bio-desulphurisation
Bio-leaching
Bio-pesticide manufacturing
Bio-pulping
Biofiltration
Bioindicators
Bioprocessing
Biotransformation
Cell culture
Cell manipulation
Micro-selected breeding
Embryo culture
Embryo manipulation
Extraction
Fermentation
Microbio-inoculants
Natural products
Other bioprocessing
Somatic embryo-genesis
Tissue culture
Tissue manipulation
Total
Number of responses
3
0
0
18
3
42
75
39
48
102
39
15
18
12
69
57
6
60
3
12
66
27
714
Table A3 Use of Biotechnology Processes by Stage of Development
Industrial groups
R&D
Production
process
Product
Sold
R&D
Production
process
Product
Sold
R&D
Production
process
Product
Sold
Bioprocessing based technologies
R&D
Production
process
Product
Sold
6
6
0
0
0
0
6
33
3
51
0
24
0
9
0
27
0
6
9
42
9
87
6
30
6
105
0
219
15
6
360
0
18
0
24
15
3
63
0
9
0
9
12
0
33
45
183
3
261
33
12
579
45
48
15
24
96
12
297
36
21
6
6
72
3
168
9
30
3
24
0
0
81
12
9
66
6
0
9
135
6
12
3
0
0
3
30
51
147
3
210
21
9
489
45
48
63
39
39
15
348
27
24
6
21
21
3
141
Modern Biotechnology Activity in New Zealand
Primary Production
Food Manufacturing
Non-food
Manufacturing
Scientific Research
Local Government
Tertiary Education
Health Services
Other
Total
Biotechnology processes
Biochemistry/immunochemistry
Environmental technologies
based technologies
DNA based technologies
41
42
Modern Biotechnology Activity in New Zealand
Table A4 Use of Biotechnology Processes by Stage of Development and
Institutional Sector
Biotechnology
processes
DNA based
biotechnologies
Institutional sector
Research and
product/process
development
Central government
Local government
Private sector
Total
285
0
72
360
51
0
12
66
27
0
3
33
387
6
183
579
135
18
147
300
75
6
84
168
42
3
33
81
12
75
45
135
3
3
24
30
324
9
159
489
117
69
162
348
48
6
84
141
Biochemistry/immuno
chemistry based
Central government
biotechnologies
Local government
Private sector
Total
Environmental
Central government
biotechnologies
Local government
Private sector
Total
Bioprocessing based
Central government
biotechnologies
Local government
Private sector
Total
Part of the
production
process
Part of product
sold
Table A5 Distribution of the Industrial Classification of Output by Institutional
Sector
Activity
Human health biotechnology
Bio-informatics
Agriculture biotechnology
Food processing
Aquaculture
Mining/energy/petroleum/chemicals
Forest products
Environment
Other
Total
Private
Central
Local
sector
government government
enterprises enterprises enterprises
33
6
45
57
9
3
9
30
12
210
75
33
54
24
27
3
9
45
12
282
0
0
6
0
0
0
0
60
3
66
Total
108
39
102
81
39
6
18
135
27
555
Modern Biotechnology Activity in New Zealand
43
Appendix 3 Glossary of Terms
Biotechnology process
DNA based
Genetic engineering
Gene probes
Bio-informatics
Genomics
Pharmacogenetics
DNA sequencing
DNA syntheses
DNA amplification
Gene therapy
Rational drug design
Description
Technology using chemistry of DNA as a major
component.
The manipulation of an organism’s genetic
endowment by modifying, introducing or
eliminating specific genes through modern
molecular biology techniques.
A section of DNA of known structure or
function which is marked with a radioactive
isotope, dye or enzyme so that it can be used to
detect the presence of a similar sequence from
any biological material.
Computer-based analysis of biological
information (bio-info) especially genomics and
molecular modelling (eg DNA/RNA/protein
sequencing and databases for humans, plants
animals and micro-organisms).
The use and organisation of information of
biological interest, including the construction
and analysis of genes, that may be used to search
for new genes of interest, matching existing
genes, etc.
The study of the genetics of drug production or
action or assimilation.
A method to determine the order of nucleotides
on a DNA fragment or molecule.
Design and synthesis of DNA molecules from
existing information of its constituent bases.
Process of increasing the number of copies of a
particular gene or chromosomal sequence.
Replacement of a defective gene in a organism
suffering from a genetic disease.
Analysis of the structures of active sites of
enzymes and receptors in order to design
pharmacologically active synthetic molecules.
44
Modern Biotechnology Activity in New Zealand
Glossary of Terms Contd.
Biotechnology process
Biochemistry/immunochemistry-based
Vaccines
Immune stimulants
Drug design and delivery
Combinatorial chemistry
Diagnostic tests
Peptide/protein sequencing
Peptide/protein synthesis
Cell receptors
Cell signalling
Biosensing
Description
Technology utilising Immunochemistry
(antibodies) or enzymes as a major component.
