What is a biotech?

Comité Biotechs/Medtechs
Jun 16, 2021
4 min read

Biotechnology is experiencing impressive growth in all economic sectors and covers multiple applications. Moreover, the term "biotechs" is now widely used in the ecosystem mixing technology and entrepreneurship. In order to easily navigate the vast world of technological innovation while using this term wisely, it is necessary to clarify the real definition of a company using biotechnology and nicknamed "biotech".

The Organisation for Economic Co-operation and Development (OECD) has defined biotechnology as the application of science and technology to living organisms, as well as to their components, products and models, to modify living or non-living materials for the production of knowledge, goods and services. This definition is deliberately broad and encompasses a multitude of techniques that may be based on DNA/RNA, proteins, cellular or tissue engineering, gene and RNA vectors, nanotechnologies, etc.

Biotech companies therefore rely on these technologies to develop solutions. Although they are in the majority, their areas of activity are not only limited to the pharmaceutical and medical fields, but also to many other sectors such as agriculture, biofuels or agri-food. As a result, biotechs and researchers follow strict protocols for testing and analysis, ensuring that products are used ethically and seek to improve the quality of life of consumers and the environment in which they live.

Different families of biotechnologies

As mentioned above, biotechnology occupies a wide variety of application areas that seek to solve problems in many sectors. To define the needs, capabilities and ethics of each application, biotechs can be divided into several categories based on the solutions they seek to create.

Thus, in an effort to simplify didactics, it was proposed and accepted to order the existing biotechnologies according to a color code. This classification, adopted a few years ago, has five main colors. It is as follows:

the red biotechnologies concern the health sector. It involves all activities related to the research and creation of drugs or veterinary products, including vaccines, antibiotics and molecular diagnostic techniques. Genetic engineering processes are also used to research the causes of diseases and develop potential cures. Genetic engineering is a field in which there are, in general, no particular problems of public acceptance (except for ethical issues);

the green biotechnologies include plant transgenesis (GMOs). It involves the creation of new plant varieties for specific uses, such as the production of biopesticides and biofertilizers. Biotechnology in this category inserts one or more genes into an organism to correct specific deficiencies in a plant. The genes may come from the same species or from other species, resulting in healthier ecosystems and more resources available for harvest.

the white biotechnologies, in a context of sustainable development and the use of renewable raw materials instead of fossil carbon, include industrial applications which, through the use of biological systems, are alternatives to conventional chemical processes. Biofuels (bioethanol or biodiesel by enzymatic way) are the flagship products.

the yellow biotechnology refers to all biotechnology companies and products related to food production. One of the most popular examples of yellow biotechnology is the process of fermentation, in which bacteria or other microorganisms break down substances and transform their chemical composition. The first article on fermentation dates back to 1789 and was written by Lavoisier.

the blue biotechnology refers to the use and exploitation of marine resources. Due to the predominance of water on Earth, blue biotechnology has the greatest range of biodiversity and, therefore, the greatest overall potential for future biotechnological developments. From alternative energy to vitamin production, blue biotechnology has enabled enormous advances in quality of life. The introduction of transgenic fish, plants, and microorganisms into marine environments can lead to reduced pollution, increased resource abundance, and a better understanding of many unexplored regions of the world.

Although not directly involved in the creation of biotechnology products, additional categories exist such as dark biotechnology, relating to the manufacture of weapons of war through chemical synthesis.

A dynamic French ecosystem

According to the 18th edition of the Panorama France Healthtech 2020, more than 750 biotechs will be established in France in 2020 and around 60 biotechs will be created each year. These companies alone are responsible for 1,900 medical innovations that are either in development or already on the market. This is made possible by the very favorable French ecosystem in which biotechs evolve, with a territory combining 7 competitiveness clusters totally dedicated to the Pharma and Biotech sector: Alsace Biovalley, Atlantic Biotherapies, Cancer Bio Santé, Eurobiomed, Lyon Biopôle, Medicen and Nutrition Santé Longévité.

These figures show how much value is created by biotechs in France, especially in the pharmaceutical and medical fields. The driving force of this sector remains academic research. Indeed, more than half of French biotechs were born as a result of work initiated in academic research through partnerships. These partnerships with academic research, carried out by nearly 50% of biotechs, strongly encourage the emergence of innovation.

Thus, this fast-growing sector, which is prone to increasing market capitalization and relies on the excellence of French researchers, is considered by investors to be the sector that will drive most of France's future growth.