The bio-economy and the competition state : transcending the dichotomy between coordinated and liberal market economies

This article examines the role of the state in the emerging bio-economy. The starting point is that state interventions, including supportive regulatory arrangements and the shaping of public attitudes, constitute core assets in the evolution of bio-industrial complexes. Public policy in the bio-economy, across advanced industrial countries, is well captured by the “competition state” concept. This type of state takes different forms, analogously with the historical variants of the Keynesian welfare state. The article compares patterns of governance of the biotechnology sector in Finland and Sweden, the USA and the UK, and Australia. It is concluded that the bio-industry sector does not fit with the “models of capitalism” paradigm which postulates coherence within, and systemic divergences between, national models of economic governance. The bio-economy displays trends toward convergence, in particular mounting public investments in health care and in research and development. On the other hand, countries differ in their approach to market regulation, industrial support, and ethical restrictions. These differences do not follow the dichotomy between “liberal” and “coordinated” models of capitalism.

Biopharmaceutical innovation and industrial developments in South Korea, Singapore and Taiwan

South Korea, Singapore and Taiwan are well known as export-oriented developmental states which for decades employed industrial policy to target particular industries for government support. In the past fifteen years, these three countries all identified the biopharmaceutical industry as a strategic sector. This article explores, through economic analysis, the rationale for this decision and the strategies chosen for linking into the global bio-economy with the objective of catching up in biopharmaceuticals. The paper identifies three comparative advantages enjoyed by these countries in the biopharma sector: (1) public investments in basic research; (2) private investments in phase 1 clinical trials; and (3) a potentially significant contract research industry managing latter-stage clinical trials. Governments employ a range of industrial policies, consistent with these comparative advantages, to promote the biopharmaceutical industry, including public investment in biomedical hubs, research funding and research and development (R&D) tax credits. We argue that the most important feature of the biopharmaceutical industry in these countries is the dominant role of the public sector. That these countries have made progress in innovative capabilities is illustrated by input measures such as R&D expenditure as share of gross domestic product, number of patents granted and clinical trials, and volume of foreign direct investment. In contrast, output indicators such as approval of new chemical entities suggest that the process of catching up has only just commenced. Pharmaceutical innovation is at the stage of mainly generating inputs to integrated processes controlled by the globally incumbent firms.

Fermentative production of rhamnosidase from Staphylococcus xylosus MAK 2 in a bioreactor for bio-energy generation

Increasing concern about the environment, food and feed shortages and hike in the price of petroleum have stimulated interest in new ways of producing biofuels. The interest is rapidly increasing towards converting agricultural wastes to commercially valuable products. Biofuels made from waste biomass can offer immediate and sustained greenhouse gas advantages. In this direction, we are focusing on Citrus processing waste, a byproduct of juice manufacture, which contains high amount of flavonoids and polysaccharides. There is a considerable industrial interest in the enzymatic transformation of flavonoids to hydrolysis products; that offers a pathway to bio-energy generation. Rhamnosidase of bacterial origin are very few and thus are potentially subject for research.

Staphylococcus xylosus, Gram positive cocci, a nonpathogenic member of CNS family, isolated from soil was used to produce α-L-rhamnosidase. This new strain, so far unknown for the production of α-L-Rhamnosidase, was identified and characterized as Staphyloccocus sp. through biochemical tests and 16S DNA sequence analysis. Effect of various medium and process parameters like pH, temperature, aeration and agitation rates and inducer concentration were studied. Further, the enzyme activity was enhanced by adding the inducer and divalent metal ion to the optimised fermentation medium. We have recovered important sugars “rhamnose” and “galacturonic acid” from the processed waste which would be utilized for ethanol production. This presentation will summarize current efforts to develop an enzymatic treatment which would facilitate the economical processing of citrus waste for bioenergy generation.