The agent containing antigens produced from
killed, attenuated or live pathogenic microorganisms or parts of micro-organisms used to
stimulate the immune system to protect the host.
Compounds that induce the immune system to
produce antibodies or antibody containing
lymphocytes.
Development of drugs where the raw materials
and/or processes involve the use of
Biotechnology.
An approach to chemical synthesis that enables
the creation of large numbers of organic
compounds by putting chemical building blocks
together in every possible combination. It is
used to synthesise compounds, which are
screened, or tested, against biological targets as
part of the drug discovery process.
A test used to determine the source of a
problem, or the method of determining the
nature of a disease by analysing the symptoms.
The process of determining the sequence of a
polypeptide or cluster of polypeptides, or the
process of creating a new substance from
precursor molecules.
Procedure to link two or more amino acids
joined by linkage called a peptide bond.
Functional proteinaceous structures found in the
membrane (surface) of cells that tightly bind
specific molecules (organic, protein or viruses).
This binding often causes a chain of events to
occur within the cell.
The mechanism used by cells to induce or
trigger events at remote sites within cells.
Use of a biological molecule eg enzymes,
antibodies in the conjunction with a transducer
to a low-level detection of substances such as
sugars and proteins in body fluids, and
pollutants in water etc.
Modern Biotechnology Activity in New Zealand
45
Glossary of Terms Contd
Biotechnology process
Pheromones
Three dimensional molecular
modelling
Structural biology
Antigens
Monoclonal antibodies
Antibodies
Microbiology/microbial ecology
Biomaterials
Environmental biotechnologies
Bio-augmentation
Bio-reactors
Description
Compounds emitted by insects and spread
through the air for the purpose of attracting the
opposite sex.
Description of the characteristics of molecules
through a three dimensional spatial
representation.
The study of the three dimensional structures of
biological molecules (such as proteins) and their
mutual interactions as a means of understanding
the functions of these molecules within the cell.
A substance that stimulates the production of
specific neutralising antibodies in an immune
response. Any chemical substance, usually
protein, that interacts with an antibody.
A monoclonal antibody is a highly specific
antibody which is derived from a line of cells
and which recognises only one specific
complimentary antigen.
Proteins that circulate in the blood stream and
bind to foreign invading substances (antigens)
(eg bacteria, toxins, certain viruses) with a great
deal of specificity.
Study of organisms that are too small to be seen
with the naked eye.
Any biologically derived material which is used
for its material properties rather than its
biological properties.
Group of five biotechnologies used for pollution
control: bio-augmentation, bio-remediation, bioreactors, phytoremediation, and biological gas
cleaning.
The process of increasing the efficiency of the
naturally occurring microbial population to
concentrate or accumulate specific compounds.
This is usually achieved by adding nutrients,
oxygen or water.
Enclosed containers in which micro-organisms
are maintained under controlled conditions for
the purpose of creating or destroying specific
compounds.
46
Modern Biotechnology Activity in New Zealand
Glossary of Terms Contd
Biotechnology process
Biological gas cleaning
Bio-remediation
Phytoremediation
Bioprocessing based
Cell culture
Tissue culture
Embryo culture
Cell manipulation
Tissue manipulation
Embryo manipulation
Fermentation
Bioprocessing
Biotransformation
Bio-leaching
Bio-pulping
Bio-bleaching
Description
The use of micro-organisms to breakdown or
degrade hazardous substances in a gas stream
into less hazardous or non-toxic substances.
The use of naturally occurring or genetically
modified micro-organisms to breakdown or
degrade hazardous substances into less
hazardous or non-toxic substances.
The use of plants to treat or clean environmental
pollution.
The processing of any natural material of
biological origin.
A population of cells grown for microbiological
testing, cell culture development, to study their
structure, or to manufacture products.
A technique for growing cells from multicellular organisms in a liquid medium.
The ability to grow and modify a range of tissue
types under laboratory conditions.
Ability to grow and modify a range of cell types
under laboratory conditions.
Ability to grow and modify a range of tissue
types under laboratory conditions.
Ability to grow and modify a range of embryo
types under laboratory conditions.
Micro-organic process in which the metabolism
of sugars for energy is accompanied by the
formulation of alcohol and/or lactic acid and
solvents. Includes processes such as wine,
cheese and yoghurt making, brewing, yeast
production etc.
Production stages that include fermentation,
recovery and purification.
Conversion of one chemical or material into
another using a biological catalyst.
Use of micro-organisms to leach metals from
ore.
The use of enzymes to degrade wood structures
to produce pulp for papermaking purposes.
The use of enzymes to bleach paper fibre.
Modern Biotechnology Activity in New Zealand
47
Glossary of Terms Contd
Biotechnology process
Extraction/concentration/purification/
separation
Biofiltration
Bio-indicators
Micro selected breeding of plants and
animals
Natural products chemistry
Microbio-inoculants
Biosensing
Bio-pesticide
Somatic embryo-genesis
Description
The retrieval of a compound of interest from a
raw material eg plant chemicals, herbal extracts,
and milk fractions.
The treatment of sewage or industrial
wastewaters using active biomass growing on a
solid support.
The use of organisms to indicate the status of an
environment.
Use of biotechnology processes to accelerate
natural selection.
The study of a biological material or
biological-derived material using chemical
methods, normally being the isolation and
identification of the chemicals within a
biological material.
Naturally occurring bacterial inoculates used to
promote plant growth.
Process that uses a biological molecule eg
enzymes, antibodies in conjunction with a
transducer to low level detection of substances
such as sugars and proteins in body fluids,
pollutants in water etc.
Biological pest control through the use of
naturally occurring microbes or bacteria.
Propagation of genetically desirable plant and
tree lineage by tissue culture methods.
48
Modern Biotechnology Activity in New Zealand
Classification of Biotechnology Activity Output
Activity
Human health – biotechnologies
• Diagnosis
• Therapeutics/pharmaceuticals
•
Gene therapy
Bio-informatics
Genomics and molecular modelling
Agricultural - biotechnology
Plant biotechnology
Animal biotechnology
Biofertilizers/biopesticides/bioherbicides/
biological feed additives/microbial
pest control
Non-food applications of agricultural
products
Food processing
Bioprocessing in brewing, baking dairy etc
Functional foods/nutriceuticals
Whole natural products
Aquaculture
Fish health
Broodstock genetics
Bioextraction
Mining/energy/petroleum/chemicals
Microbiologically enhanced petroleum/
mineral recovery
Examples
Immunodiagnostics, gene probes, biosensors
Vaccines, immune stimulants,
biopharmaceuticals, rational drug design,
drug delivery, combinatorial chemistry,
production, extraction and purification of
phytopharmaceuticals
Gene identification, gene constructs, gene
delivery
DNA/RNA/protein sequencing and data
bases for humans, plants, animals and microorganisms
Tissue culture, embryogenesis, genetic
markers, genetic engineering
Diagnostics, therapeutics, embryo
transplantation, genetic markers, genetic
engineering.
Bacteria, fungi, yeasts
Natural source chemical pesticides
Using enzymes, bacteria and yeast culture
Probiotics, unsaturated fatty acids
Herbs, bee pollen, velvet or other dietary
supplements
Diagnostics, therapeutics
Tracking superior traits, genetic
modification/engineering
Carageenan from seaweed, antifreeze
proteins from fish, flavours
Modern Biotechnology Activity in New Zealand
49
Classification of Biotechnology Activity Output Continued.
Industrial processing (cleaner)
Biodesulphurization, bio-cracking, biorecovery
Forest products
Silviculture
Industrial processing (cleaner)
Environment
Biofiltration
Bio-remediation and phytoremediation
Custom synthesis - chemical or biological
Ectomycorrhizae, tissue culture, somatic
embryogenesis, genetic markers, genetic
engineering
Biopulping, biobleaching, biological
prevention of sapstain
Treatment of organic emissions to air/water
Detection of toxic substances using
bioindicators, biosensors, immunodiagnostics
Peptides, proteins, nucleotides, hormones,
growth factors, biochemicals
50
Modern Biotechnology Activity in New Zealand
Glossary of Statistics New Zealand Terms
Term
Enterprise
Geographic Unit
Statistics New Zealand Business Frame
Description
An enterprise is a single business entity
operating in New Zealand as a legally
constituted body such as a:
-company
-partnership
-trust
-local government trading organisation
-central government trading organisation
-incorporated society
-sole proprietorship.
A geographic unit is a kind-of-activity
(KAU) or part of a KAU and is normally an
unbroken physical area/site on or from which
one or predominantly one kind of economic
activity takes place on a permanent basis.
Employment and location data must be able
to be produced for a geographic unit.
The Business Frame is a database of New
Zealand businesses and their structure. It
records details such as names and addresses,
predominant type of industrial activity
performed, employment levels, and the
degree of overseas ownership.
The population for the Business Frame is
consists of enterprises who are actively
trading and whose annual GST sales and
expenses are greater than $30,000.
Businesses are identified from the Goods and
Services Tax (GST) registrations suplied by
the Inland Revenue Department.
Australian and New Zealand Standard
Industrial Classification (ANZSIC)
ANZSIC was jointly developed by by the
Australian Bureau of Statistics and Statistics
New Zealand. It reflects contemporary
economic activity in Australia and New
Zealand, and is also closely aligned to the
International Standard Industrial
Classification.
The ANZSIC has a structure comprising
categories at four levels, namely divisions
(the broadest level), subdivisions, groups and
classes (the finest level).The classifications
used in the report are at the group level.
Modern Biotechnology Activity in New Zealand
51
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